By continuing, you agree to LoansJagat's Credit Report Terms of Use, Terms and Conditions, Privacy Policy, and authorize contact via Call, SMS, Email, or WhatsApp
Disclaimer: The information published on LoansJagat is intended for general informational and educational purposes only and should not be considered financial, legal, or investment advice. Interest rates, loan terms, statistics, and other data may change over time and may vary by lender or source. Please verify the latest information and consult a qualified financial advisor or the respective Bank/NBFC before making any financial decisions.
Apply for Loans Fast and Hassle-Free
Subscribe Now
About the author
LoansJagat Team
‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.
Related Blog Post
Simplify All Your Loans Into One Affordable EMI
Customers Served
Debt Consolidated
1200+ Reviews
Locations in India
Club all Loans & Credit Card Bills into Single EMI
Quick Apply Loan
Consolidate your debts into one easy EMI.
Takes less than 2 minutes. No paperwork.
10 Lakhs+
Trusted Customers
2000 Cr+
Loans Disbursed
4.7/5
Google Reviews
50+
Banks & NBFCs Offers
Other services mentioned in this article
Corporate fixed deposits are more lucrative than bank fixed deposits. Nevertheless, investors need to consider important factors such as the interest rate, credit risk, tax implications, liquidity needs, withdrawal penalties, and the absence of insurance.
Key Highlights
Corporate fixed deposit rates reached 8.95% per annum in June 2026, led by Muthoot Capital Services. The rate applied to a 36-month deposit for regular investors, while eligible senior citizens received an additional 0.25%, taking the return to 9.20%.
The comparison, published by Mint on June 22 using rates available on June 17, showed that selected NBFC and housing finance company deposits outpaced major bank FDs. Higher returns, however, bring issuer-level credit risk and no DICGC protection.
Muthoot Capital’s 8.95% was the highest listed rate, followed by Manipal Housing Finance at 8.25%. Among AAA-rated issuers, Can Fin Homes offered 7.50%, Mahindra Finance paid 7.45%, and Bajaj Finance offered 7.40%.
These are the highest rates reported in the June 17 comparison. Returns can vary by payout frequency, cumulative option and booking date.
Investors should also review the live Muthoot Capital Services rate card because monthly-income and annual schemes may carry different rates.
The illustration assumes a ₹1 lakh cumulative deposit with quarterly compounding. It excludes tax, TDS, premature withdrawal charges and issuer-specific rules.
*T&C Apply
₹1,21,162
At 8.95%, the indicative maturity amount is ₹9,252 higher than at 6.45%. That return partly compensates investors for lending directly to a corporate issuer instead of using an insured bank.
The State Bank of India listed 6.45% on its 444-day Amrit Vrishti deposit, while HDFC Bank offered around 6.50% across major retail tenures.
Against 6.45%, Muthoot Capital’s 8.95% creates a 250-basis-point gap. Manipal Housing Finance’s 8.25% creates a 180-basis-point difference, while Mahindra Finance’s 7.45% offers a 100-basis-point advantage.
The DICGC states that NBFC deposits are not covered by its insurance system. Eligible deposits with insured banks receive protection of up to ₹5 lakh per depositor per bank, including principal and interest.
The Reserve Bank of India states that only eligible deposit-taking NBFCs with the required investment-grade rating may accept public deposits. Investors should verify authorisation before transferring money.
Credit ratings indicate assessed repayment capacity but do not guarantee repayment. They can change if an issuer’s liquidity, capital position or asset quality weakens.
An 8.95% corporate FD may offer better returns, but locking the full ₹3 lakh for 36 months can restrict access during medical bills, school expenses or income loss. LoansJagat’s emergency fund guide also advises keeping emergency savings readily available.
A better approach is to retain part of the money in an insured bank FD and place only a smaller share in a highly rated corporate FD. Investors should also compare the latest credit rating, withdrawal penalty and post-tax return before applying.
Download the latest rate card, application form and rating letter from the issuer’s website. Confirm the applicable rate on the booking date and select a tenure linked to a defined expense. Emergency funds should not be locked into long corporate deposits.
Are corporate FDs insured by DICGC?
No. NBFC deposits do not receive DICGC bank deposit insurance.
Is an AAA-rated corporate FD completely safe?
No. AAA indicates strong assessed repayment capacity, not guaranteed repayment.
Is corporate FD interest taxable?
Yes. Interest is taxed according to the investor’s applicable slab.
Which FD should investors choose when Muthoot Capital offers 8.95% for 3 years?
Choose after comparing credit rating, liquidity, tax impact, and safer alternatives from established issuers first.
What is the best corporate fixed deposit in India for regular investors?
The best option combines competitive returns, strong ratings, flexible withdrawals, and reliable repayment history consistently.
Related News Updates | ||
.png&w=3840&q=75)
