Company fixed deposits are better than bank fixed deposits as they offer interest rates, which are significantly higher than bank fixed deposit interest rates. Bank FD rates are determined by a number of factors which might change per the interest rate movement decided by the Central Bank – the Reserve Bank of India via the Repo rate – the rate at which it lends to banks. However, you can be assured of high interest rates with company fixed deposits
When investing in company FDs, you may be lured by the financiers offering high interest rates. However, there may be risks involving delays and loss of invested amount. Here are some factors you must consider, when investing in company fixed deposits: