These types of deposits are offered by corporate companies
Generally, banks are the issuers of fixed deposits services or products in India
But there are other non banking institutions that offer similar deposit products to investors. These corporate entities could be involved in various businesses & may require capital to fund their operations
In such scenario, they issue deposit certificates to the investors of different tenures at fixed interest rates
These types of deposits offer high interest rates than the ones offered by banking institutions. Hence, investors prefer to include corporate deposits in their investment portfolio
A well chosen corporate deposit scheme will yield great returns for an investor
Though these type of deposits offer higher interest rates, there is also a slightly higher risk associated with them. One must factor the credit risk of a company before investing
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