Banking
Corporate FD
Also known as: Company Fixed Deposit, NBFC Fixed Deposit, Non-Banking Company Deposit
Fixed deposits issued by companies and NBFCs offering higher interest rates than bank FDs but carrying credit risk.
Detailed Explanation
Corporate Fixed Deposits are term deposits issued by companies, NBFCs, and housing finance companies to raise funds from retail investors. They typically offer 0.5-2% higher interest rates than bank FDs but carry credit risk since they lack DICGC deposit insurance protection. The safety depends entirely on the issuer's financial health and credit rating. Popular issuers include Bajaj Finance, Mahindra Finance, and various housing finance companies.