BackCompare company FD rates and ratings
You must minimise the risk of investing in them by choosing issuers with high ratings
PremiumCorporate FDs are popular among investors who want fixed returns that are slightly higher than what bank FDs give, even 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.
Mint does not recommend corporate FDs to an average investor because of the risk involved. But if you like to invest in them nevertheless, you must 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 for premature redemption are not very stringent.
Here's a list of corporate FIs that are rated AA and above.
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