Corporate Deposit

Now, let us look at the main advantages of investing in the best corporate FDs:

• Flexibility of tenure:

Similar to Bank FDs, Corporate FDs also offer the flexibility of tenure ranging from 12 to 60 months for which you can remain invested. So, if you are saving for a short-term goal, you can invest for one year. If you are looking to build a decent corpus, you can invest for five years.

• Assured returns:

 As we learnt earlier, the best company FDs enjoy higher ratings from notable credit rating agencies. Most companies offering corporate deposits are certified with CRISIL’s FAAA/Stable rating and ICRA’s MAAA/Stable rating. These are considered as some of the highest safety ratings offered in the industry in terms of timely payment of principal and interest. A company with a high credit rating is likely to guarantee assured returns on your investment regardless of the market fluctuations.

• Higher interest rates:

Compared to Bank FD rates, corporate FD rates are higher. Over and above these interest rates, senior citizens can avail of an additional benefit of 0.25%. So, if an individual invests with Bajaj Finserv for less than 2 years, he will earn an interest rate of, say, 6.10%. For a senior citizen, the interest rate would be 6.35%.

This fixed income can come in handy for senior citizens who rely on fixed deposit returns post-retirement for meeting their living expenses.