What is Company Fixed Deposit, how different is it from Bank FD? Know the difference between interest and security

• Company FD or Bank FD: Which is better for your money?
• Difference between bank and corporate FD: interest, security, and benefits
• Company FD vs Bank FD: More interest or more security?
• Company Fixed Deposit: Know why it is different from bank FD
• Corporate FD: High returns, but what is the risk?

Bank FD has been a popular investment option among people for years. But do you know about company or corporate FD? Actually, company fixed deposit is different from bank FD. In this, the interest rate is higher, but the security is slightly less.

Corporate FDs are issued by non-banking finance companies (NBFCs) and small finance banks, and are called company fixed deposits or corporate FDs.

Corporate FDs offer higher interest than bank FDs, but the security of the money depends on the credibility of the NBFC. Only company FDs of highly rated NBFCs are considered more secure.

The risk in bank FD is less because the Government of India provides insurance up to Rs 5 lakh on bank FD. Corporate FDs may attract higher penalties for premature withdrawal, and some FDs do not allow premature withdrawal.

In contrast, bank FDs offer better liquidity options, allowing you to withdraw money with less penalty. Additionally, some bank FDs offer tax benefits with a lock-in period of 5-10 years, whereas corporate FDs offer no such tax benefits.