What are corporate FDs?

Corporate Fixed Deposits are term deposits offered by companies and NBFCs to raise funds. They generally provide higher returns compared to traditional bank FDs.

Are corporate FDs safe?

Unlike bank FDs, corporate FDs are not insured by DICGC. Their safety depends on the issuer’s credit rating. Always choose FDs rated ‘AA’ or higher and invest through verified platforms.

How are corporate FDs different from bank FDs?

Corporate FDs typically offer higher interest rates but carry slightly higher risk as they are not insured by DICGC. On the other hand, bank FDs offer insured protection up to ₹5 lakh.

Can senior citizens get higher corporate FD rates?

Yes, most companies offer 0.25% to 0.50% higher corporate FD rates for senior citizens. It makes them ideal for retirees who are seeking a stable income.

What is the minimum investment amount in a corporate FD?

It varies by issuer, but most corporate FDs start from ₹10,000 to ₹25,000, depending on the company’s policy.

Corporate Banks FD Rates 2026

Name: Corporate Banks FD Rates 2026
Brand: Interest Rates
Rating: 4.9 (12315 reviews)

In 2026, investors are showing a renewed preference for fixed-income products as market volatility rises. Among these, corporate fixed deposits (FDs) have gained traction for offering interest rates 1% to 2% higher than traditional bank FDs.

However, before you invest, it is essential to understand the latest corporate FD rates, benefits, eligibility criteria and other key details that influence overall returns.

Corporate Fixed Deposit Rates for General and Senior Citizens

Corporate FD interest rates in India range between 7.50% and 8.95% per annum for general investors. Senior citizens enjoy even better deals. They get an additional 0.25% to 0.50% interest rates.

Corporate Bank	Min FD Rate (General Citizen)	Max FD rate (General Citizen)	Min FD rates (Senior citizen)	Max FD rate (senior citizen)
Shriram Finance	7.00%	7.60%	7.50%	8.10%
Muthoot Capital	7.65%	8.60%	7.90%	8.85%
Mahindra Finance	6.00%	7.00%	6.25	7.25%
LIC HFL	6.70%	6.90%	6.95%	7.20%
Punjab National Bank Housing Finance Ltd.	6.85%	7.10%	7.10%	7.35%
ICICI Home Finance Ltd	7.05%	7.10%	7.40%	7.45%

Well-known names like Shriram Finance, Bajaj Finance and Mahindra Finance continue to offer competitive schemes for both cumulative and non-cumulative FDs.

For investors who value safety, selecting issuers with a proven repayment history and high credit rating remains crucial.

Term-Wise Corporate Fixed Deposit Rates

When it comes to corporate FD rates, tenure plays a major role in determining how much you earn. Generally, the longer you stay invested, the higher the return.

Here is how interest rates differ across various tenures in 2026:

Short-Term Corporate FDs (1 Year)

In 2026, most reputed NBFCs are offering interest rates ranging between 6.50% and 8.25% per annum for tenures of one year. These deposits are especially suited for those planning short-term goals or creating an emergency corpus.

Many companies also provide monthly or quarterly payout options, which allow investors to receive regular income instead.

Medium-Term Corporate FDs (3 Years)

Corporate FD rates for this category typically fall between 7.75% and 8.38% per annum if you stay invested for 3 years.

Medium-term FDs also benefit from compounding power, which allows your interest to grow steadily while still offering the option to withdraw after two to three years if needed. Many investors prefer this tenure as it provides a steady growth curve without tying up funds for too long.

Long-Term Corporate FDs (5 Years)

As of 2026, corporates and NBFCs are offering 6.75% to 8.47% per annum for long-term deposits for 5 years.

These FDs are suitable for individuals planning for their long-term goals. Many investors also prefer annual or cumulative payout options for long-term FDs to maximise compounding benefits.

However, before committing, always check the company’s financial stability, credit rating and premature withdrawal policies.

