HOW TO CHOOSE A  
CORPORATE FD?

Important thing with corporate fixed deposits is to choose the company that you are investing in wisely.
Here are some factors to keep in mind when investing in Corporate FDs:

 

Reputation & Rating

Invest in a company with a good reputation and a good credit rating (given by industry-recognised rating agencies like CRISIL, ICRA).
 

Diversify

You are investing in more than one corporate FD, invest in different companies operating.n different industries
 

Time period

Usually, corporate FDs are invested in
for 1-3 years

 OFFERED  
CORPORATE FDs

 

 

 WAYS TO INVEST IN A  
CORPORATE FDs

Like any other fixed deposit (FD), you have to invest a chunk of money at one go in a corporate FD.
However, there are two ways in which you can receive the interest on your investment

 

Cumulative

In this type of corporate FD, the interest earned is added to the principal so that your earn interest on the interest. Simply put, this means higher returns. This is good if you aren't looking for regular income from your investment
 

Non-Cumulative

In this type of corporate FD, the interest earned is paid out to you while further interest is calculated on the original sum you invested. This means you earn an income at regular intervals, but eliminate the possibility of earning interest on interest