Company FD rates are still over 8%: Who should invest in a corporate fixed deposit, who should avoid?
Published by Economic Times
Abhishek Kumar's role: Quoted
Abhishek Kumar, founder of SahajMoney, said small investors should stay away from corporate FDs because they stand to lose a great deal if the issuer defaults.
More of Abhishek's views on saving and deposits
Written in September 2023 as bank FD rates began to dip, this article looks at company fixed deposits from NBFCs and manufacturers, many offering more than 8% at the time. It explains their credit risk, the lack of deposit insurance, the limits of credit ratings, stricter premature withdrawal terms, TDS rules and who should consider or avoid them, with a rate table as on August 29, 2023. It includes comments from Abhishek Kumar.
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Company FD rates are still over 8%: Who should invest in a corporate fixed deposit, who should avoid?
