Corporate FD Calculator - Company Fixed Deposit Returns

Calculate corporate fixed deposit returns with higher interest rates. Compare company FD returns with accurate maturity calculations in India.

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Calculate Corporate FD Returns
Corporate FDs offer higher returns but carry credit risk. Only invest in AAA/AA+ rated companies.
₹1,00,000
₹10,000₹50 Lakhs
8%
6%10%
3 Years
1 Year5 Years
Principal vs Interest
Total₹1,25,971
Principal Amount
₹1,00,000
Interest Earned
₹25,971

Principal Amount

₹1,00,000

Total Interest

₹25,971

Maturity Amount

₹1,25,971

Principal vs Interest20.6% interest earned
Principal
Interest

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What is Corporate FD?

Corporate Fixed Deposit, also known as Company FD, is a term deposit offered by NBFCs (Non-Banking Financial Companies) and corporates rather than banks. These FDs typically offer 1-2% higher interest rates compared to bank FDs, making them attractive for investors seeking better returns.

Unlike bank FDs that are insured up to ₹5 lakhs by DICGC, corporate FDs do not have deposit insurance. Therefore, the safety of your investment depends on the financial health and credit rating of the company offering the FD. Only invest in FDs from companies with AAA or AA+ credit ratings.

How Corporate FD Interest is Calculated

A = P × (1 + r/n)^(n×t)

Same compound interest formula as bank FDs, but with higher interest rates.

Example Corporate FD Calculation

  • Principal: ₹5,00,000
  • Interest Rate: 8.25% p.a.
  • Tenure: 3 years
  • Corporate FD Maturity: ₹6,35,877
  • Bank FD (7%) Maturity: ₹6,12,520
  • Extra Benefit: ₹23,357

Popular Corporate FD Providers in India

  • Bajaj Finance: AAA rated, offers up to 8.25%, trusted NBFC
  • Mahindra Finance: AAA rated, competitive rates for various tenures
  • Shriram Transport: AA+ rated, higher rates for longer tenures
  • HDFC Ltd: AAA rated, one of the safest corporate FDs
  • LIC Housing Finance: AAA rated, government-backed parent company

Benefits of Corporate FD

  • Higher Returns: 1-2% more interest than bank FDs
  • Flexible Tenure: Options from 12 months to 60 months
  • Monthly Income: Non-cumulative option for regular income
  • Online Investment: Easy online application process
  • Loan Against FD: Most companies offer loan up to 75% of FD value

Risks of Corporate FD

  • No Insurance: Not covered under DICGC like bank FDs
  • Credit Risk: Company default can lead to loss of capital
  • Liquidity Risk: Premature withdrawal may not be allowed or attract heavy penalty
  • Rating Changes: Company rating downgrade increases risk

To minimize risk, only invest in AAA or AA+ rated corporate FDs and limit exposure to 20-30% of your total FD portfolio.

Frequently Asked Questions

Corporate FDs from AAA-rated companies like Bajaj Finance and HDFC Ltd are relatively safe but not risk-free. Unlike bank FDs, they are not insured by DICGC. Always check credit ratings from CRISIL, ICRA, or CARE before investing. Avoid FDs rated below AA.

Among safe options, Shriram Transport Finance offers around 8.5% for longer tenures. Bajaj Finance offers up to 8.25%. Some lower-rated NBFCs offer 9-10% but carry higher risk. Always prioritize safety (AAA/AA+ rating) over returns.

If a company defaults on FD payments, investors become unsecured creditors. Recovery depends on company assets and insolvency proceedings, which can take years. This is why credit rating is crucial - AAA-rated companies have extremely low default probability.

Yes, TDS of 10% is deducted if annual interest exceeds ₹5,000 (not ₹40,000 like bank FDs). Submit Form 15G/15H to avoid TDS if your income is below taxable limit. Corporate FD interest is fully taxable as per your income slab.

Premature withdrawal policies vary by company. Many corporate FDs have lock-in periods or don't allow premature withdrawal. Those that allow charge 2-3% penalty. Read terms carefully before investing if you may need liquidity.
Disclaimer

This calculator is provided for informational purposes only. The results are estimates and should not be considered as financial advice. Actual values may vary based on various factors. Please consult a certified financial advisor before making any financial decisions.

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