What Are Corporate Deposits?

  • 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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