Who Offers a Better Fixed Deposit – Banks or Corporates?

Investors rely on an investment option to reap the rewards and grow financially. A Fixed Deposit (FD) account from a bank offers you safety and reliability but lacks the growth that new-age investors are aiming for. A corporate fixed deposit account comes as a profit-making package. Besides, opening a fixed deposit with a corporate-like Shriram offers growth at a fast pace and helps you double your money quickly.

A fixed deposit is the safest and most reliable investment option that allows investors to open and close an account at their convenience. It offers quick liquidity to help investors access their FD amount at the end of maturity or before maturity via premature withdrawals. Although banks and NBFCs (Non-Banking Financial Companies) allow premature withdrawal, it is not advisable for investors because premature withdrawal attracts a small percentage as a penalty. However, closing a fixed deposit after maturity will yield you the fullest benefits of an FD.

Introduction to a Fixed Deposit

A fixed deposit is an investment that includes depositing a considerable sum of money into an FD account at a financial institution of your choice. The tenure of a fixed deposit investment usually ranges between 7 days - 10 years, and the deposit amount also varies depending on the banks and NBFCs. Besides, a fixed deposit is a better way to grow your savings over time while also enjoying the power of liquidity.

Bank FD vs Corporate FD

Banks and NBFCs are the two common financial institutions that allow investors to open a fixed deposit account. Although banks and NBFCs offer similar benefits like saving investors’ money and lending loans, there is a significant difference between them. Let’s now take a detailed look at the difference between a bank and a corporate fixed deposit;

How to Open a Corporate Fixed Deposit?

You can open a corporate fixed deposit account in two quick ways. They are;

Online Corporate Fixed Deposit Account Opening

Investors can open a corporate fixed deposit account online by simply visiting the official website of the NBFC they are interested in. With technological advancements, the process is simple and hassle-free. But, when you want to open an FD account with an NBFC like Shriram, you should use a fixed deposit calculator to find the exact maturity amount and the interest rate offered by the NBFC.

Below is a quick guide to opening a corporate fixed deposit account online.

•Create a new login ID or use an existing login ID to enter the NBFC portal.

•Choose “Open Fixed Deposit Account” from the menu available in the portal.

•Add details like principal amount, tenure and nominee details to open a corporate FD. 

•Submit your address and identity proof, and complete your KYC (Know Your Customer) verification. 

•Use your net banking to deposit the principal amount into your newly opened fixed deposit account with the NBFC.

•Upon deposit confirmation, download the fixed deposit certificate for records. 

Offline Corporate Fixed Deposit Account Opening

Opening an account by walking into an NBFC is a cakewalk if you know how an NBFC works in 2022. Although opening a corporate FD account offline is traditional, the process is swift. Here is a step-by-step guide to opening a corporate fixed deposit offline. 

• Visit the branch and fill out the FD account opening application form. 

• Submit address and identity proof to complete your KYC (Know Your Customer).

• Upon KYC verification, you can deposit cash into your newly opened fixed deposit account. 

Open a Corporate FD with Shriram Now!

Opening a corporate fixed deposit is easier than choosing the right NBFC for investment. So, research and compare the interest rates and safety ratings to finalise your NBFC for investment. Renowned NBFCs like Shriram guarantee good returns and offer attractive interest rates on an FD. Besides, you can easily choose the best tenure according to your convenience and book Shriram’s Fixed Deposit.

Key Highlights

• Investors rely on an investment option to reap the rewards and grow financially.

• A fixed deposit account from a bank offers you safety and reliability but lacks the growth new-age investors are aiming for. 

• A corporate fixed deposit account comes as a profit-making package.

• Opening a corporate fixed deposit with Shriram offers growth at a fast pace and helps you double your money quickly.