Bank FD vs Corporate FD Calculator
The extra rate is a credit-risk premium, not free money
FD vs Corporate FD Comparator
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Years
Months
Days
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Bank FD post-tax maturity
0
DICGC-insured up to ₹5 lakh per bank
Corporate FD post-tax maturity
0
not deposit-insured, carries issuer credit risk
Extra return for taking the credit risk
0
In today's money (inflation-adjusted)
0
real purchasing power after assumed inflation
The rate gap IS the risk premium, not free money
A corporate FD pays more precisely because you're taking on the issuing company's credit risk instead of a bank's — check the credit rating (AAA is safest, anything below A should give real pause) before treating the extra return as a free upgrade.
DICGC insurance is bank-FD-only, and capped
Bank FDs are insured up to ₹5 lakh per depositor per bank (principal plus interest combined) by DICGC — corporate FDs carry no such government-backed insurance at all; if the issuer defaults, recovery depends entirely on the company's own solvency.
Liquidity is usually worse too
Corporate FDs often have stricter premature-withdrawal penalties and lower liquidity than bank FDs — factor in whether you might need this money early, not just the headline rate.
Both modeled with quarterly compounding at their respective rates, taxed at your slab rate on maturity. Corporate FD rates vary significantly by issuer credit rating (AAA-rated corporate FDs typically pay a smaller premium over bank FDs than lower-rated ones) — the rate used here is illustrative, not tied to a specific issuer. Not investment advice; check the actual credit rating and DICGC coverage details before choosing either.