What is a Corporate Fixed Deposit?
A Corporate Fixed Deposit (CFD) is a term deposit placed by investors with Non-Banking Financial Companies (NBFCs) or Housing Finance Companies (HFCs) for a fixed tenure at a pre-determined rate of interest.
Because they are issued by corporate institutions rather than commercial banks, they typically offer competitive interest rates, making them an option for investors looking to diversify their fixed-income portfolio.
- Interest Yields: Generally offer alternative interest yields compared to standard commercial bank fixed deposits.
- Independent Ratings: Issued by companies that are evaluated and rated by independent agencies like CRISIL, ICRA, and CARE.
- Flexible Payouts: Choose between cumulative options (compounded) or non-cumulative periodic payouts (monthly, quarterly, annual).
- Senior Citizen Benefit: Most corporate issuers offer additional interest rate benefits for senior citizens upon verification.
Understanding Credit Ratings
Corporate FDs rely entirely on the financial strength of the issuing institution. We distribute products based on ratings provided by SEBI-registered Credit Rating Agencies.
- AAA Rating: Indicates the highest degree of safety regarding timely servicing of financial obligations and lowest credit risk as per the rating agency.
- AA Rating: Indicates a high degree of safety regarding timely servicing of financial obligations with very low credit risk.
- A Rating: Indicates adequate safety parameters, though slightly more susceptible to changing economic conditions.
How Chamunda Investment Services LLP helps you
We act as a financial distributor, connecting you with Corporate Fixed Deposit schemes from established NBFCs and financial institutions.
- Product Discovery We provide you with the current interest rates, tenures, and official credit ratings across multiple corporate issuers.
- Operational Support Seamless processing of application forms, KYC requirements, and deposit submissions to the issuer.
- Maturity Tracking Timely reminders and administrative support regarding deposit maturity or reinvestment options.
