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Why Invest in Corporate FDs?

They give you higher interest rates than bank FDs even shorter terms than bank FDs, this means your money becomes available to you faster also it’s easy to apply and nominate for continuity.

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 you 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.