Introduction
In today’s financial landscape, investors are constantly looking for safe and high-return investment options. One such investment avenue is Corporate Fixed Deposits (FDs), which offer higher interest rates compared to traditional bank FDs. With the rise of digital platforms, investing in corporate FDs has become easier, allowing investors to complete the process entirely online.
Corporate FDs are fixed-term deposits offered by Non-Banking Financial Companies (NBFCs) and corporations to raise funds. These deposits provide attractive returns, but investors must carefully assess the creditworthiness of the issuing company before investing. In this comprehensive guide, we will cover everything you need to know about investing in corporate FDs online in India in 2025, including the benefits, risks, step-by-step process, and the best corporate FDs to consider.
What is a Corporate Fixed Deposit?
A Corporate FD is a term deposit provided by private companies and NBFCs to the public as a means of raising capital. These FDs usually offer higher interest rates than bank FDs but come with varying degrees of risk based on the company’s financial health and credit rating.
Key Features of Corporate FDs:
Higher Interest Rates: Generally, corporate FDs offer 1-3% higher returns than bank FDs.
Flexible Tenure Options: Investment durations range from 6 months to 10 years.
Different Payout Options: Choose between cumulative (interest paid at maturity) and non-cumulative (interest paid monthly/quarterly/annually).
Credit Ratings: Rated by CRISIL, ICRA, and CARE, indicating the safety level of the deposit.
Digital Investment: The entire investment process can be completed online from the comfort of your home.
Benefits of Investing in Corporate FD
Higher Returns – Corporate FDs generally provide better interest rates than banks, especially for senior citizens.
Flexible Investment Tenure – Investors can choose from short-term and long-term tenures as per their financial goals.
Periodic Interest Payouts – Offers interest payout options at regular intervals, making it a good choice for retirees.
Diversification of Portfolio – Helps in spreading investment risk by adding a fixed-income instrument to your portfolio.
Ease of Investment – Investing in corporate FDs online is hassle-free, quick, and secure.
Step-by-Step Guide to Invest in Corporate FD Online
Step 1: Choose a Reputable Company
Before investing, research and select a company that offers corporate FDs with good credit ratings (AAA or AA) from agencies like CRISIL, ICRA, or CARE. Investing in highly-rated corporate FDs minimizes risk.
Step 2: Compare Interest Rates & Tenure
Visit various financial platforms to compare the latest interest rates, payout options, and investment tenure. Some companies offer additional benefits for senior citizens.
Step 3: Check the Company’s Credit Rating
Always verify the credit rating of the company before investing. Higher-rated companies (AAA or AA ratings) ensure better safety and timely payouts.
Step 4: Visit the Official Website or Trusted Investment Platform
You can invest in corporate FDs directly through the official company website or via trusted financial intermediaries like:
Bajaj Finserv
HDFC Securities
ICICI Direct
Mahindra Finance
Step 5: Complete the KYC Process
To invest, you need to complete a Know Your Customer (KYC) verification by submitting the following documents:
PAN Card
Aadhaar Card
Bank Account Details (for auto-credit of interest/payout)
Step 6: Select Investment Amount & Tenure
Enter your investment amount, preferred tenure, and choose between cumulative or non-cumulative payout options based on your financial needs.
Step 7: Make the Payment Online
Use net banking, UPI, or debit card to make the payment securely. The company will generate an FD receipt once the transaction is completed.
Step 8: Get Confirmation & Digital FD Certificate
After a successful transaction, you will receive a digital receipt and FD certificate via email or on the company’s investment dashboard.
Things to Consider Before Investing in Corporate FDs
Risk Factor: Unlike bank FDs, corporate FDs are not covered under DICGC insurance.
Liquidity Issues: Some corporate FDs impose penalties on premature withdrawals.
Taxation: Interest earned is added to your taxable income and taxed as per your income slab.
Company Reputation: Always research the company’s financial health and past records before investing.
Lock-in Period: Some corporate FDs come with a minimum lock-in period, restricting early withdrawals.
Best Corporate FDs to Invest in 2025
Here are some of the top-rated corporate FDs offering competitive interest rates in 2025:
1. Bajaj Finance FD
Interest Rate: Up to 8.35% p.a.
Minimum Investment: 25,000
Tenure: 12 to 60 months
2. Mahindra Finance FD
Interest Rate: Up to 8.25% p.a.
Minimum Investment: 10,000
Tenure: 12 to 60 months
3. HDFC Ltd FD
Interest Rate: Up to 7.75% p.a.
Minimum Investment: 20,000
Tenure: 12 to 84 months
4. Sundaram Finance FD
Interest Rate: Up to 7.90% p.a.
Minimum Investment: 10,000
Tenure: 12 to 60 months
5. LIC Housing Finance FD
Interest Rate: Up to 7.85% p.a.
Minimum Investment: 20,000
Tenure: 12 to 60 months
Final Thoughts
Investing in Corporate Fixed Deposits online is a smart move for those seeking higher returns with moderate risk. However, it is crucial to select a financially stable company, check credit ratings, and diversify your investments to minimize risk.
By following these step-by-step guidelines, you can seamlessly invest in Corporate FDs and enjoy stable returns in 2025!
