Fixed Deposit is the most popular investment choice in India. Like Banks, RBI permits selective corporate & NBFC to accept deposits for a fixed interest rate and tenure. Such deposits are called Company or Corporate Fixed Deposit.

In these times of high market volatility and uncertain returns, Corporate FDs help you secure your future financially with fixed, predictable returns. Investors can choose to earn regular income with pay-out option or accumulate capital through cumulative option.

One of the biggest advantages of investing in corporate Fixed Deposits is, like bank Fixed Deposits they also provide the assurance of a guaranteed return. Say you have invested Rs 1 lakh in a corporate Fixed Deposits and the concerned NBFC/corporate promises you to pay a 7 percent interest per annum. Then, no matter how the markets move or how the interest rates fluctuate, at the end of the year, you will receive Rs 1.07 lakh as promised.

Plus, at the time of investment itself, you get to know the exact amount that you will receive at maturity. This one big advantage helps you make your future financial plans more confidently.

Like most bank deposits, most corporate Fixed Deposits offer a little higher interest rate for senior citizens. For example, if a non-senior citizen earns a 6 percent return from a corporate Fixed Deposit, usually a senior citizen will get a 6+ percent on the same investment.

For senior citizens who are retired and depend on Fixed Deposit returns for income, this is an added advantage.

The tenure of a corporate Fixed Deposit usually ranges between one to five years. And you have the flexibility to choose any duration within that range. So if your goal is one year away, you can invest for one year; if it's 2.5 years away, you can choose your tenure accordingly. However, the interest rate will vary accordingly, i.e. higher the tenure, the higher is the interest rate.