Corporate Fixed Deposits are term deposits which are offered by companies when they are in a hurry to raise cash for which they offer attractive fixed interest rates. When investors invest in corporate fixed deposits they are issued deposit certificates of different tenures (1-5) at fixed interest rates.
Credit Rating: Opt for high Credit Rating Companies only.
Company Background: Check out the company's financial statements before investing.
Repayment History: Assessing a company's repayment history will help you estimate the company's credibility and stability.
Swaraj Wealth has years of experience in Corporate Fixed Deposits. Our experts will guide you to the best Corporate FDs which have a very high credit rating and offer high-interest rate with AAA or equivalent rating. We caution our customers against low credit rating companies and those with a poor track record.
Generally, companies with high credit ratings offer interest rates between 9.25 to 10.75 percent while those with lower credit ratings offer a much higher rate of interest to make up for their possible default risk.
There may be some companies especially the newly established ones with uncertain future which offer interest rates as high as 15%. Swaraj Wealth believes that investment in such companie's low credit rating and high-interest rates should be completely avoided.
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