Corporate FD interest & returns: frequently asked questions
How is interest calculated?
Interest on corporate fixed deposits accrues daily at a fixed rate and the actual placement period. Returns are calculated on the principal amount and accumulate over time, resulting in a linear relationship between rate, tenor and income.
Simple vs compound interest
Sberbank India applies a simple interest model: accrued interest is not capitalised and does not generate additional income.
By contrast, compound interest increases the base for future accruals. While the difference is limited for short tenors, longer placements typically yield higher returns under compounding.
Companies may replicate compounding through deposit rollover with interest added to the principal.
When is interest paid?
Interest is paid at maturity together with the principal and credited automatically to the company’s current account.
Tax deducted at source (TDS), typically at 10%, is withheld by the bank, simplifying tax administration for clients.
Check rates and terms
Current rates, calculation principles and payout conditions are available on the Sberbank India fixed deposit page.
What happens at maturity?
At placement, companies select a maturity scenario:
The applicable rate for rollover is the one valid at the renewal date. The selected option affects both liquidity and the future tax base.