Benefits of Corporate Fixed Deposit

Corporate Fixed Deposits continue to attract investors in 2026 because they offer a rare mix of high returns, flexibility and predictability. Here is a detailed overview of its benefits.

Higher Returns Compared to Bank FDs

Companies usually offer higher corporate FD rates than traditional bank deposits. While regular bank FDs currently yield around 6.60-8.15% per annum, top-rated corporate issuers are offering up to 8.95% per annum. It helps investors beat inflation and grow their wealth faster.

Flexible Tenures and Payout Options

You can choose investment tenures from 12 to 60 months, based on your financial goals. Moreover, the choice of monthly, quarterly or annual interest payouts gives investors complete control over income frequency.

Credit-Rated Security

Most leading issuers of corporate FDs maintain AA or AAA credit ratings from agencies like CRISIL. These ratings indicate strong financial stability and repayment capability, which reduces the risk of default.

Eligibility to Avail Corporate Fixed Deposit Rates

Before applying to corporate fixed deposits, check whether you meet the eligibility criteria.

Most issuers allow the following investors:

Resident Individuals
Hindu Undivided Families (HUFs)
Companies, Trusts, and Societies
Partnership Firms and LLPs
Registered co-operative societies and clubs

If you want to invest in a fixed deposit with higher interest rates up to 8.00%, apply online through Stable Money. Download the app today!

Documents Required to Avail Corporate Fixed Deposit Rates

You will need a few standard documents to open a corporate FD account:

Aadhaar Card
Voter ID Card
Passport
Driving License
PAN Card
NREGA Job Card, duly signed by an officer
Government-validated address proof
Colour Passport-sized photographs

These documents ensure smooth KYC verification and enable smooth and secure fund transfers.

Premature Withdrawal of Corporate Fixed Deposit

Most corporate fixed deposits (FDs) allow premature withdrawals after completing a minimum lock-in period of 3 months. However, the specific terms and conditions can vary significantly depending on the issuer’s policies.

While some companies may permit early withdrawal with minimal deductions, others may impose higher penalty charges on the interest earned.

Therefore, investors should carefully review the issuer’s early withdrawal policy before opening the FD.

Tax on Corporate Fixed Deposit Interest

Like bank FDs, the interest earned on corporate FDs is fully taxable under the ‘Income from Other Sources’ category.

Here is a quick summary of the taxation of Corporate Fixed Deposits:

TDS (Tax Deducted at Source) is applicable if interest income exceeds ₹5,000 in a financial year.
Investors can submit Form 15G (if below the age of 60) and 15H (for senior citizens) to avoid TDS deduction if eligible.

Overdraft Against Corporate Fixed Deposits

Some issuers allow investors to take loans or overdrafts against corporate FDs. For example, ICICI Bank offers an overdraft facility of up to 90% of the FD amount for its customers. The loan carries an interest rate about 1-2% higher than the FD rate.

This feature helps maintain liquidity without breaking the deposit prematurely. It is especially useful for businesses or individuals who want to meet short-term financial needs without losing interest income.

Corporate FD Calculator

Before investing, it is smart to estimate your maturity value using a Corporate FD Calculator.

Here is an example of estimated returns by using the FD calculator:

If you invest ₹5 lakh for 3 years at an annual interest rate of 8.5%, your maturity amount will be approximately ₹6.38 lakh, assuming annual compounding.

A FD Calculator simplifies this process by allowing you to adjust the tenure, amount and payout frequency instantly.

Why Should You Book an FD with Stable Money?

Stable Money offers a secure, transparent and paperless way to invest in top-rated FDs. Here is what makes it stand out among others:

Compare FDs from trusted banks and NBFCs all in one place.
Access exclusive high-yield rates and short-term options.
Get real-time safety ratings before investing.
Enjoy 100% digital onboarding with secure transactions.

Explore and invest in India’s best-performing FDs on the Stable Money app today! It is the easiest way to diversify your portfolio with reliable fixed-income instruments.