How beneficial is corporate FD to you, how much is the risk; Know everything

New Delhi: Fixed Deposit (FD) will be the best investment option in the country. But apart from FDs, there are some options that can give you a lot more than that. One of them is investment in corporate or company FD. You will get 5 to 6% interest on investing in a bank. At the same time, you can earn more than 10% by investing in corporate FDs. However, this option is more risky than FD. Learn about this corporate FD.

Companies work to raise capital for their needs. Companies take capital from the investor for a fixed period of time, which is called corporate FD. Companies ask investors to invest through advertising. To attract investors, companies pay more interest on these FDs than banks and other finance companies. This is because these companies have the right to take deposits under company law. Companies have higher interest rates on corporate FDs, so it is better to invest in them.

How safe

The biggest reason why bank FDs are popular is that they are considered the safest for investment. The strict rules of the Reserve Bank are followed in bank FDs. If the bank goes bankrupt, the FD amount of up to Rs one lakh will be secured under the Deposit Insurance and Credit Guarantee Corporation.

Corporate fix deposits, on the other hand, do not have this type of protection. But this does not mean that your investment is risky. Whenever you invest in a company’s corporate FD, first check the credit rating of that company.

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