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The point here is that, not all company's are mismanaged or go broke. There are numerous well-performing company's that raise capital by using this FD option. They do it because, it is usually cheaper than borrowing from banks. Banks usually charge a much higher interest rate than what these company's would pay on their corporate FD schemes. So, if the company is a well managed one, with a reputation of stable business and profit earning, then there is a very good probability that you will receive your interest payouts on time and that the company will meet its commitment to repay your deposit at the end of the deposit tenure.

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