Bangalore:Inflation is in the double-digit territory and bank FDs are, at best, fetching merely 7-8 percent interest per annum. So, the real return from bank deposits is negative, which has led to lot of people making a beeline for company FDs that offer a slightly higher return than bank FDs.Company FDs have seen a renewed interest and higher flows from investors in the past one month. The Sensex has moved from 8000 to 19000,unexpected windfall for many investors, making them a bit nervous about the future course of the market in the process. This has prompted some investors to book profits and invest the money in safe and simple products like company FDs. The problem with company FDs is the presence of dubious players who enter the market time and again. There are companies, mostly on the verge of shutting down, that enter the market with the promise of extremely higher returns. Just because some companies offer better interest than banks, you shouldn’t rush to invest your entire corpus in company FDs. Investors should not put all money in a single company. It makes sense to diversify by spreading deposit across a number of companies and industries to reduce risk. High inflation is eating into the real rate of return from FDs, forcing many investors to opt for company deposits.Typically, an AA-rated company offers around 2 percent higher interest than a bank FD.Always opt for an AA or AAA-rated company, as companies rated below could be risky