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When thinking of safe savings, most of us always home in on fixed deposits (<keyword id="6568461" type="CITY" weightage="20" keywordseo="FDs">FDs</keyword>) 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 <keyword id="603034" type="COMPANY" weightage="20" keywordseo="corporate-FDs">corporate FDs</keyword>, 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? 
 Corporate FDs, or non-convertible debentures (NCDs), are similar to bank FDs except that they are offered by corporates and not financial institutions or banks. Corporate FDs are, basically, fundraising exercises through which a corporation raises <keyword id="6354840" type="PERSON" weightage="20" keywordseo="money">money</keyword> for running its business. Here, the investor’s (your) money is used for repaying existing loans, expanding businesses, optimizing business plans, and other similar activities. Some of the popular corporate offering FDs come from Mahindra <keyword id="25455" type="ORGANIZATION" weightage="20" keywordseo="finance">Finance</keyword>, Gati, DHFL, PNB Housing and Bajaj Finance. 
 
What’s good about Corporate FDs 
The first question on your mind must be: what makes corporate FDs better than regular FDs? And the answer to the same lies in the points below. 
 
· Rate of interest: Corporate FDs offer higher interest rates than those of a bank, in the range 9%–13%. Some companies offer even higher interest rates to senior citizens. 
 
· Credit ratings: Corporate FDs are rated by independent rating agencies, such as CRISIL, ICRA and CARE, which assess the credit worthiness of the issuing companies. On the other hand, credit ratings are not applicable in the case of bank FDs. 
 
· Interest payments: Investors can choose the frequency of interest payments: monthly, quarterly, half-yearly, annually, or on a cumulative basis. This option offers investors with an additional source of income. 
 
Not all is hunky dory about Corporate FDs 
Before you take a plunge in Corporate FDs market, you should measure its pros against the below-mentioned cons. 
 
· FD term: Banks offer multiple term options for investing, starting from 30 days. On the other hand, the typical time frame of a corporate FD ranges from 1 year to 8 years. 
 
· Withdrawals: Bank FDs are easy to withdraw, whereas withdrawing from a corporate FD can take up to a few weeks. 
 
· FD <keyword id="35450" type="COMPANY" weightage="20" keywordseo="insurance">insurance</keyword>: RBI’s Deposit Insurance and Credit Guarantee Corporation (DICGC) insures bank deposits of up to Rs 1 lakh. The same cannot be said though for the Corporate FDs. 
 
· Risk Quotient: Corporate FDs come with higher risk as they are unsecured. If a company defaults, the investor stands to lose significant amount of the invested money. To minimize risk, it is advisable to invest in companies with high credit ratings. 
 
Make a note of, when investing … 
 Before investing in a corporate FD, one of the good initial filters is checking the company’s <keyword id="142429" type="EVENT" weightage="20" keywordseo="Credit-Rating">credit rating</keyword> and the corresponding rating agency. The investor can check the company’s track record in dealing with investors and depositors. Hence, credit ratings and investor goodwill should be the key deciding factors. 
 
Go for the Corporate FD if you: 
 
- are comfortable with lower or no liquidity 
- have seen the credit ratings and are comfortable with the sector and the brand (company) 
- are seeking returns higher than bank FDs 
 
 
Table 1: Pros and Cons 
 
 
 
Table 2: Some of the current corporate FDs 
 
 
Image: Indiatimes 
 
(About the author: This article has been written by Naveen Kukreja, Director, Paisabazaar.com)

