You may invest in corporate bonds through SEBI-registered Online Bond Platform Providers (OBPP).

However, before deciding to invest in corporate bonds, apart from the coupon rate, some of the factors that you should consider include:Ī) Whether the bond is secured or unsecuredĬ) Liquidity (will the bond be listed on the stock exchanges)Į) Bond tenure and whether it matches your investment tenure You will come across some corporate bonds offering interest rates in the 8% to 12% p.a. Currently, many corporates are offering even better interest rates on their bonds. In the above section, we saw how banks, particularly SFBs, are offering good interest rates.

To enjoy the benefits of the above high interest rates, consider investing some money in fixed deposits of either SFBs or other banks. Note: The above interest rates are as of 26th November 2023. The interest rates offered by some SFBs are as follows. Hence, there is no stock market-like volatility in the returns. The fixed deposit returns are specified at the time of making it, and stay constant throughout the tenure. 5 lakhs with every bank are insured by the Deposit Insurance Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India. Some people worry about the security of their money with SFBs. Small finance banks (SFBs) are offering interest rates in the 7.5% to 8.5% p.a. range on fixed deposits with tenures in the 1-4 years range. Most big banks are offering interest rates in the 6.5% to 7.5% p.a. The interest rates offered by many banks on their fixed deposits are at multi-year highs. Some of the financial products that you may consider include the following. How can you benefit from current high interest ratesĬonsider allocating some additional money to fixed income in 2024 to benefit from the current high interest rates. Whenever the US Fed cuts interest rates, the RBI is also expected to cut interest rates. If that happens, the Fed will have to cut interest rates to boost the US economy. Some experts predict the US economy may fall into a recession in 2024. In 2024, if the US inflation rate continues to trend down to or below the US Fed target rate of 2%, the Fed is expected to cut interest rates. As seen in the above image, in the last one year, the US inflation rate has fallen from a high of 7.1% (November 2022) to 3.2% (October 2023).

Fixed deposit interest rates hdfc