Corporate/Company Fixed Deposits in India 2025 - Rates & Features

The rate of interest offered under company FD schemes are mentioned in the table below: 

Note: The rate of interest mentioned above is as of 5 December 2025 and is subject to change and the discretion of the lender.

Why choose a Company Fixed Deposit? 

Company fixed deposits are a great choice for people looking for a safe way to invest their money with a guaranteed return in the short to medium term. Company fixed deposits typically offer higher interest rates compared to regular bank fixed deposits. Therefore, company fixed deposits are a good option for anyone looking to build their savings over time.  

Prior to investing in company fixed deposits, it is essential that you properly research the financial state of the company, interest rates, and the length of time the company is offering its deposits. This will help you determine which fixed deposit option is the best choice to meet your financial goals. 

How to Evaluate Company Fixed Deposits? 

Investors can determine the safety of a company fixed deposit by checking the credit ratings assigned to it by leading credit rating agencies such as ICRA, CARE, and CRISIL. Credit ratings provide insight into the financial health of the company, which will allow you to understand how reliable the company is in making its payments on its fixed deposit.  

When you evaluate a fixed deposit's credit rating and compare it against other offerings from that company, the company fixed deposit with the highest credit rating should be considered the best option for you. 

Benefits of Corporate FDs 

The benefits of corporate FDs are given below: 

1. Offer 1.00 to 3.00% higher interest rates than bank FDs. 

1. Flexible tenure options from a few months to several years. 

1. Provide regular income through periodic interest payouts. 

1. Relatively safe when invested in high-rated companies. 

1. Premature withdrawals allowed with penalties. 

1. Loans can be taken against FDs. 

1. Easy to invest with clear terms and transparent returns. 

1. Safety ratings are provided by CRISIL and ICRA. 

1. Offers both cumulative and non-cumulative payout options. 

Features of Corporate FD  

The features of corporate fixed deposit have been discussed in detail in the table below:  

Top Factors to Consider When Choosing the Best Corporate FD 

When selecting a corporate fixed deposit (FD), it’s important to look beyond just the returns. Here are key factors to evaluate before choosing a Corporate Fixed deposit: 

1. Check the Credit Rating First: Begin by reviewing the credit rating assigned by agencies like CRISIL or ICRA. These ratings reflect the financial health of the company, and the risk involved.  A high rating ensures greater safety of your investment and should be the first box to tick. 

2. Compare Interest Rates Across Options: Once you've shortlisted financially stable institutions, compare the interest rates they offer. Even a 0.5% difference can lead to significant gains over time. Some NBFCs also provide higher rates for senior citizens or longer tenures-something worth exploring. 

3. Understand Deposit Limits and Flexibility: Finally, check the minimum and maximum deposit limits set by the company. You don’t want to plan for an investment of Rs.25,000 only to find the minimum requirement is Rs.50,000. Confirming this in advance helps you avoid last-minute changes to your investment strategy. 

4. Liquidity options: Before investing in a corporate or company fixed deposit scheme, know well about the withdrawal terms and conditions. 

5. Taxation: Understand the tax implication of investing in corporate FD if you fall under a high tax bracket. 

Eligibility Criteria for Company FD

The following are the eligibility criteria for applying for Corporate FD: 

Documents Required for Corporate or Company FD 

The following are the documents required for applying for Corporate or Company FD: 

1. Driving license 
2. Aadhar card 
3. Voter ID card 
4. Ration card 
5. Passport 

1. PAN card 
2. Valid Employee’s ID 
3. Two colour passport-sized photograph 
4. NREGA Job Card 
5. Government-validated address proof 

1. Valid Employee’s ID 

Top Company Fixed Deposit Features and Interest Rates

The following is the list of some of the significant Company fixed deposit schemes, their features, and interest rates: 

Kerala Transport Development Finance Corporation Fixed Deposit Scheme

Here are the details of Kerala Transport Development Finance Corporation Fixed Deposit Scheme:  

1. The Kerala Government guarantees this FD scheme which significantly reduces the risk while investing.
2. The senior citizens get an additional interest benefit of 0.25% with this scheme.
3. The depositor gets a renewal option with this scheme.
4. The minimum deposit amount is Rs.10,000 and can be incremented in multiples of Rs.1000 except for renewals.
   

1. Scheme Options: 
2. Renewal Option: Deposits can be renewed, with revised interest rates applicable for renewals on or after 1 August 2025. 

1. Deposit Tenure: Currently, only the Periodic Interest Payment Scheme (PIPS) Monthly is available, with deposit periods of 12 months and 24 months. Earlier Money Multiplier Scheme (MMS) and PIPS Quarterly options are suspended from 1 August 2025.  

