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Attractive Returns Bring Back Interest in Corp Fixed Deposits

The interest rate on FD’s has increased:

There are three factors why these are popular — stable avenue of income, safety of the investment due to the high reputation of the corporates and the interest rate arbitrage that has come down in debt schemes, owing to revision in dividend distribution for mutual funds

Best-rated fixed deposits from Mahindra and Mahindra Finance offer 12.2% per annum and fixed deposits issued by Jaypee Group offer rates as high as 15.07% on a three-year FD on a cumulative basis

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