AAA-rated company FDs offer over 6% returns, but consider risks
Times have changed. You have stringent regulations around which companies can float such FDs, but remember that company FDs are unsecured. In case a company goes insolvent, depositors will be the last ones to get paid. That said, invest with companies with good profitability and rating
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At a time when interest rates in the economy are at historic lows, hunting for extra yields is in everyone s mind. This drives many people to company fixed deposits (FDs) because bank FDs are not offering good returns. State Bank of India is giving 5.30 per cent interest rate on three to five years FDs. Alternatively, most high-rated company FDs are offering more than 6 per cent interest rate. But returns should not be the only criteria to take an exposure in it.
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