Here’s Why You Should Choose Corporate FDs Over Traditional FDs

When it comes to investments, you always need to do a careful planning and research before settling with an option. This is because, the decision you make can affect the several aspects of your investment like flexibility of operation, tenure and interest rate besides many others. Here we compare between the FDs offered by banks and the Post Office Savings Scheme to decide which among them is the better option for investors looking from different angles. Bank FDs and Post Office Savings Bank FDs are the conventional fixed deposit investment instruments offered by different banks. Any amount of money without any upper limit can be invested in FD for a period ranging from 12 months to 60 months. The rates of interest for FDs vary between banks and for different categories of investors like regular investors and senior citizens. Post Office Savings scheme is operated by Post Office which is also popularly called as small savings scheme. They are known to offer far better interest rates and returns than bank deposits. Here is a comparison of the different features of FD and Post Office Saving Scheme. Interest rate of Bank FD and Post Office To compare the interest rate between FD and Post Office, let us take the case of SBI for example. SBI is the largest lender in the country. While SBI offers only 5.75% interest on your investment in FDs, a five year term post office term deposit can give you 7.4%. The interest rate of PPF is 7.8%. NSC offers 7.6% interest on deposits and the interest rates for deposits in <keyword id="248266" type="PERSON" weightage="20" keywordseo="Sukanya">Sukanya</keyword> Samriddhi and KVP are 8.1 percent and 7.3 percent respectively. Tax efficiency When compared to the banks FDs, some schemes offered by the post office are seen to be more tax efficient. For instance, what is earned from PPF is completely tax exempted. On the other hand, all that is earned from FD is taxable. Under Section 80C, it is possible to get tax savings for bank FDs. Some select post office savings schemes like PPF, National Savings Certificate, and Sukanya Samriddhi can give the investors similar tax benefits. Since post office savings schemes combine in them a higher interest rate as well as some attractive tax benefits, they weigh more than the bank FDs. Advantages for senior citizens in FD and Post Office Majority of the bank deposits do not give any encouraging benefits to senior citizens. Whereas, the Senior Citizens Saving Scheme offers 8.3% per annum. The senior citizens looking for monthly income will find the monthly income scheme much better at Post Offices s it would offer an interest rate of 7.3% per annum. The monthly interest rates on the bank deposits are considerably lower and hence are not that beneficial when compared with the post office savings schemes. Service quality in Bank FD and Post Office In this one aspect, the banks significantly outweigh the post offices. When it comes to customer service, banks work with the latest and advanced technology today. The experience at the post office can be time consuming and tedious involving a lot of paper work. However, considering the significant gains that you have while investing in the post office savings schemes, you can overlook this aspect and settle with these better investment instruments to gain more from your hard earned money.

Bank FD Vs Post Office Saving Scheme : Which Is Better

In assuring convenience and safety over several other kinds of investments, Fixed Deposit (FD) and PPF (Public Provident Fund) are highly popular investment options. Though both of them are investment instruments, there are some stark differences between them that are worth considering for the purpose of making the right choice. If you are wondering which one is the right kind of investment option for you, the discussion hereunder will give you some useful points to weigh their pros and cons. <keyword id="8078727" type="UNKNOWN" weightage="20" keywordseo="fd-and-ppf">FD and PPF</keyword> differ substantially from each other Both these modes of investments offer a great degree of convenience to the investors. Nevertheless, the differences between them are substantial. Each of them come with their own unique set of characteristics that are important for customers. Here we compare the different features of FD and PPF. FD and PPF - Comparison Tenure PPF comes with a rigid tenure. This means the investment you make will be locked in for 15 years. There are no other flexible tenures offered to the customers when it comes to PPF. On the other hand, FDs come with flexible tenures ranging from 12 months to 60 months. While the investor can choose the tenure of his investment in case of FD, it is not possible to do so with regard to PPF. Premature withdrawal The amount invested in PPF can be withdrawn only after 5 years. Even then the amount you can withdraw is limited. Hence for all practical purposes, you can say you have no control over the amount invested in PPF for the entire tenure of the investment. On the other hand, it is possible for you to withdraw the amount invested in FD during any point of time when you come across a need. You can close a FD prematurely or can avail of a loan against them. Tax benefits Section 80C of the taxation laws in India makes it possible to earn tax benefits on both PPF and FDs. In order to avail of the tax benefit for investing in FD, you must invest the amount for a specific period of time. Loans The investor can avail of loans against PPF only after the PPF investment completes 3 years. However, you can get a loan against FD during any point of time. You can get loans up to 75% on cumulative FDs and up to 60% on non-cumulative FDs. Limit on deposits In PPF, you can invest only up to 1.5 lakhs in a year. There is no upper limit on how much you can invest in a FD in a year. Rate of interest In case of PPF, the rate of interest is set by the government. The rate of interest of FDs are set by individual banks NFBC. Final word As an investment instrument, FD offers more flexibility than PPF. If you are keen to take advantage of the benefits of FD, do some research to find out which bank is offering the best interest rate on a FD and make your investment decision.

FD and PPF which is better?

