A Company fixed deposit (FD) is a financial instrument provided by banks or NBFCs which provides investors a higher rate of interest than a regular savings account, until the given maturity date. It may or may not require the creation of a separate account.

Fixed deposits are a high-interest -yielding Term deposit and offered by banks across the world. The most popular form of Term deposits are Fixed Deposits, while other forms of term Deposits are Recurring Deposit and Flexi Fixed Deposits (the latter is actually a combination of Demand deposit and Fixed deposit)

Company fixed deposits (FDs) are a very popular investment option amongst senior citizen investors as they give them assured returns, which are generally 1% to 3% higher than the interest rates being offered by banks for similar periods. There are many company fixed deposit schemes which have an option to pay interest at monthly or quarterly intervals, and investors find it quite attractive to supplement their regular income from pension etc.

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