Corporate FDs
Corporate fixed deposits are term deposits issued by companies and non-banking financial institutions, generally offering higher interest rates than comparable bank FDs in exchange for taking on issuer credit risk instead of bank-level safety.
We help you choose issuers based on credit ratings and tenure that align with your safety expectations, using corporate FDs to add predictable, higher-yielding income to your fixed-income allocation.
Pick your fit
Types of corporate FDs
Cumulative FD
Interest compounds and is paid out along with the principal at maturity, maximising the effective yield.
Suited for investors who don't need regular income and want to maximise the maturity value.
Non-Cumulative FD
Interest is paid out monthly, quarterly or annually rather than compounding, providing regular income.
Suited for investors who want a predictable, recurring income stream.
AAA/High-Rated Issuer FD
Deposits with issuers carrying the highest credit ratings, prioritising safety over the last bit of extra yield.
Suited for conservative investors who want higher yield than bank FDs without stepping too far down in credit quality.
How they stack up
Corporate FDs vs Bank FDs vs Bonds
| Factor | Corporate FDs | Bank FDs | Bonds |
|---|---|---|---|
| Typical yield | Generally higher than bank FDs for comparable tenure | Lower, but backed by deposit insurance up to a limit | Varies by issuer and tenure, often market-linked |
| Safety | Depends on the issuer's credit rating — not bank-guaranteed | High — regulated, with deposit insurance cover | Depends on issuer, government bonds are safest |
| Liquidity | Premature withdrawal often allowed with a penalty | Premature withdrawal generally allowed with a penalty | Tradeable on exchanges, liquidity varies |
| Tenure flexibility | Typically 1-5 years | 7 days to 10 years | 1-10+ years depending on issuance |
| Best suited for | Investors seeking higher fixed income, comfortable assessing issuer risk | Capital safety as the top priority | Investors wanting tradeable, market-priced fixed income |
The bigger picture
What sets corporate FDs apart
Higher yield
Corporate FDs typically offer 0.5-2% higher rates than comparable bank FDs
Credit rated
Every corporate FD carries a published rating reflecting issuer safety
Fixed tenure
Rates are locked in at booking, unaffected by later rate changes
Flexible payouts
Choose cumulative growth or regular interest payouts to suit your needs
Common questions
Frequently asked questions
Not quite — bank FDs carry deposit insurance up to a regulated limit and are backed by a regulated banking entity. Corporate FDs depend on the issuing company's or NBFC's creditworthiness, reflected in its credit rating. Higher-rated issuers are generally safer but still carry more risk than a bank FD.
Getting started
How to book a corporate FD through Prospire
Step 1
Consultation
Discuss your income needs, tenure preference and comfort with issuer risk.
Step 2
Issuer selection
We shortlist corporate FDs based on credit rating, tenure and payout type.
Step 3
Onboarding & documentation
Complete KYC and the deposit booking formalities.
Step 4
Deposit goes live
Your FD is booked and tracked through to maturity.
Corporate FDs are not covered by bank deposit insurance and carry issuer credit risk. Please assess the issuer's credit rating and read all deposit terms carefully before investing.
Ready for higher fixed income?
Talk to an expert about whether a corporate FD fits your goals.
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