What are the risks of investing in small finance bank & corporate FDs?

Small finance bank FDs and corporate FDs may offer higher interest rates, but they carry different risks. Small finance bank FDs are RBI-regulated and covered by DICGC insurance up to ₹5 lakh/depositor per bank, while amounts above the limit remain exposed to the bank's financial position. Corporate FDs have no DICGC cover, making repayment dependent on the issuer's financial strength.