Company Fixed Deposit (corporate FD) is a term deposit which is held over fixed period at fixed rates of interest. Company Fixed Deposits are offered by Financial and Non-Banking financial companies (NBFCs). The maturities of various company fixed deposits can range from a few months to a few years.
The most important difference between the Corporate FD and Bank FD is that corporate FDs offer high rates of interest whereas Bank FDs offer low rates of interest to their customers. The penalty period for early withdrawal is lower as compared to Bank FDs.