SBI FD for Sr Citizens against Corporate Bond of TATA STEEL LTD

POSTED BY shan ON January 30, 2014 11:50 am COMMENTS (3)

I have 10 lakhs FD with SBI and am getting 9.75% interest, which I am getting every month.

I have been advised to move this to Corporate Bond of Tata Steel Ltd @11.5% perpetual which is available now at Rs.10,72,500.  I am told I will be getting every half year Rs.57,500.

Kindly advise whether it is okay to do this.  I am a senior citizen and my current income is below tax bracket.

With regards,

T Shanmughan

3 replies on this article “SBI FD for Sr Citizens against Corporate Bond of TATA STEEL LTD”

  1. ashalanshu says:
    January 31, 2014 at 3:58 pm

    Dear Shan, in debt space, no instrument is there to beat inflation.

    thanks

    Ashal

    Reply
  2. shan says:
    January 31, 2014 at 1:30 pm

    Thank you Ashal for your prompt response.

    I had the same concern and I was told it is tradeable!

    Is there any other instrument to beat the inflation?

    Regards,

    T Shanmughan

    Reply
  3. ashalanshu says:
    January 30, 2014 at 2:50 pm

    Dear T Shanmughan, do you really think that moving your money ‘ll be great idea? In case of FD, the liquidity is immediate, which is not the case with Corp. Bond. Add the safety issue and then decide.

    Thanks

    Ashal

    Reply

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