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Business News/ Money / Personal Finance/  Check out the highest company fixed deposit rates
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Check out the highest company fixed deposit rates

Mint does not recommend corporate FDs to average investors because of the risk involved. But if you would like to invest in them anyway, you should minimize the risk by choosing issuers with high ratings

Photo: iStockPremium
Photo: iStock

Many companies in the country are offering as much as 9% interest rates on their fixed deposits. Considering the current interest rate environment, the interest rates look attractive. Financial planners, however, cautioned investors to understand the risks that come with company FDs before investing.

Company fixed deposits (FDs) or corporate FDs are popular among investors who want fixed returns that are slightly higher than what bank FDs give, even if it is at a slightly higher risk. However, just like FDs, interest payment on corporate FDs is fully taxable at your income tax slab rate, so factor in the post-tax returns.

Here's a list of corporate FDs that are rated AA and above
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Here's a list of corporate FDs that are rated AA and above

Mint does not recommend corporate FDs to average investors because of the risk involved. But if you would like to invest in them anyway, you should minimize the risk by choosing issuers with high ratings. An AA rating indicates that the degree of safety regarding timely payment is strong. The higher the rating, the better the risk capacity of the issuer. Also, make sure the terms of premature redemption are not very stringent. Here's a list of corporate FDs that are rated AA and above.

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Published: 07 Oct 2020, 02:14 PM IST
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