1. Interest Payout: Interest is paid monthly under the PIPS scheme. Tax (TDS) is applicable as per the prevailing rules. 

1. Application Process: FD applications can be made using downloadable forms provided by KTDFC, including FD application forms, RTGS/NEFT forms, and nomination forms. 

LIC Housing Finance Corporate Deposit Scheme

The interest rate of LIC Housing Finance Corporate deposit scheme is listed in the table below: 

Note: The rate of interest mentioned above is as of  on 5 December 2025 and are subject to change and the discretion of the lender. 

ICICI Bank Corporate Fixed Deposit 

Here are the details of ICICI Bank Corporate FD: 

1. The eligible entities for these FDs are government bodies, trusts, capital markets, and businesses. 

1. No interest will be earned if the fund is withdrawn prematurely within seven days of deposit. 

1. Deposits can be made through multiple channels, such as Corporate Internet Banking (CIB), API, InstaBIZ or by visiting the branch. 

1. Interest is paid either monthly, quarterly, or on maturity. 

1. Offers premature or partial withdrawal of funds. 

1. Premature withdrawal is not permitted for non-callable FD. 

1. Provides flexible return options as per your preference. 

1. Interest paid is subject to TDS (Tax Deducted at Source) as per Income Tax slab. 
   Here are the details of LIC Housing Finance Corporate Deposit Scheme: 

Note: The interest rate is subject to change from time to time at the discretion of the bank. The rates were updated on 5 December 2025.

Bajaj Finance Corporate FD 

Here are the details of corporate FDs offered by Bajaj Finance: 

1. These FDs have ratings of CRISIL AAA and ICRA AAA. 

1. Offers periodic payment options. 

1. Does not get affected by market fluctuations. 

1. Premature withdrawal is allowed with minimum penalty. 

1. Interest earned is subject to TDS if the amount is more than Rs.10,000. 

Note: The interest rates mentioned above are as of 5 December 2025 and are subject to change at the discretion of the lender. 

Muthoot Capital Services Limited 

Here are the details of Corporate FD offered by Muthoot Capital Services Ltd.

1. The scheme offers monthly, annual, and maturity plans. 

1. The plans offer an additional 0.25% rate of interest to senior citizens. 

1. The scheme ensures guaranteed returns, easy withdrawal, encourages savings habits, and offers flexible interest payout options. 

1. The minimum deposit amount is Rs.1000. 

1. The minimum and maximum deposit tenure is 12 months and 60 months, respectively. 

1. Deposits can be made by Resident Individuals, Non-Resident India (NRIs and Person of Indian Origin (PIOs)would be accepted on non-repatriation basis only), Trust, and HUFs (through Karta). 

1. Depositors can avail themselves of loan against deposit, nomination facility, joint deposit account not more than three members, and others.

The rate of interest for cumulative deposit (monthly scheme) offered under corporate FD scheme is given in the table below: 

Note: The interest rates mentioned above are as of 5 December 2025 and are subject to change at the discretion of the lender.

Tax Implications on Corporate Deposits

The following are the details regarding tax implications on corporate deposits:  

1. Taxes on interest earned: Any interest earned from corporate fixed deposits is taxed and reported on your annual tax return, and how much you will be taxed depends on which income tax bracket you fall into. 

1. Impact of tax on returns: When you receive an interest rate on a fixed deposit, the net amount you will receive in cash will be reduced by taxes. 

1. Tax deduction at source: Most companies will deduct TDS from the interest you have received if it exceeds the legally established limit. This provides assurance that you have already made some contribution to the tax payment upfront. 

1. Avoiding tax deduction at source: If your total income is less than the taxable amount, you can submit Form 15G (for non-seniors) or Form 15H (for seniors) to the bank or NBFC. This will prevent TDS from being deducted. 

1. Advance tax payments: If your total tax dues are going to be substantial this year, you may be required to pay advance tax in three instalments before the end of the financial year, thus allowing you to avoid any penalties and/or interest charges for being underpaid. 

Company Fixed Deposit Interest Rates

The important things that you need to know about the fixed deposit interest rates offered by non-banking finance companies are:

1. The interest rates are determined by the duration of the term deposit.
2. Most companies offer cumulative and non-cumulative interest rates.
3. Some companies offer a slightly higher interest rate for senior citizens.
4. Some companies also offer higher interest rates for employees who open FDs with them.
5. Sometimes the facility of higher interest rates may even be extended to the family of an employee.

Credit card Against Corporate/Company FD

Credit cards do make life easier, but it requires a lot of documentation as compared to an FD. In case you have an FD, you can opt for a credit card against an FD, i.e. a secured credit card. You will continue earning interest on your FD even if you pledge the FD as security for a credit card.

The credit limit for a credit card is low, so you can use it to build a credit score by clearing outstanding balance on time.