The <keyword id="6354335" type="CITY" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> (<keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword>) cut repo rate by 25 bps to 6.25% and now banks have to be active in passing it to the consumers so that people, especially the home-buyers, benefit from the interest rate cut. 
 The repo rate cut by <keyword id="3715773" type="UNKNOWN" weightage="20" keywordseo="rbi-governor-urjit-patel">RBI Governor Urjit Patel</keyword> has indeed come as a good news for home-buyers as <keyword id="6388045" type="COMPANY" weightage="20" keywordseo="emis">EMIs</keyword> are now expected to go down. 
 
Now, it all depends on the banks as since 2015, despite the RBI slashing the repo rate by 1.50%, the banks have passed on a mere 0.5%. 
 
However, one of the main losers due to the repo rate cut will be people having Fixed Deposits (FDs). This is because, with a lower repo rate, banks will also cut the deposit rate if liquidity is comfortable. This will impact depositors and investors and is expected that the interest on FDs will fall in the immediate future. 
 
If you are still confused on all the repo rates and Cash Reserve Ratio (CRR), here’s the simplified version: 
 
Repo rate: 
Repo rate is the rate at which the RBI lends money to the banks when there is fund crunch and is cut or increased, keeping the inflation in mind. So, if inflation is high and banks increase the repo rate, banks will have to take money from the RBI at a higher rate. 
 
Reverse repo rate: 
Reverse repo rate is the rate at which the RBI borrows money from the banks. If the Reverse repo rate goes up, banks will get more money to park their funds with the central bank. 
 
Cash Reserve Ratio (CRR): 
CRR is the minimum amount that banks have to keep from the total deposits of customers. This goes in the current account of the banks and they do not earn any interest on this. Presently, the CRR is at 4%. 
 
So, how does this affect you? 
 
Home-loans and Auto loans: If banks pass on the rates, consumers will benefit from the cumulative effect. EMIs will fall as banks will also lower down their lending rate as it all depends on banks’ marginal cost of funds based on lending rates. 
 
FD investors: This is impact the fixed deposits as the banks will have to cut rates on the FDs and people will earn less interest.

Decoded: Here’s how repo rate cut will help home-buyers and affect FD investors

New Delhi, Mar 19 () Yes Bank on Thursday said it has transferred a Rs 389-crore fixed deposit account of Shree Jagannath Temple Administration, Puri, to State Bank of India. The fixed deposit (FD) account of the temple has accrued a total interest of Rs 8.23 crore. "As per the term of condition of FD placed with us, Yes Bank Ltd has fully paid all the quarterly interest on time up to December 31, 2019. The remaining interest that has accrued till March 19, 2020, has been remitted along with the principal amount of Rs 389 crore to SBI account of Jagannath Temple Corpus Fund," Yes Bank on Thursday said in a letter, accessed by . In the letter addressed to Chief Administrator Krishan Kumar of the famous temple shrine in eastern India, Yes Bank said it has two more FDs of Rs 156 crore which will be transferred by the end of this month. These FDs of Rs 156 crore are also under no-premat option which does not allow the bank to pay prematurely, the letter said. "As the extended guidelines of the regulator, we shall remit the principal amount of Rs 156 crore and interest up to date on the date of maturity that is March 30, 2020, to the designated account of Jagannath Temple Corpus Fund...to SBI Main Branch Puri," Yes Bank said in the letter undersigned by its Senior Vice-President Jaydev Das. Yes Bank resumed its full banking services from Wednesday evening and customers started visiting the branches from the morning of Thursday. KPM HRS

