Bank FD Vs Corporate FD: 8 Things To Know

Meghna Maiti

Bank FD

A bank fixed deposit is held for a predetermined time and returns.

Bank FDs

Corporate FD

These fixed deposits also have a set duration and rate of return.

Corporate FDs

Safety & Reliability

Bank FDs are insured by DICGC for Rs 5 lakh per bank, while the safety of Corporate FDs depends on the company’s financial health and credibility.

Safe & Reliable

Interest Rates

Bank FD rates are influenced by economic conditions and central bank policies; Corporate FDs offer higher interest rates as per their funding needs.

Interest Rates


Bank FDs offer moderate liquidity, often allowing premature withdrawal with a penalty; Corporate FDs may have longer lock-in, limiting access to funds.

Deposit Liquidity


Bank FD interest is taxed according to tax slab; Corporate FD interest is also taxable, but rates vary based on various factors.


Credit Rating

Banks lack credit ratings and are deemed safe due to government backing. However, higher-rated corporate FDs are considered safe investments.

Credit Ratings

Lock-In Period

Corporate FDs typically come with longer lock-in periods compared to bank FDs.

Compiled by Himani Verma


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