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Corporate Fixed Deposits are debt instruments issued directly by Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs) to raise funds from retail investors — at interest rates significantly higher than what scheduled banks offer. These are not bank deposits: unlike a bank FD, corporate FDs are not covered by the DICGC ₹5 lakh deposit insurance guarantee. This makes the credit rating of the issuer the single most important factor before you invest — only CRISIL AAA, ICRA AAA, or CARE AAA rated issuers provide the highest level of principal safety. Motilal Oswal operates as an AMFI/SEBI-registered distributor for corporate FDs, bringing issuers like Bajaj Finance (AAA/Stable), Shriram Finance (AA+/Stable), and PNB Housing Finance (AA/Stable) to a single digital platform. Interest income from corporate FDs is fully taxable as per your income tax slab — this is important when comparing effective post-tax yields.
Start with the credit rating — only invest in AAA or AA+ rated issuers. Then compare YTM, tenure, and payout frequency across Bajaj Finance, Shriram Finance, PNB Housing, and others listed on the MOSL platform.
Select tenure from 1 to 5 years based on when you need the money. Choose cumulative (compound interest, paid at maturity) or non-cumulative (monthly/quarterly/annual payouts) depending on whether you need regular income now.
Corporate FD interest is taxable at your slab rate. If you're in the 30% bracket, a 7.5% FD yields roughly 5.25% post-tax. Compare this against tax-free bonds or debt mutual funds to ensure you're choosing the right instrument.
Complete the application on the Motilal Oswal platform. Submit PAN and Aadhaar. No branch visit required. FD certificate is issued digitally within 2–3 working days. Senior citizens get an additional 0.25–0.50% on most issuers.
Interest is credited to your linked bank account per the chosen payout schedule. At maturity, principal + any remaining interest is credited automatically. Auto-renewal is available with most issuers.
Kolkata has one of India's deepest cultures of fixed-income investing — from post office deposits to bank FDs that have been renewed for decades in the same branch. That familiarity with capital safety is rational. What's often missed is the post-tax yield reality: if you're in the 30% slab, a bank FD at 7% earns you about 4.9% after tax. A CRISIL AAA-rated corporate FD at 8% earns roughly 5.6% post-tax — and if you ladder maturities across 1, 2, 3, and 5 years, you create a rolling liquidity schedule rather than locking everything in at one rate. Through Motilal Oswal's FD platform, Indexis clients compare rates across issuers in real time, apply digitally, and manage all FDs in one dashboard — alongside their equity, MF, and bond portfolios.
Open Free Account NowThe most important distinction most investors miss before investing in corporate FDs.
Rates are indicative and subject to change. Always verify current rates on the MOSL FD platform before investing.