Corporate FDs are offering over 1 per cent more than bank FDs. Should you invest?

Move over the traditional bank FDs. Corporate FDs (fixed deposits) are the cool kids in school. These days, companies like Bajaj Finance and Shriram Finance are offering as much as 8.27 per cent interest rate to investors. But does that mean you should dip your feet in them? Let's find out. The good: Higher interest rate Corporate FDs are offering over 1 per cent more than traditional bank FDs. Corporate FDs >Bank FDs The difference in interest rates are between 1.07 to 1.28 per cent Period (Months) HDFC Bank SBI Kotak Bank Shriram Finance (AA+ Rated - ICRA) Bajaj Finance (FAAA rated - Crisil) 12 6.6% 6.25% 6.5% 7.53% 7.4% 24 7% 6.8% 7.3% 7.81% 7.5% 36 7.15% 7% 7%