When thinking of safe savings, most of us always home in on fixed deposits (FDs) offered by banks. And rightly so, because such FDs have many advantages, such as: interest rates ranging from 8.5% to 9.5%, tax savings, and the facility of premature withdrawal, if required. But have you ever considered corporate FDs, which offer higher returns?
Recently, some Indian banks reduced the interest rates on deposits by 0.25%-0.75%, which has made corporate FDs even more lucrative.
What exactly are Corporate FDs?