CORPORATE FD

A Corporate FD is like putting your money in a savings account with a company instead of a bank, with the promise of getting it back with interest after a fixed period.

Key Features:

Deposit Agreement

When you invest in a Corporate FD, you're essentially lending money to a company for a fixed period, just like with a bank FD.

Interest Rate

The company pays you a fixed rate of interest on your deposit, similar to how a bank pays interest on your savings. This interest rate is determined by the company and is usually fixed for the entire tenure of the deposit.

Fixed Tenure

Like bank FDs, Corporate FDs also have a fixed tenure, ranging from a few months to several years. You agree to keep your money with the company for this period.

Safety and Risk

Corporate FDs typically offer higher interest rates compared to bank FDs, but they also come with higher risk.

Interest Payment

The company may choose to pay interest periodically (monthly, quarterly, annually) or at maturity, depending on the terms of the FD.