Fixed Deposits

Fixed deposits of banks and corporates

People perceive fixed deposit as 100% safe government investment product issued by banks. But in reality these are deposits not only raise by banks but also by certain corporates (subject to getting license from RBI), NBFCs, cooperative banks & societies.

FDs of corporates V/s FDs of Public sector banks and private sector banks
FD’s issued by public sector banks & private sector banks are considered to be safe as compared to co-operative bank’s and corporate FDs. However there are certain corporates which can be considered equally safe as public sector banks & private sector banks based on rating done by rating agencies

For example credit rating by CARE (a rating agency)
AAA: - Level of safety equals to the top-level public sector banks like SBI, BOB, and PNB etc.
AA: - Level of safety equal to banks like Allahabad bank, Dena bank etc.


FDs of corporates verses FDs of Public sector banks and private sector banks

There is misconception that FD’s issued by cooperative banks are as safe as that of public sector banks. There are several instances where cooperative banks/societies had collected huge deposits from the public at higher rates, and defaulted in making the interest & principal payments.

Companies, which are, rated AA or more by rating agencies are as safe as bank FD’s as these kind of rating denotes negligible chances of default.

We recommend investing in such FD’s, as it provides 2-3% more returns than the bank FD.

• Mutual Funds
• Fixed Deposits
• NCD
• Bonds
• Gold Bonds