Company Fixed Deposits
Deposits with NBFCs and housing finance companies, typically paying more than a bank fixed deposit. The rate is known at the outset and does not move with the market.
What this actually does for you
The concrete benefits, without the sales language.
The return is known before you invest
Unlike any market-linked product, you know the rate, the tenure and the maturity amount on day one.
Usually higher than bank deposit rates
NBFC and housing finance deposits generally pay more than banks for a comparable tenure, which is the compensation for taking on more credit risk.
Choice of payout frequency
Monthly, quarterly, annual or cumulative. Useful when the deposit is intended to produce regular income.
Higher rates for senior citizens
Most issuers add a margin for depositors above a defined age, which makes these deposits particularly relevant after retirement.
Honestly, who should and shouldn’t
Most sites only show you the left column. The right one matters just as much.
This is for you if
- You want a known return with no market exposure
- You are at or near retirement and need predictable income
- You are parking money for a goal one to five years away
- You want to balance an equity-heavy portfolio with something stable
- You accept a slightly higher credit risk in exchange for a higher rate
This isn’t for you if
- You need to be able to withdraw at any moment — premature withdrawal carries penalties and is sometimes restricted
- You are in a high tax bracket and have better post-tax options; interest is taxed at your slab rate
- You are chasing the highest advertised rate without checking the issuer's credit rating
- Your horizon is ten years or more and you can tolerate market movement — equity has historically done more over such periods
- You are putting your entire savings with a single issuer
When this belongs in your plan
The same band appears on every product page, so you can compare three products at a glance.
Starting Out
Long horizon at this stage usually favours growth assets over fixed returns.
Building
Useful only for short-dated goals; the bulk should be working harder.
Consolidating
Becomes genuinely useful. Moving completed goals out of equity into known returns.
Second Innings
Core holding. Predictable income, senior citizen rates, and no market anxiety.
5 steps
What actually happens, in order.
Check the credit rating
The rating agencies' view of the issuer matters more than the headline rate. We only place deposits with rated issuers.
Choose tenure and payout
Cumulative if you want growth, periodic payout if you want income.
Spread across issuers
Rather than the entire amount with whoever pays most, we spread it.
Complete the application and KYC
Straightforward, usually a few days.
Set a maturity reminder
Deposits that auto-renew at a lower rate are a common and avoidable loss.
Read this before you commit
The things a sales conversation tends to skip.
These are not bank deposits and are not insured like them
Deposit insurance that applies to bank deposits does not apply here. Your protection is the issuer's creditworthiness, which is why the rating matters.
Credit risk is real
A company deposit depends entirely on the company remaining able to pay. Higher advertised rates usually signal higher risk, not generosity.
Interest is taxed at your slab rate
For someone in a high bracket, the post-tax return may be lower than the headline rate suggests. TDS may also apply.
Premature withdrawal is penalised and sometimes barred
Many issuers impose a lock-in period during which withdrawal is not permitted at all.
Rates change; published figures go stale
Any rate shown anywhere, including on this site, must be confirmed at the time of investment.
Do not concentrate in one issuer
Spreading across several rated issuers costs nothing and materially reduces the risk.
Common questions
How is this different from a bank FD?
The issuer is a finance company rather than a bank, the rate is usually higher, and the deposit insurance that applies to bank deposits does not apply here. You are taking on the issuer's credit risk.
Which companies do you place deposits with?
We work with rated NBFC and housing finance issuers. The specific list and current rates are confirmed at the time of investment, since both change.
Is the interest taxable?
Yes, at your income tax slab rate. TDS may be deducted by the issuer above defined thresholds.
Can I withdraw early?
Usually after a minimum lock-in and with a penalty on the rate. Terms vary by issuer, so check before committing.
What happens at maturity?
You can withdraw or renew. Watch this date — deposits that auto-renew at whatever rate applies then are a common way to lose money quietly.
Ask about fixed deposits
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