Why ULIP mis-selling has become rampant ?
Why is there so much mis-selling of ULIP? How to avoid this mis-selling? Who should take ULIP?
Fixed deposits are still the most preferred investment option for an average Indian. Corporate FDs are term deposits that are offered by corporates and non-banking financial companies (NBFCs).
HDFC Ltd and Bajaj Finance, both AAA rated companies, have hiked interest rates on their fixed deposits (FDs) upto 0.15 – 0.30 percentage point respectively. The new interest rates are effective from December 1, 2021.
HDFC latest FD rates
HDFC Ltd hiked its FD rates by upto 0.15 percentage point. After the latest revision, they are offering 6.25% interest on 33-month deposits, 6.7% interest on 66-month deposits and 6.8% interest on 99-month deposits. HDFC is also offering 0.1 percentage point more interest on online deposits across all tenure.
Senior citizens will continue to get additional 0.25 percentage point interest on deposit than general customers.
Bajaj Finance latest FD rates
On the other hand, Bajaj Finance has hiked interest rates on fixed deposit up to 0.30 percentage point on long term deposits. Now they are offering 6.4% interest on its 24 – 35 months FD and 6.8% on 36 – 60 months deposit. But there is no change in interest rates on FDs for the period between 12 – 23 months.
Conclusion
Company fixed deposits (FDs) carry higher risk than bank fixed deposits (FDs). Bank FDs up to 5 lakh are secured with insurance cover offered by Deposit Insurance and Credit Guarantee Corporation (DICGC). But there is no such insurance cover for company FDs.
Various credit-rating firms such as CRISIL, ICRA, and CARE, assess the credit quality of these non-banking financial companies (NBFCs). Naturally, a high-rated company deposit with AAA or similar grade is always highly preferable.