Bank FDs or company deposits: What should you opt for?
A couple of weeks ago, the State Bank of India (SBI) hiked interest rates on fixed deposits (FDs) across various tenures by 10-25 basis points. Most bank FDs offer lower interest rates compared to company deposits , but they are by far less riskythan the latter. It is because of this risk that these deposits come with higher interest rates compared with bank FDs. Bank FDs are viewed as comparatively safer than company deposits because the former are governed by stricter regulations of the Reserve Bank of India. "Taxation: Interest earned on both, bank and company deposits will be taxed according to the income tax slab you fall under.