Corporate RD Calculator - Company Recurring Deposit Calculator

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

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Calculate Corporate RD Returns
Corporate RDs offer higher returns but carry credit risk. Only invest in AAA/AA+ rated NBFCs.
₹10,000
₹1,000₹1,00,000
8%
7%10%
24 Months
12 Months5 Years
Investment vs Interest
Total₹2,60,915
Total Investment
₹2,40,000
Interest Earned
₹20,915

Total Investment

₹2,40,000

Total Interest

₹20,915

Maturity Amount

₹2,60,915

Investment vs Interest8.0% interest earned
Investment
Interest

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What is Corporate RD?

Corporate Recurring Deposit is an RD scheme offered by NBFCs (Non-Banking Financial Companies) and corporates instead of traditional banks. These deposits typically offer 1-2% higher interest rates than bank RDs, making them attractive for investors seeking better returns on monthly savings.

Unlike bank RDs that are covered under DICGC insurance up to ₹5 lakhs, corporate RDs do not have deposit insurance. The safety of your investment depends entirely on the financial health and creditworthiness of the company. Always check credit ratings before investing.

How Corporate RD Interest is Calculated

Same compound interest formula as bank RDs, typically compounded quarterly. Higher interest rates result in significantly better returns over time.

Example Corporate RD Calculation

  • Monthly Deposit: ₹10,000
  • Interest Rate: 8% p.a. (vs 6.5% bank RD)
  • Tenure: 36 months
  • Corporate RD Maturity: ₹4,06,520
  • Bank RD Maturity: ₹3,97,023
  • Extra Returns: ₹9,497

Popular Corporate RD Providers

  • Bajaj Finance: AAA rated, RD rates up to 8.25%
  • Mahindra Finance: AAA rated, offers systematic deposit plan
  • Shriram Finance: AA+ rated, competitive rates
  • HDFC Ltd: AAA rated, reliable NBFC option

Benefits of Corporate RD

  • Higher Returns: 1-2% more than bank RDs
  • Monthly Saving Habit: Disciplined investment approach
  • Online Management: Easy tracking and management
  • Nomination Facility: Secure wealth transfer

Risks of Corporate RD

  • No Insurance: Not covered under DICGC
  • Credit Risk: Company default can cause loss
  • Liquidity Risk: Limited premature withdrawal options
  • Rating Changes: Downgrade increases risk

Limit corporate RD exposure to 20-30% of your total deposit portfolio and only invest in AAA or AA+ rated companies.

Frequently Asked Questions

Corporate RD from AAA-rated NBFCs like Bajaj Finance is relatively safe but not risk-free. Unlike bank RDs, there is no DICGC insurance. Always verify credit rating from CRISIL, ICRA, or CARE before investing. Avoid companies rated below AA.

Among safe options (AAA/AA+ rated), Bajaj Finance and Shriram Finance offer rates around 7.5-8.25%. Some lower-rated NBFCs offer 9-10% but carry higher risk. Always prioritize safety over returns.

Premature withdrawal policies vary by company. Many corporate RDs have lock-in periods or don't allow premature closure. Those that allow it charge 2-3% penalty. Check terms carefully before investing.

Yes, TDS at 10% is deducted if annual interest exceeds ₹5,000 (lower threshold than bank RDs). Interest is fully taxable as per your income slab. Submit Form 15G/15H to avoid TDS if income is below taxable limit.

Corporate RD involves monthly deposits while FD is a lump sum. RD suits regular savers, FD suits those with surplus funds. Interest rates are typically similar. Both carry similar credit risks from the issuing company.
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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Regular RD CalculatorCorporate FD CalculatorFD CalculatorSIP Calculator

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