Bank FD Vs Corporate FD:  In middle class families, saving the money left at the end of the month after expenses is a big support for the future. Fixed deposit is still the most reliable option for people to earn additional income. For this, people go to the post office or bank. In the post office, they prefer schemes like National Savings Certificate or Kisan Vikas Patra which double the amount in 10 years.

Both bank FD and corporate FD will give good returns

Those who are a little more financially savvy compare the interest rates of different banks and make a fixed deposit of the amount in the bank that gives better returns.

It is important to know the pros and cons of corporate vs bank FD

Remember that fixed deposits are a limited investment option only for those who want guaranteed returns. But do you know that corporate FDs give even higher returns than bank FDs. Yet it has not become a better option than bank FDs? Let us consider these reasons. The biggest reason is the safety of investment. Since bank FDs are regulated by the Reserve Bank, its returns are safe. That is, it is certain that the amount invested and the benefits promised on it will be received.

Why is there doubt on corporate FD

The biggest fear about corporate FDs is the default of the issuing agency or the deposit taking agency. After that, one has to face a long legal process to recover the amount. Corporate FDs are also not insured. Due to this, the risk increases even more. But the option of investing in corporate FDs with good credit from reputed credit rating agencies can be considered safe to a great extent. In this way, bank FDs provide low returns at low risk and corporate FDs provide high returns at high risk. Therefore, investing in both is a good option if one invests wisely.