What it is
A business fixed deposit holds a company's surplus cash for a fixed term at an agreed rate, paying interest monthly or at maturity. Banks often quote negotiated rates for larger corporate deposits, and deposits can secure loans or overdrafts.
Interest earned by companies is part of taxable income; withholding on deposit interest may apply depending on current rules — confirm the treatment for your entity with your accountant.
How to compare
Rate for your amount and tenure
Corporate rates are frequently negotiable above published rates for large sums.
Institution type and strength
Higher rates from finance companies come with higher risk; check licensing and ratings.
Interest payout
Monthly interest supports cash flow; maturity payout earns slightly more.
Early withdrawal terms
Breaking a deposit usually costs interest.
Use as security
A deposit can back an overdraft or guarantee at low cost.
What the bank will ask for
- Business registration and incorporation documents
- Board resolution authorising the deposit and signatories
- KYC for directors and beneficial owners
- Source-of-funds information for large deposits
Requirements vary by bank and facility size; this is the usual starting list.
Related business services
Business Cash Management
Collect, hold and pay money efficiently across accounts and branches — bulk payments, collections, sweeps and real-time visibility.
Business Current Accounts
The everyday account a business runs on — cheques, transfers, online banking — and how to pick one that fits your volume of transactions.
Working Capital Finance
Short-term finance that keeps day-to-day operations running — overdrafts, revolving loans and trade facilities — and how to choose between them.
Not sure which bank fits your business?
Send one enquiry; we'll come back with the options that match.