If you have a short-term financial goal such as saving for an international trip or buying a gift for your spouse, corporate fixed deposits can be a good investment option.
However, corporate FDs are not covered by the DICGC (deposit insurance of up to 5 lakh which is only available for Bank FDs). To overcome this concern, ensure you check the basic fundamentals of the company are strong and the company enjoys a good credit rating. If the credit rating by credible agencies is below average you must reconsider putting your money in that particular company and look for other reliable companies. It is ideal to invest in a high-rated corporate deposit with AAA or equivalent rating. It signifies the highest safety regarding the payment of interest and the principal. As you go lower in the rating chart, the degree of safety reduces.