Corporate fixed deposits are issued by NBFCs, HFCs and other financial institutions. Their interest rates are usually higher than bank fixed deposits and stay fixed throughout the booked term. However, unlike fixed deposits opened with scheduled banks, corporate fixed deposits are not covered under any deposit insurance cover. Hence, investors with lower risk appetite should prefer corporate fixed deposits offered by the companies with AAA ratings. Note that, like bank fixed deposits, corporate fixed deposits charge a premature withdrawal fee and their interest incomes are taxed as per the tax slab of the depositor.