Corporate Deposits

Corporate deposits from NBFCs and corporates typically pay 1–3% more than bank FDs over 1–5 year tenures — but the credit risk varies widely across issuers. Our job is to find the ones worth trusting.

• Hand-picked deposits from high credit-rated NBFCs and corporates with strong financials.
• Yield comparison across issuers, tenures, and payout structures (cumulative vs. periodic).
• Guidance on diversification to avoid over-concentration in any single issuer or group.

Corporate deposits do not carry DICGC insurance. There is no ₹5 lakh safety net, and no central bank standing behind the issuer. The rating is your first — and often only — line of defence. We treat it that way.

• Independent review of CRISIL and ICRA ratings — and where the rating sits within its band.
• Assessment of the issuer's financial strength, business model, and liability profile beyond the headline rating.
• Ongoing monitoring for rating downgrades and early-warning signals on credit quality.

Corporate deposits are typically issued for 1–5 year tenures, with cumulative or periodic payout options. Choosing the right combination is often worth more than chasing the last 25 bps of headline yield.

• Tenure matching against your cash-flow calendar and reinvestment plans.
• Cumulative vs. periodic payout comparison — with post-tax yield worked out for your bracket.
• Laddering across issuers and maturities for steady income and reduced reinvestment risk.

This is the single most misunderstood feature of corporate deposits: they are not covered by the DICGC's ₹5 lakh insurance that protects bank deposits. If the issuer defaults, recovery depends entirely on the issuer's ability to pay and the legal standing of depositors.

• Clear disclosure that corporate deposits sit outside DICGC protection — before you commit, not after.
• Explanation of what happens on default and how depositor claims are ranked against other creditors.
• Honest calibration of the yield premium against the true level of risk being accepted.

Higher yield is not free money — it is compensation for accepting more risk. Our role is to make sure the extra 1–3% is priced correctly against the credit quality of the issuer, not just compared against a bank FD.

• Yield spread analysis — separating the portion earned for credit risk from the portion earned for tenure and illiquidity.
• Comparison against alternatives — bank FDs, bonds, and small savings — on a like-for-like post-tax basis.
• Clear articulation of when a corporate deposit is the right answer — and when it is not.

Interest from corporate deposits is taxed at your slab rate — so the headline yield is rarely what you actually keep. Comparing post-tax returns is the only honest way to decide between a corporate deposit and other income options.

• Post-tax yield computation based on your actual income tax slab.
• Comparison against tax-efficient alternatives such as tax-free bonds and debt funds.
• Coordination with your tax advisor on TDS, interest reporting, and advance tax implications.

Corporate deposits are illiquid in practice. Premature withdrawal is usually restricted, penalised, or simply not permitted — and there is no secondary market where you can sell the deposit to someone else.

• Upfront disclosure of premature withdrawal terms, lock-ins, and any applicable penalties.
• Position sizing that respects the illiquidity — no over-commitment to any single issuer or tenure.
• Staggered maturity planning so capital returns when you actually need it, not just when the term ends.