Types of Inter-corporate Deposit (ICD)
(i) Call Deposits It is a deposit which can be withdrawn by the lender. The annual interest rate is 10%.
(ii) Three Months Deposit It is used to tackle short-term needs of funds such as payment of tax, payment of dividend, etc. The annual interest rate is around 12 %.
(iii) Six Months Deposit It is usually made with first class borrowers. The annual interest rate is around 15%.