If you are interested in investing in investment grade Bank CDs (Certificates of Deposit), Corporate CPs (Commercial Papers) and Corporate Bonds, please register here and we will be in touch with you(registration is common for SBI DFHI Invest , SBI DFHI Trade, SBI DFHI Invest Plus & SBI DFHI Money).
Who can Invest ?
- Individuals
- Corporates
- Regional Rural Banks
- Co-operative Banks
- Provident Funds, Pension Funds, Gratuity Funds
- Trusts
- Insurance Companies
- Mutual Funds
- Banks
Pre-requisites: Demat account
What is a CD ?
A CD is a short term security (7 days to 365 days) issued by a commercial bank at a discount to the face value. Invest in CDs starting from a minimum of 5 crores (face value).
Advantages of investing in a CD, vis-à-vis a Bank’s fixed deposit
- CDs normally give a higher return.
- CDs are rated by approved rating agencies (e.g. CARE, ICRA, CRISIL, FITCH).
- CDs can be traded in the secondary market, depending upon demand.
Disadvantages of a CD, vis-à-vis a Bank’s fixed deposit
- No interim redemption can be sought from the Bank.
What is a CP ?
A CP is a short term security (7 days to 365 days) issued by a corporate entity (other than a bank), at a discount to the face value. Invest in CPs starting from a minimum of 5 crores(face value).
Advantages of a CP
- CPs normally give a higher return than fixed deposits & CDs.
- CPs are rated by approved rating agencies (e.g. CARE, ICRA, CRISIL, FITCH). We deal in investment grade scrips only.
- CPs can be traded in the secondary market, depending upon demand.
Disadvantages of a CP
- A CP may become illiquid and may be required to be held till maturity. No interim redemption can be sought from the Company.
- An element of credit risk is attached to a CP as it is an unsecured instrument not backed by any assets. We therefore offer investment grade CP’s only.
What is a Corporate Bond ?
Corporate Bonds are issued by public sector undertakings and private corporations for a wide range of tenors ranging from 3-15 years. Invest in Corporate Bonds starting from a minimum of 10 lacs(face value).
Advantages of Corporate Bonds
- Corporate bonds generally offer higher returns than Government Securites, fixed deposits, CD’s & CP’s.
- Corporate bonds are rated by approved rating agencies (e.g. CARE, ICRA, CRISIL, FITCH). We deal in investment grade scrips only.
- You can invest in a sector of your choice & blue-chip corporates with sound credit- quality to meet your investment objectives.
- Corporate bonds provide you with a steady income stream.
- You can lock-in high rates for a long period of time( 3-15 years)
- Secondary market trading is possible, depending upon demand.
- No TDS deduction as per Budget Announcement for 2008-09.
Dis-advantages of Corporate Bonds
- They are generally unsecured and therefore have an element of credit risk.
- All Corporate bonds are not actively traded.
- While interest rate is generally fixed, all debt securities are subject to market risk, i.e. the price at which they are traded could vary.