A Corporate Fixed Deposit (FD) is similar to a bank FD but instead of depositing your money with a bank, you lend your money to corporations or non-banking institutions. In a corporate FD, you choose an issuer based on their credit rating and track record and decide your investment amount and period. The issuer on its part pays you a fixed interest rate for the duration of the fixed deposit at predetermined intervals. The interest can either be in the form of simple interest or compound interest. Similar to a bank fixed deposit, you get your principal amount and accrued interest if any at the time of maturity.