Fixed Deposits
Can Corporate Bonds Be Your New Fixed Deposit? Navigating Returns and Risks in a Falling Interest Rate Landscape
Sarfraz Khan
4 minutes read
FD rates are falling, prompting investors to consider corporate bonds for potentially higher returns (7.5-9% vs. 5.5-7.4% for FDs). While bonds offer better yields and some tax benefits, they carry credit, interest rate, and liquidity risks, unlike insured FDs. Experts advise focusing on highly-rated (AAA/AA) corporate bonds and diversifying. The booming Indian bond market and RBI's stance further