Bank FD Vs Corporate FD: Bank or Corporate FD, where will you get huge returns by investing your money?
Bank FD Vs Corporate FD: Fixed deposit is considered a better option for setting up. There is risk in investing money in share market or mutual fund. But there is no risk of any kind in FD. It is certain to get fixed returns on FD. People go to banks for FD. But very few people would know that there is also a corporate FD. You get a fixed return in the bank. But the chances of getting higher returns are higher in corporate FD.
Corporate FD and bank FD are almost similar. Let us know which FD can give you more profit and which FD is more secure.
Corporate FD is also a fixed deposit like bank FD. Non-banking finance companies or other similar companies provide corporate FD services.
Where do you get more interest?
Companies selling corporate FDs offer more interest than bank FDs. Therefore, in terms of returns, corporate FD can give you more profits than bank FD. If you want to get higher returns, corporate FD may be best for you.
What is the risk?
If we talk about risk, then your Rs 5 lakh remains absolutely safe in the bank. Even in case of bank closure, you will get an amount of up to Rs 5 lakh. Therefore the risk in bank FD is less.
Whereas, this is not the case in corporate FD. If the company goes bankrupt, your FD money can also go bankrupt. Therefore, there is more risk in corporate FD. If you are making a corporate FD, then before doing that you should research that company thoroughly. Do check out his old record.
Higher penalty on corporate FD
If you withdraw money before time in corporate FD, you may have to pay more penalty. Whereas in bank FD the penalty is less. If needed, you can break the bank FD.
