Corporate Fixed Deposits (FDs) are investment options offered by companies to investors. They function similarly to traditional bank FDs but are provided by corporations for a fixed tenure at predetermined interest rates, which tend to be higher than those of banks. Corporate FDs are considered higher risk compared to bank FDs due to the absence of deposit insurance and the potential for default. Investors should carefully research the company's financial health, credit rating, and reputation before investing. While they offer attractive interest rates, potential risks make diversification and due diligence crucial.
