Bank FD vs Corporate FD: Which One Should You Pick for Safer, Better Returns?

Fixed Deposits (FDs) are among the most trusted investment options in India. But when choosing between a Bank FD and a Corporate FD, the decision can be confusing. While both offer fixed returns, the risk, interest rates, and regulation vary significantly.

This guide simplifies the comparison—so you can make a smart, risk-adjusted choice for your money.

What is a Bank Fixed Deposit?

A Bank FD is a secure investment where you deposit a lump sum amount with a commercial bank for a set tenure, earning interest at a predetermined rate.

Key features:

• Regulated by the Reserve Bank of India (RBI)
• Deposits up to Rs. 5 lakh are insured by DICGC
• Ideal for conservative investors seeking stable returns
• Premature withdrawal facility is often available

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Topic	Mandatory/ Optional	Char Limit	Content to update on page
Heading Text	Mandatory	90 Char	Highest Credit Ratings | Trusted with 1.4 million Deposits | Assured Returns on FD
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Value		10	Up to 8.60% p.a.
Title 2 (Min. Deposit) R1	Mandatory	17 Char	Flexible Tenure
Value		10	12-60 months
Title 3 (Min. Tenor) R1	Mandatory	17 Char	Deposit Amount
Value		10	Rs. 15,000 to %$$FDMAXmaxdepositFD$$%
Nudge 2	Mandatory		Only on Website and App
Title 1 (Rate of Interest) R1	Mandatory	17 Char	Bajaj Finance Digital FD*
Value		10	Up to 7.30% p.a.
Title 2 (Min. Deposit) R1	Mandatory	17 Char	Tenure
Value		10	60 months
Title 3 (Min. Tenor) R1	Mandatory	17 Char	Deposit Amount
Value		10	Rs. 15,000 to Rs. 3 cr
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Title 3 (Senior Citizen) R2	Mandatory	17 Char	Interest Rate*
Value		10	Up to 8.25% p.a.
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Value			12-60 months
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Value			Rs. 15,000 to Rs. 3 cr
Title 1 (Rate of Interest) R1	Mandatory	17 Char	Bajaj Finance FD Max
Value		10	Up to 8.60% p.a.
Title 2 (Min. Deposit) R1	Mandatory	17 Char	Flexible Tenure
Value		10	12-60 months
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Value		10	Rs. 15,000 to $$FDMAXmaxdepositFD$$%
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What is a Corporate Fixed Deposit?

A Corporate FD is offered by NBFCs or companies to raise funds from the public. These typically offer higher interest rates than bank FDs but come with a slightly higher credit risk.

Key features:

• Regulated under the Companies Act and SEBI
• Interest rates (based on credit rating)
• Rated by agencies like CRISIL or ICRA
• Suitable for investors with a moderate risk appetite

Want capital safety and peace of mind?Open an FD Account online with Bajaj Finance and start earning assured returns of up to 7.30% p.a. today!

Bank FD vs Corporate FD: A Quick Comparison

Feature	Bank FD	Corporate FD
Issuer	Commercial Banks	NBFCs/Companies
Safety	High – RBI regulated	Moderate – Based on credit ratings
Returns	~5% to 8% p.a.	Up to ~8.6% p.a.
Liquidity	High – Early withdrawals allowed	High – Early withdrawals allowed
Best For	Risk-averse investors	Risk-averse and yield-seeking investors

Unsure which FD tenure is right for you?Use our FD Calculator to compare returns according the chosen tenures by Bajaj Finance in real time. Book a AAA rated Bajaj Finance FD as per your requirement!

Benefits of Bank FDs

• Low-risk and predictable returns
• Deposits insured up to Rs. 5 lakh
• Flexible tenure options with early withdrawal (with some penalty charges)
• Easy to open and manage online or offline

Perfect for:

• Retired individuals
• First-time investors
• Emergency fund parking

Benefits of Corporate FDs

• Higher interest rates than traditional bank FDs
• Flexibility in tenure selection (1–5+ years)
• Suitable for portfolio diversification
• Backed by independent credit ratings. For example, Bajaj Finance FDs are AAA rated by CRISIL and ICRA (highest ratings in the market)

Perfect for:

• Professionals saving for short/medium-term goals
• Investors looking to beat inflation with fixed returns
• Those comfortable with minimal risk for better gains

Want more from your FD?Check Eligibility for Bajaj Finance AAA rated Fixed Deposits and take the next step towards building a safe financial future.

Component – Fixed deposit variants:-

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Heading Text <H2>			Fixed deposit variants
Description text			Highest Credit Ratings | Trusted with over 1.4 million Deposits | Assured Returns on FD
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Text 1	Mandatory		FD Max
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CTA	Mandatory		Invest Online
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Text 3			60 months
Subheading	Mandatory		INTEREST RATES UP TO 7.30% p.a.
CTA Text	Mandatory		Open FD
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CTA Text	Mandatory		Open FD
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Subheading	Mandatory		INTEREST RATES UP TO 7.30% p.a.
CTA Text	Mandatory		Open FD
CTA Link	Mandatory		https://www.bajajfinserv.in/investments/fixed-deposit
Text 6	Mandatory		FD – Special Tenure
Subheading	Mandatory		INTEREST RATES UP TO 7.30% p.a.
CTA Text	Mandatory		Open FD
CTA Link	Mandatory		https://www.bajajfinserv.in/investments/fixed-deposit
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Also Read: Reasons why Corporate FDs are safe investment

Conclusion

Both Bank FDs and Corporate FDs can be valuable additions to your financial portfolio—but they serve different needs.

• If your priority is capital safety, bank FDs work best.
• If you're looking for higher returns, corporate FDs offer great value.
• The smartest approach? Diversify between both, based on your goals.

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