Fixed Deposits that are issued by the private/public companies are known as Company/Corporate Fixed Deposits. The interest given by the companies on fixed deposits varies from company to company. The risk is associated with the interest. Higher the risk, higher the chances of default.

Company deposits are issued by NBFCs and manufacturing firms. Issuing such deposits is one of the ways a company raises funds, and over the past few years many have used this route. These deposits are basically unsecured loans that do not guarantee anything to the investor in case of a default. It is because of this risk that these deposits come with higher interest rates compared with bank FDs. And it is the higher interest rate that attracts many retail investors, especially senior citizens, to company deposits.