If you invest in any AAA corporate Bond FD (Fixed Deposit) via your DematAccount than with Bank, you can easily get about 1%-1.5% higher Interest rates extra than offered by banks on deposits with similar holding periods.
Example: Suppose you Invest Rs. 1,00,000/- as FD in SBI for one year period.
Present Interest rate in SBI FD for 1 year holding period is 7%.
So, after one year you get Rs.1,00, 700/-
But if you had been invested the same in any Corporate bond via your DematAccount you should have get at least Rs.1,00, 800/-
Traditionally, people with on believe a low risk appetite go for fixed deposits (FDs) as they think their money are in safe hand as maximum Bank credit rating AAA or AA+.
However, with many mutual funds and corporate Bonds , having the same credit rating like Bank ( AAA or AA+) providing an option to invest in debt funds which generate fixed income and assure better returns, investors nowadays have more choices to consider.
A stable Bank like SBI have credit rating AAA which gives you confidence to invest in bank , but in the same credit rating any Corporate bond gives you minimum 1% extra Interest rate .
As the interest rate increase or decrease your Yield rate also gets automatically adjusted by increase or decrease in Bond value. So, your investment and monthly income get unaffected due to increase or decrease in Bank FD interest rate.
NSE Registration No: AP0397122371 BSE: AP0106120149058
|Tenure Period||Rate of Interest (% p.a.) w.e.f September 23, 2015|
|7 days to 14 days||4.00||4.50|
|15 days to 29 days||4.25||4.75|
|30 days to 45 days||5.50||6.00|
|46 days to 60 days||6.50||7.00|
|61 days to 90 days||6.75||7.25|
|91 days to 184 days||7.00||7.50|
|185 days to 289 days||7.25||7.75|
|290 days to less than 1 year||7.50||8.00|
|1 year to 389 days||7.75||8.25|
|391 days upto 2 years||7.90||8.40|
|2 years 1 day upto 3 years||7.75||8.25|
|3 years 1 day upto 5 years||7.75||8.25|
|5 years 1 day upto 10 years||7.50||8.00|
|5 Years Tax Saver FD Max upto Rs.1.50 lac#||7.75||8.25|
- As interest rates are subject to change without prior notice, depositor shall ascertain the rates on the value date of FD.