Corporate FD
Market basicsA fixed deposit with a company rather than a bank.
In plain terms
One to two percent more, and no deposit insurance. The extra is the price of credit risk.
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Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Deposit insurance
Regulation & taxStatutory cover protecting bank deposits up to a prescribed limit, written per depositor per bank rather than per account.
In plain terms
Bank FDs have it; corporate FDs, NCDs, credit societies and NBFC deposits have nothing equivalent, and that gap is most of the yield difference. Six accounts at one bank share one limit — the unit that multiplies the cover is the bank.