Corporate Fixed Deposits are one of the many money raising tools for Companies. Through these, Companies raise money from the public and offer a fixed rate of interest for different tenures. The amount of money which can be raised is decided by the Approving authorities.
As a part of your portfolio, Corporate Fixed Deposits provide much needed stability in returns and also reduce volatility. They best suit investors who prefer fixed returns on their investments.
A fixed deposit 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.
A recurring deposit is a special kind of term deposit offered by banks which help people with regular incomes to deposit a fixed amount every month into their recurring deposit account and earn interest at the rate applicable to fixed deposits.