A corporate fixed deposit pays more than a bank, and the difference is the price of the deposit insurance it does not carry. This puts that trade in rupees rather than in basis points.
Rate card as published by each issuer. Check the current sheet before committing
The bank comparison uses a representative large-bank rate for a comparable tenor, 6.50%. Simple interest on both sides so the two are comparable, and both are gross of tax: interest here is taxed at your slab rate. That difference is what you are being paid for giving up the ₹5 lakh DICGC cover a bank deposit carries. Indicative, not an assurance.
Take these numbers to the deskSimple interest on both sides, deliberately. Compounding the company deposit and not the bank one would flatter it, and compounding both would assume a reinvestment rate nobody has promised. The page is arithmetic on stated terms.
Each payout frequency divides the annual interest into that many payments, so a monthly option on a ₹5 lakh deposit at 8.25% pays roughly ₹3,438 a month. Senior citizen rates add the issuer’s own increment where one applies, and the condition attached to it is printed with the result.
The comparison figure is a representative large-bank rate for the same tenor, so the difference shown is what the extra credit risk is paying you. Both sides are gross of tax, and interest on either is taxed at your slab rate.
There is no deposit insurance on a company deposit. A bank deposit is covered to ₹5 lakh per depositor per bank by the DICGC. A company deposit is an unsecured claim on that company, and the extra rate is precisely what you are being paid to take it. If the issuer cannot pay, there is no fund behind it.
The rates shown are those published by each issuer at the time the page data was refreshed. Company deposit rates change, sometimes at short notice, and the current sheet governs.
Premature withdrawal is generally more restrictive than on a bank deposit, often with a minimum lock-in of three months and a lower rate thereafter. Check the specific terms before treating the money as reachable.
The page shows no post-tax figure. Interest is taxed at your slab as it accrues, so a 8.25% deposit is roughly 5.78% for a 30% taxpayer. The post-tax yield calculator puts it beside the alternatives.
A deposit with a company rather than a bank, normally a non-banking finance company or a housing finance company, at a contracted rate for a contracted term. It is a loan to that company, documented as a deposit.
It pays more than a bank deposit for one reason: it carries no deposit insurance and ranks as an unsecured claim if the issuer fails. Everything else about it, including the tax treatment, is the same.
Typically one to two percentage points above a comparable bank deposit, and the calculator shows what that means in rupees rather than as a rate. On a ₹5 lakh three-year deposit the difference is usually a few tens of thousands, which is a useful figure to hold next to the question of what you are accepting in exchange for it.
It depends entirely on the issuer, and the credit rating is the starting point rather than the answer. A AAA-rated deposit from a large, long-established finance company is a materially different proposition from a higher-yielding one further down the scale. What is true of all of them is that there is no insurance behind the deposit, so the issuer’s own solvency is the whole of your protection.
At your slab rate, as it accrues, exactly like a bank deposit. There is no special rate and no concession for holding longer. TDS applies above the threshold and is credited against your final bill rather than being an additional charge. For a 30% taxpayer an 8.25% deposit is a 5.78% deposit, and against 6% inflation that is slightly negative in real terms.
Usually only after a minimum period, commonly three months, and then at a reduced rate. The terms are set by each issuer and are generally less accommodating than a bank’s. Money that might be needed at short notice does not belong here, which is a stronger constraint than the rate difference is an attraction.
Concentration is the risk that actually bites in this category. The relevant question is not whether an issuer is sound today but what share of your fixed income sits with any single one, because the failure mode is total rather than partial. Spreading across issuers costs nothing but paperwork.
They are close cousins with different mechanics. A deposit is a contract with the company and cannot normally be sold; a listed bond from the same issuer can be sold in the secondary market, though retail liquidity is often thin. Ranking in a default depends on whether the bond is secured. The yields are usually similar, so the choice generally comes down to liquidity and paperwork.
The current rate sheet rather than any published figure, the credit rating and who assigned it, the premature withdrawal terms, and how much of your fixed income is already with the same issuer. Then the post-tax number, because at a 30% slab the headline rate is a third larger than what you keep.
No. DICGC cover of ₹5 lakh per depositor per bank applies to bank deposits only. A company deposit is an unsecured claim on that company, and the higher rate is the compensation for that difference.
Typically one to two percentage points for a comparable tenor. The calculator converts that into a rupee figure, which is a more useful way to judge whether the extra credit risk is worth taking.
No. It is taxed at your slab rate as it accrues, exactly like bank deposit interest, with TDS above the threshold credited against your final liability.
Most issuers add an increment, and the amount and the conditions vary by issuer. The condition attached is shown with the result when the senior option is selected.
Generally only after a minimum period, commonly three months, and at a reduced rate. Terms vary by issuer and are usually less flexible than a bank's, so this is not money to treat as reachable.
No. The list is what the desk can place, shown in a fixed order that expresses no view, and no issuer is presented as preferable to another. These products are facilitated via our partner Motilal Oswal Financial Services Ltd.
Talk to the desk
How much of your fixed income sits with any one issuer matters more than the last twenty basis points, and it is not something a rate table can tell you. Send us what you hold and we will look at it together.
