Investing in Corporate Fixed Deposits (FDs) can be a great way to earn higher returns compared to traditional bank FDs. Corporate FDs are offered by Non-Banking Financial Companies (NBFCs) and corporations, providing competitive interest rates with moderate risk. In this guide, we’ll walk you through how to invest in corporate FDs online in India in 2025 in simple steps.
What is a Corporate Fixed Deposit?
A Corporate FD is a term deposit offered by companies and NBFCs to raise funds from the public. These FDs usually offer higher interest rates than bank FDs but come with varying degrees of risk based on the company's financial stability and credit rating.
Benefits of Investing in Corporate FD
Higher Interest Rates: Corporate FDs generally offer 1-3% higher returns compared to bank FDs.
Flexible Tenure: Investors can choose from short-term (6 months) to long-term (5 years or more).
Periodic Interest Payouts: Options available for monthly, quarterly, or yearly payouts.
Online Application Process: Seamless and hassle-free online investment options.
Diversification: Helps in diversifying your investment portfolio beyond traditional options.
Step-by-Step Guide to Invest in Corporate FD Online
Step 1: Choose a Reputable Company
Before investing, research and select a company that offers corporate FDs with good credit ratings (AAA or AA) from agencies like CRISIL, ICRA, or CARE.
Step 2: Compare Interest Rates & Tenure
Check the latest interest rates, payout options, and investment tenure. Many corporate FDs offer senior citizens higher interest rates.
Step 3: Check the Company’s Credit Rating
Always verify the credit rating of the company before investing. Higher-rated companies (AAA or AA) ensure better safety for your investment.
Step 4: Visit the Official Website or Aggregator Platform
You can invest in corporate FDs through official company websites or trusted investment platforms like Bajaj Finserv, HDFC Securities, and ICICI Direct.
Step 5: Complete the KYC Process
Upload the required KYC documents like:
PAN Card
Aadhaar Card
Bank Details (for auto-credit of interest/payout)
Step 6: Select Investment Amount & Tenure
Enter your investment amount, preferred tenure, and interest payout option (cumulative or non-cumulative).
Step 7: Make the Payment Online
Use net banking, UPI, or debit card to make the payment securely.
Step 8: Get Confirmation & Receipt
After a successful transaction, you will receive a digital receipt and FD certificate via email or on the company’s dashboard.
Things to Consider Before Investing
Risk Factor: Corporate FDs are not covered under DICGC insurance like bank FDs.
Liquidity Issues: Premature withdrawal may attract penalties.
Taxation: Interest earned is taxable under your income tax slab.
Company Reputation: Check the company’s financial health and track record.
Best Corporate FDs to Invest in 2025
Some top-rated companies offering competitive interest rates on Corporate FDs in 2025 include:
Bajaj Finance FD
Mahindra Finance FD
HDFC Ltd FD
Sundaram Finance FD
LIC Housing Finance FD
Final Thoughts
Investing in Corporate Fixed Deposits online is a smart move for investors seeking higher returns with moderate risk. Always ensure you choose top-rated companies and diversify your portfolio for financial security.
By following these easy steps, you can start your investment journey in Corporate FDs and enjoy stable returns in 2025!
