Corporate fixed deposits: FAQ for Indian companies
Can a private limited company open a fixed deposit?
Yes. Corporate fixed deposits are available to legal entities, including private limited companies. To do so, it is necessary to maintain a current account in Indian rupees with Sberbank India.
What is the minimum amount?
There is no fixed minimum, as terms depend on the deal structure. However, for placements via online banking, deposits typically range from ₹1 million to ₹100 million, with a maximum tenor of up to one year. Deposits opened through the branch are not subject to these limits and can be structured individually. Preferential rates (up to 7% p.a.) are generally available for larger placements, typically in the range of ₹25—100 crore.
Learn more
Explore detailed terms, current rates and placement options on the Sberbank India fixed deposit page.
Is interest taxable?
Interest income is subject to tax deducted at source (TDS) at 10%. The bank withholds and remits the tax as an agent. Any exemptions must be documented in advance.
Can a fixed deposit be broken early?
Early withdrawal is possible but affects returns. Interest is recalculated at a lower rate, often with an additional penalty of around 1 percentage point. Early withdrawal is possible but affects returns. Interest is recalculated at a lower rate, often with an additional penalty of around 1 percentage point. If a deposit is pledged as collateral, it may also be used as a source of repayment for the secured obligations, subject to the applicable agreement terms.
Can a fixed deposit be used as collateral?
Yes. Fixed deposits can serve as collateral for credit facilities, including trade finance and letters of credit, allowing companies to maintain liquidity while supporting transactions.
Is a fixed deposit safe for corporates?
Sberbank India operates under the regulation of the Reserve Bank of India (RBI) and complies with all applicable banking and deposit protection standards.