Corporate FDs offer a slightly higher rate of return compared to bank FDs, but then they also entail a higher degree of risk. If the company that has issued the FD defaults on its interest and principal commitments then the loss is yours. Since, such company deposits are typically unsecured you will not have any means of recovering the amount deposited. Also in terms of tax treatment, company FDs are quite inefficient since the interest on company FDs is taxed at your peak rate.