Corporate FDs have higher risk than bank FDs, but companies have higher interest rates on corporate FDs, so it is better to invest in them.
Fixed deposit (FD) will probably be the best investment option in the country. One of them is investment in corporate or company FD. You will get 5 to 6% interest on investing in the bank. At the same time, you can earn more than 10% by investing in corporate FD. 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 an investor for a fixed period, which is called corporate FD. Companies ask investors to invest through advertisements.. Companies have a higher interest rate on corporate FDs, so it is better to invest in it.
The biggest reason for bank FD being popular is that it is considered the safest for investment.
Whenever you invest in corporate FD of a company, first of all check the credit rating of that company.
If you are thinking of taking corporate FD then these things should be kept in mind: –
If you want to take risk, then choose Corporate FD option
Invest only in a company with a high credit rating
If companies with AAA or AA rating are making FD offers then they can be invested.
Before investing in corporate FD, see the record of 10-20 years of that company.
Keep in mind that bank and company deposits are taxed according to the slab of income tax the investor comes in. Under the Income Tax Act 1961, if the interest on a bank FD exceeds Rs 10,000 in a year, then tax deduction (TDS) is made at the source. Its limit in company FD is Rs 5,000.
Nidhi Malviya is fun loving girl. She writes at NoobFeeds about various topics related to Finance, Technology, Business etc.