Corporate FD
What Is a Corporate FD?
A Corporate FD is a deposit placed with a company (NBFC or corporate entity) for a fixed tenure at a predetermined interest rate. Unlike bank deposits, these are not backed by deposit insurance, which makes credit assessment critical.
Corporate FDs may play a role in a portfolio for investors who:
Seek predictable income
Want higher yields than bank FDs
Prefer fixed returns over market volatility
 Are allocating to the debt portion of their asset mix
But the objective is income stability, not speculation.
A disciplined approach also requires diversification. Even strong companies can face unexpected challenges. Spreading exposure, aligning investment tenures with financial goals, and avoiding concentration in a single issuer or group helps ensure that fixed income serves its purpose to provide stability rather than introduce avoidable stress.