Yes Bank transfers Puri Jagannath Temple's Rs 389-cr FD account to SBI

New Delhi, Dec 24 () Former Fortis Healthcare promoter Malvinder Singh was arrested on Tuesday in another case related to alleged misappropriation of funds at Religare Finvest Ltd (RFL), the police said.
 Singh is already in judicial custody in another case.
 RFL alleged that Malvinder Singh and his brother Shivinder Mohan Singh in connivance with the employees of Lakshmi Vilas Bank misappropriated two FDs of Rs 400 crore and Rs 350 crore made with the Lakshmi Vilas Bank by the complainant company, the police said.
 The investigation in the case, filed in September, revealed that the duo misappropriated the amount by availing loan from the bank against these FDs in RHC Holdings Pvt Ltd company they owned and further squaring off their abilities, according to the police.
 Malvinder and Shivinder systematically siphoned off and diverted public money in a clandestine manner for their own benefit, they added.
 A Delhi court had on Monday extended the judicial custody of Malvinder Singh and a co-accused by two weeks in a money laundering case related to alleged misappropriation of funds at RFL.
 Besides Malvinder, the court remanded Sunil Godhwani, former CMD of Religare Enterprises Ltd (REL), to judicial custody till January 6 next year
 Earlier, Malvinder, his brother Shivinder, and Godhwani were in judicial custody along with two others -- Kavi Arora and Anil Saxena -- in a case filed by the Economic Offences Wing (EOW) of Delhi Police.
 The five were arrested by EOW for allegedly diverting the money and investing in other companies.
 The EOW registered an FIR in March after it received a complaint from RFL's Manpreet Suri against Shivinder, Godhwani and others, alleging that loans were taken by them while managing the firm but the money was invested in other companies. NIT CK

Malvinder Singh arrested in another case of funds misappropriation

<ul class="summary-list"><li>NASA engineers may have found a clever trick to get Voyager 1 talking in ways engineers understand.</li><li>The probe, showing its age, has been sending back garbled data since November. </li></ul>Voyager 1 has taken to improvising in its old age, making it very difficult to understand what it has to say.The probe has sent back a steady flow of gibberish since November, worrying scientists trying to capture the final slivers of information from the 46-year-old spacecraft.Undeterred, NASA engineers have been working to rescue the data. A "poke" sent to Voyager 1's internal systems on March 3 may have brought it back from the brink, NASA announced on<a target="_blank" href="https://blogs.nasa.gov/sunspot/2024/03/13/nasa-engineers-make-progress-toward-understanding-voyager-1-issue/"> Wednesday.</a>NASA engineers spotted an unusual dataset in the response to their prompt. This may hold the key to deciphering the spacecraft's cryptic signal, the agency said.<div type="image" title="A photo montage shows pictures taken by the Voyager probes next to an illustration of what the Voyager probes look like." height="1500" width="3000" msid="108527928" hostid="261"></div>The <a target="_blank" href="https://www.businessinsider.com/nasa-extends-voyager-2-probe-life-3-years-45-mission-2023-4">Voyager 1 and Voyager 2</a> probes have been feeding data about our universe since the late '70s when NASA first launched them.They remain marvels of engineering — no one expected them to <a target="_blank" href="https://www.businessinsider.com/nasa-voyager-pictures-45-year-journey-neptune-uranus-saturn-earth-2022-6#the-voyager-probes-were-designed-to-visit-jupiter-and-saturn-1">survive longer</a> than five years. But they have continued to send back information about the cosmos, exceeding their lifespan more than nine times over.Voyager 1 and Voyager 2 hold unique positions in space-exploration history as the only spacecraft to have ventured into interstellar space. Each spacecraft is more than 10 billion miles away from Earth and getting farther every day.While their instruments are feeling the weight of their age, NASA has managed to continue squeezing information out of the spacecraft with clever engineering tricks.This approach has provided an unprecedented glimpse into what happens beyond the sun's reach."That's what's most important is keeping these spacecraft operating as long as possible," Suzanne Dodd, NASA's project manager for Voyager, <a target="_blank" href="https://www.businessinsider.com/nasa-voyager-spacecraft-where-still-contact-communication-end-soon-2024-1">told Business Insider</a> in January.The glitch in Voyager 1 data is hardly unexpected. It is only the latest in a series of <a target="_blank" href="https://www.businessinsider.com/nasa-loses-contact-voyager-2-sent-wrong-command-mistake-space-2023-8">issues </a>in the probes' systems NASA has had to tackle. Experts have been concerned that repeat <a target="_blank" href="https://www.businessinsider.com/engineers-turn-to-voyager-decades-old-documents-fix-a-glitch-2022-7">malfunctions</a> are signs the probes are entering the last moments of their functional lives.But NASA appears to have found a solution. Engineers knew Voyager 1's issue seemed to lie with one of the three on-board computers that package the probe's data before sending it to Earth — the flight-data subsystem, or FDS.The ping to the FDS on March 1 returned a mostly muddled signal on March 3, but it contained some data that "differed from the rest of the computer's unreadable data stream."One NASA engineer with its Deep Space Network decoded this precious signal, unlocking a "readout" of the FDS's memory that contains instructions and variables the engineers can use to understand what went wrong.This doesn't mean all is saved."The team is analyzing the readout. Using that information to devise a potential solution and attempt to put it into action will take time," NASA said.Regardless of what happens, the probes' final missions will continue.Even when they can no longer communicate with Earth, Voyager 1 and Voyager 2 will continue to drift through the galaxy, carrying <a target="_blank" href="https://www.businessinsider.com/where-are-voyager-golden-records-elon-musk-2024-3">golden records</a> with information about humanity.The hope is that these could act as interstellar messages for potential intelligent life that may intercept the iconic spacecraft.

