COM­PAR­A­TIVE STUDY: BFSI

Com­pany Fixed De­posits Are they bet­ter than bank de­posits?

Consumer Voice - - News -

Also known as cor­po­rate FDs, com­pany fixed de­posits (CFDs) are com­pa­ra­ble to bank FDs. The main dif­fer­ence is that com­pany FDs of­fer higher rates of in­ter­est – this also means that there is higher risk in­volved. So, while the math­e­mat­ics of re­turn is favourable, one needs to un­der­stand the risks as­so­ci­ated with these schemes. Un­like in the case of bank de­posits, a com­pany can de­fault on pay­ment of in­ter­est and prin­ci­pal. What fac­tors does one need to con­sider be­fore in­vest­ing in CFDs? How to choose the best CFDs? The re­port here un­rav­els these as­pects for the in­ter­ested layper­son.

Subas Ti­wari & Gopal Ravi Ku­mar

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