Small finance banks are able to provide higher returns as compared to larger banks due their low overhead costs
But an individual should consider some important factors before investing in corporate FDs. One of the main factors is safety of deposit.
Corporate deposits are similar to bank FDs. These deposits are offered by companies and carry higher interest rates.
Amit Kukreja, founder, Amitkukreja.com, told Money9 that people can opt for a zero default product called RBI Floating Rate Bonds
Company deposits offer an advantage over bank deposits by 1-3%