Bank fixed deposits are popular investment options as they bring assured returns. The returns depend upon the rate of interest Banks and NBFCs provide.We also have Company FDs and they can be potentially more beneficial than bank FDs. They offer higher interest rates than Bank FDs. But they are slightly risky as there are no returns if the company shuts down due to any reason. Most investors invest in companies with AAA rating.

These CFDs are also elderly friendly. The rate of interest is higher to the tune of 1 to 2 % as compared to Bank FDs. That is the reason why CFDs are rather popular among investors. They can be beneficial for long tenures.


Additionally, the New Company’s Act has made it a safer choice for investors. Companies whose annual turnover is more than Rs. 100 Cr are the only ones allowed to receive any money from the public. There are certain risks to these CFDs as compared to Bank FDs. You need to do ample research on the company you are going to invest in as far its background and history is concerned.
It is better to split your total investment into 2 or 3 CFDs to be on the safer side. You should remember that CFDs are taxable. This post will help to choose between company or Bank FD.