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Companies mostly beat large banks on FD returns, face competition from SFBs

However, corporate deposits are generally riskier than those offered by large bans; debt funds offer attractive returns in above 3-year tenure

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Large commercial banks are reasonably safe with public-sector banks scoring over private-sector banks. Corporate FDs carry higher risk than bank FDs

Bindisha SarangSanjay Kumar Singh Mumbai/New Delhi
Returns offered by corporate fixed deposits (FDs) have moved up during the ongoing rate-hike cycle in tandem with the returns on other fixed-income instruments. Before investing in them, compare them with other fixed-income instruments on return, safety, and taxation.

Return

Here, the picture is mixed across tenures. AAA-rated corporate FDs largely score over large public and private sector banks’ deposits. There are some exceptions though. In the one-year tenure, Bandhan Bank’s 7 per cent return is more attractive. In the three-year tenure, DCB Bank’s return of 7.5 per cent is comparable to the best rates offered by AAA-rated corporate FDs.

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First Published: Nov 22 2022 | 9:57 PM IST

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