Company fixed deposits give higher returns, but come with their own risks

If you want to stick with FDs, but don't particularly like the low rates offered by banks, a corporate FD might just be the ticket for you

Did you know that some private companies also offer fixed deposits (FDs), just like a bank does, but with a higher interest rate? So, if you want to boost your returns by 1-2 percentage points, a corporate FD is a good option to consider. Look up the table by Paisabazaar to know which corporate offers the best rate for your chosen tenure. The table also mentions the credit rating of each FD, allowing you to make a more reasoned choice. However, one needs to consider the risks. For example, if the issuer runs into financial trouble, it may not be able to honour its obligations. Also, defaults are not covered by deposit insurance. Some corporate FDs may also impose restrictions on early withdrawals, or charge a penalty on them.