Voyager 1 briefly came back to life after a 'poke' from NASA, giving scientists hope for the 46-year-old probe

If you wish to explore investment options, you will find an array of financial products in the market. <keyword id="74427" type="PERSON" weightage="20" keywordseo="fixed-deposit">Fixed deposit</keyword> and <keyword id="6406875" type="UNKNOWN" weightage="20" keywordseo="life-insurance">Life insurance</keyword> plans are among the investment vehicles that provide high returns on your investment. They are also highly popular investments products that most people are aware of. Though life insurance is an insurance product, quite a many people use it as an investment option. On the other hand, fixed deposit is an insurance product that can let you invest for varying tenures. When you want to decide which among them is a better investment option, read on to throw more light on the topic. Why invest in fixed deposits? Banks and other financial firms offer fixed deposit schemes and you can reap a wide range of benefits by investing in them. FD schemes give you higher returns compared to what you get on your <keyword id="114757" type="PERSON" weightage="20" keywordseo="Savings-Account">savings account</keyword>. The returns are assured and you can make premature withdrawal in case of arising needs and emergencies. The interest accumulated can be claimed either monthly or annually or on maturity of the investment. You can choose the investment tenure from 7 days to 10 years. Why invest in life insurance schemes? Similar to FDs, life insurance plans also come with a set of attractive benefits. On your fixed deposits, you can get tax benefits under Section 80C and 80D of the Income Tax Act of India 1961. In the event of the policy holder’s death, the life insurance plan provides a risk coverage to the dependents in the family. The coverage provided by the life insurance plan stretches far beyond the period for which the premium is paid. The different types of life insurance plans available are term insurance plans, whole life plan, retirement plan, senior citizen plan and others. Comparing between FD and Life Insurance Plan Fixed deposit is considered as a better investment option as it is exclusively designed for your investment as well as saving needs. If you wish to save and also invest for future, it is always advised to invest in FDs. On the other hand, life insurance plans are meant to offer risk protection as well as protect the financial interests of your family in your absence. Thinking of short and long term investments, FDs are better. Life insurance plan are suitable only as long term investment options. The minimum period of investment in a life insurance plan is about 10 years. The minimum amount that you can deposit in a FD plan is Rs. 1,000. The minimum period differs between plans in a life insurance plan. You will know the returns in case of a fixed deposit scheme in the beginning of the investment whereas in some unit linked life insurance plans, the returns are subject to market conditions. Fixed deposits are made for saving needs and life insurance plans are bought in order to relieve your near and dear ones from the financial risks in case of your unexpected absence. Final word Life Insurance Vs FD If fixed returns is your expectation, FD is a good investment option though you might not get any tax benefits. Even if you look forward to regular earnings from your invested amount, FD is a better option. It is also the best choice for senior citizens. Life insurance plan is a good one only when viewed as a risk coverage measure.

You Searched For "FDs" and got 8 results

Here’s Why You Should Choose Corporate FDs Over Traditional FDs

Guest Author

Bank FD Vs Post Office Saving Scheme : Which Is Better

BI India Bureau

FD and PPF which is better?

BI India Bureau

Decoded: Here’s how repo rate cut will help home-buyers and affect FD investors

Akanksha Jain

Yes Bank transfers Puri Jagannath Temple's Rs 389-cr FD account to SBI

PTI

Malvinder Singh arrested in another case of funds misappropriation

PTI

Voyager 1 briefly came back to life after a 'poke' from NASA, giving scientists hope for the 46-year-old probe

Marianne Guenot

Life Insurance vs FD: which is better for investment

BI India Bureau

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