What are fixed deposits?

Usually, when you first start investing, you are advised to invest some amount in a fixed deposit. This is one of the most common investment options. A fixed deposit is an instrument where you invest money for a fixed period of time. You earn a fixed rate of return.

As much as 60% of the savings are being diverted into bank fixed deposits. However, interest rates on bank fixed deposits are not very high, especially with the inflation on a constant rise. Now, Investors can opt for a corporate fixed deposit.

Similar to bank deposits, companies too offer fixed deposits. This helps them raise funds for their operations. These deposits offer a higher rate of interest as compared to bank deposits. However, since the money is directly given to a corporate, the investors should ensure that they invest in deposits of reputed corporates only after due diligence on the repayment capacity of the company.

How fixed deposits work?

  • As part of a fixed deposit, banks and companies accept money from investors in exchange for an interest.
  • These are then locked away from a particular period of time.
  • The longer the period, the higher is the rate of interest. This is because the money is utilized by banks to offer loans with a higher interest rate. Similarly, companies use the money for internal operations. So, the longer the deposit term, the more stable are the funds. As a result, the rate of interest is higher.
  • When the FD matures, you get back your entire sum along with the interest.
  • This interest amount will then be paid to you on a regular basis, or at the end of the tenure.
Why Corporate fixed deposits?

  • Safe investment

  • Higher returns than bank fixed deposits

  • Flexible tenure

  • Rated by Credit Rating Agencies
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Which Corporate Fixed Deposits does Kotak Securities offer?

COMPANY'S NAME 1 YR 2 YRS 3YRS 5 YRS APPLY
BAJAJ FINANCE LIMITED   9.35(M) 9.35(M) 9.50(M) 9.35(M) Contact Me
9.35(Q) 9.35(Q) 9.50(Q) 9.35(Q)  
9.35(H) 9.35(H) 9.50(H) 9.35(H)  
9.75(Y) 9.75(Y) 10.00(Y) 9.75(Y)
DEEWAN HOUSING FIN. LTD

(Aashray Deposits)

(Non Cumulative)   
9.80(M) 9.80(M) 9.80(M) 9.80(M) Contact Me
9.88(Q) 9.88(Q) 9.88(Q) 9.88(Q)  
10.00(H) 10.00(H) 10.00(H) 10.00(H)  
10.25(Y) 10.25(Y) 10.25(Y) 10.25(Y)  
DEEWAN HOUSING FIN. LTD

(Swayam Sidha Deposits)

(For Woman only)      
For 500 Days       Contact Me
9.80(M)        
9.88(Q)        
10.00(H)        
10.25(Y)        
HDFC LIMITED

(Max. Limit: < Rs 1 crore)   
8.90(M) 8.90(M) 8.90(M) 8.65(M) Contact Me
8.95(Q) 8.95(Q) 8.95(Q) 8.70(Q)  
9.05(H) 9.05(H) 9.05(H) 8.80(H)  
  9.25(Y) 9.25(Y) 9.00(Y)  
LIC HOUSING FINANCE LTD  9.00 9.00(18 Months) 9.40 9.60 Contact Me
  9.25(24 Months)      
MAHINDRA & MAHINDRA FINANCE SERV LTD  8.90(Q) 9.65(Q) 9.90(Q) 9.40(Q) Contact Me
9.00(H) 9.75(H) 10.00(H) 9.50(H)  
SHRIRAM TRANS FINANCE CO. LTD (UNNATI)

Max Limit: < Rs 10 crore 
8.95(Q) 9.41(Q) 10.34(Q) 10.34(Q) Contact Me
9.25(Y) 9.75(Y) 10.75(Y) 10.75(Y)  
9.05(H) 9.52(H) 10.47(H) 10.47(H)  

Note: For queries & feedback you can e-mail us at company.fd@kotak.com

Disclaimer: The fixed deposits list is not comprehensive but contains few Fixed Deposits currently available for Public. Investors should read the fixed deposit application forms before applying for the same. Please note that the above mentioned rates & structure are subjected to change without any prior notice.

What are the benefits?

  • Safe: Fixed deposits are considered to be one of the safest investment options. This is because they are not affected by the fluctuations in the market. Also, the rate of return is fixed right at the start.
  • Tenure: Your deposits can be locked for different periods. The longer the tenure, the higher the interest rate. Flexible tenure ranging from one year to seven years gives you an option to choose a tenure that fits your financial goals.
  • Returns: Corporate fixed deposits give higher returns as compared to bank fixed deposits. This makes them a lucrative investment option.
  • Senior citizen: Higher interest rates are offered for senior citizens.
  • Liquidity: Yes, the money in a fixed deposit is locked away from a certain period of time. But, you can break the deposit if and when required. However, pre-mature withdrawal lowers the rate of interest.
  • Power of compounding: Reinvesting the interest amount enables you to earn additional returns on your investments.
  • Secondary income: Investors have the option of choosing the frequency of interest payments. This can be on a monthly, quarterly, half-yearly, annual or cumulative basis. This can act as a regular additional source of income.