Corporation or Business Fixed Deposits and Their Interest Rates
**Investing in Corporate Fixed Deposits: A Comprehensive Guide**
Are you looking for a secure investment option with competitive returns? Consider corporate fixed deposits (FDs), a popular choice among investors in India. Here's a breakdown of the process, current rates, and essential factors to consider before investing.
**Applying for a Corporate FD**
Investors can now easily apply for a company FD online after completing basic Know Your Customer (KYC) requirements with the company. To do this, simply visit the company's or non-banking financial institution's (NBFC) website, submit necessary proofs to complete the KYC process, and purchase the FD.
**Current Corporate FD Rates**
As of July 2025, the following are the best corporate FD rates among notable non-banking and housing finance corporations:
| Company Name | 1-Year Rate | 3-Year Rate | 5-Year Rate | Tenure Range | Additional for Seniors | |----------------------------------------|-------------|-------------|-------------|---------------|-----------------------| | Manipal Housing Finance Syndicate | 8.25% | 8.25% | 7.75% | 12–60 months | 0.25% | | Muthoot Capital Services Limited | 7.90% | 8.95% | 8.50% | 12–60 months | 0.25% | | Mahindra Finance | 6.60% | 7.00% | 7.00% | 12–60 months | 0.10%–0.25% | | Shriram Finance | 7.11% | 7.72% | 7.72% | 12–60 months | 0.50% | | ICICI Home Finance | 6.85% | 7.15% | 7.15% | 12–120 months | 0.35% | | Sundaram Home Finance | 6.70% | 7.00% | 7.15% | 12–60 months | 0.35%–0.50% |
**Withdrawing a Corporate FD**
The basic process of premature corporate FD withdrawal requires submitting the original fixed deposit receipt, a canceled cheque, and a request letter from the client with the reason for the withdrawal.
**Comparing Corporate FD Rates**
When choosing a corporate FD, consider the credit rating of the company from CRISIL, ICRA, or CARE, the company's FD rates of interest, the financial history and standing of the company offering the deposit, and past repayment history.
**Taxation on Corporate Deposits**
Interest earned on corporate deposits is taxable as per the income tax bracket you fall under. If the interest earned in a financial year from a corporate FD exceeds Rs.5,000, TDS will be deducted. To avoid paying TDS, submit Form 15G (or Form 15H in the case of senior citizens) to the bank or non-banking financial institution.
**Eligibility for Corporate FDs**
Corporate FDs are open to individuals (residents and non-resident Indians), cooperatives, societies, partnership companies, Hindu Undivided Families (HUF), educational institutions, and various government schemes such as NREGA Job Cards.
**Documents Required for Corporate FDs**
To invest in a corporate FD, you will need a PAN Card, Aadhaar Card, government-validated address proof, and 2 colour passport-sized photographs. Additionally, for senior citizens, a valid proof of age (such as a passport or Ration Card) is required.
**Key Takeaways**
- Competitive corporate FD rates are available from various non-banking and housing finance corporations. - Rates can change frequently, so it's essential to verify with the issuer for precise historical rates. - To apply for a corporate FD, visit the company's or NBFC's website, submit proofs to complete KYC requirements, and purchase the FD. - When choosing a corporate FD, consider the credit rating, company's FD rates, financial history, and past repayment history. - Interest earned on corporate deposits is taxable, and TDS may be deducted if the interest exceeds Rs.5,000 in a financial year. To avoid TDS, submit Form 15G or 15H. - Eligibility for corporate FDs includes individuals, cooperatives, societies, partnership companies, HUF, educational institutions, and various government schemes. - Essential documents required for investing in a corporate FD include a PAN Card, Aadhaar Card, government-validated address proof, and 2 colour passport-sized photographs. For senior citizens, a valid proof of age is also required.
If you're considering diversifying your personal-finance portfolio, it's worth looking into investing in insurance coverage to safeguard your finances. While corporate fixed deposits (FDs) offer competitive returns and are a popular choice among investors, it's crucial to ensure your overall financial plan includes a mix of investments and risk management strategies, such as insurance coverage, for a well-rounded approach to personal-finance.
