{"id":23564,"date":"2021-12-07T06:01:25","date_gmt":"2021-12-07T06:01:25","guid":{"rendered":"https:\/\/www.tatacapital.com\/blog\/?p=23564"},"modified":"2024-11-05T07:19:09","modified_gmt":"2024-11-05T07:19:09","slug":"corporate-fixed-deposit-vs-fixed-deposit-which-is-better","status":"publish","type":"post","link":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/fixed-deposits\/corporate-fixed-deposit-vs-fixed-deposit-which-is-better\/","title":{"rendered":"Corporate Fixed Deposit Vs. Fixed Deposit – Which is Better?"},"content":{"rendered":"\n

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If you were told that banks are the only institutions that offer fixed deposits, know that it\u2019s not true. One of India’s most popular investment instruments, the Fixed Deposit (FD), is also offered by Non-Banking Financial Corporations (NBFCs) and other companies. Collectively, these are known as Corporate Fixed Deposits or company FDs.<\/p>\n\n\n\n

Much like bank fixed deposits, company FDs are low risk instruments that provide guaranteed returns, and you can open one or more at different tenures.<\/p>\n\n\n\n

Despite several similarities between the two, depositors are often confused about choosing between a company FD or a bank FD.<\/p>\n\n\n\n

Know that no one type of FD is better than the other. Your choice simply depends on various factors like rate of returns, risk exposure, tenure availability, etc. Therefore, several depositors diversify their funds in both FD types.<\/p>\n\n\n\n

Corporate FD vs bank FD: features and differences<\/strong><\/h2>\n\n\n\n

Allow us to draw an unbiased comparison between these two types of fixed deposits so that you can plan your FD investments better.<\/p>\n\n\n\n

Parameter<\/strong><\/td>Company FD<\/strong><\/td>Bank FD<\/strong><\/td><\/tr>
Offering authority<\/td>These fixed deposits are extended by Non-Banking Financial Institutions (NBFCs) and companies.<\/td>Only public or private sector banks issue this type of fixed deposit.<\/td><\/tr>
Interest rates<\/td>Financial experts observe that typically, a company fixed deposit features higher interest rates.<\/td>Bank fixed deposits also offer a low to moderate interest rate, which is usually not higher than a company FD.<\/td><\/tr>
Risk<\/td>Company FDs are rated by rating agencies. And the returns are commensurate to the rating of that particular Fixed Deposit.<\/td>Bank FDs carry a comparatively lower risk owing to DICG scheme..   B<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Additional Read: <\/strong>Mutual Funds VS Fixed Deposit : Which One Should You Choose?<\/a><\/p>\n\n\n\n

How to choose?<\/strong><\/h2>\n\n\n\n

Consider the following factors before choosing any or both types of fixed deposits:<\/p>\n\n\n\n