Break My Fixed Deposit? You’ve Got to Be Kidding Me

Reading through my backlog of emails, here’s what I found:


Why would I ever want to break my ultra-safe Fixed Deposit(s) that currently earn a handsome 9% — 10% per annum and instead invest my money in something that’s much much riskier (AA-!) and only assures me up to 12.50% per annum? The risk premium ought to be much higher than a measly 2.50%. Hike that up to 5.00% and I might consider investing some spare money. But I wonder what’s the spread on this one. I also wonder what the money mopped-up is being used for.

Hope you haven’t broken your Fixed Deposit(s) for this one.

2 thoughts on “Break My Fixed Deposit? You’ve Got to Be Kidding Me

  1. Vinaya,

    Off late lots of NCD’s have been hitting the markets and some have got decent response too. Some of them are unsecured and some secured NCD’s. I am more comfortable with my FD’s earning 9.5 p.a.


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