The interest rate of company fixed deposits varies from company to company and investment tenure. Generally, the rate of interest given by the company is one to two per cent more than what is given by the Bank Fixed Deposits (FDs).
But unlike Bank FDs, which are risk-free, the company FD is not risk-free and carries a high risk of default. Company Deposits are rated by different rating agencies like ICRA, CRISIL etc. Higher the rating safer the investment is.
One can invest in FMPs, which are more like an FD, but are more tax efficient.
Debt funds with low average maturity could also be considered as they carry lesser interest rate risk.
But unlike Bank FDs, which are risk-free, the company FD is not risk-free and carries a high risk of default. Company Deposits are rated by different rating agencies like ICRA, CRISIL etc. Higher the rating safer the investment is.
One can invest in FMPs, which are more like an FD, but are more tax efficient.
Debt funds with low average maturity could also be considered as they carry lesser interest rate risk.