Fixed deposits are term deposits provided by banks and non-banking financial companies (NBFCs), which offer a pre-decided interest on the amount of money you invest, for a fixed period. Fixed deposits offered by NBFCs are known as Corporate FDs or Company FDs. FD interest rates vary per the tenor chosen by the depositor. They are the safest and most stable investment options that assure guaranteed and high returns, unlike other fixed-income instruments like savings accounts and post office fixed deposits.
Company fixed deposits are better than bank fixed deposits as they offer interest rates, which are significantly higher than bank fixed deposit interest rates. Bank FD rates are determined by a number of factors which might change per the interest rate movement decided by the Central Bank the Reserve Bank of India via the Repo rate the rate at which it lends to banks. However, you can be assured of high interest rates with company fixed deposits.
