Bangalore: With the recovery in the markets and the liquidity crunch easing, the number of investors opting for company's fixed deposit (FD) has decreased. The companies have reduced the interest rates offered on their FDs by at least one percent, making it less attractive for investors as their returns lesser now. According to Economic Times, the interest rate on a three-year FD offered by Tata Motors was 11 percent, while it was 11.5 percent in Mahindra Finance. Now, both of them have reduced their rates to 10 percent. Others like Shriram Transport Finance, ICICI Home Finance, HDFC Bank and Exim Bank have also reduced their deposit rates by 0.5-1 percent. A company FD works similar to a bank deposit where you earn interest income. The Company FDs offer much higher returns than bank FDs, since they involve higher risks. A bank deposit is safe as it has the support of the central government, but these FDs by the companies don't have that backing. With the success of these FDs in the recent times, many companies like Bombay Dyeing, the Jindal Group of companies, Gabriel India and Champagne Indage have started pushing these products with the interest rates ranging from 9-11 percent. After a gap of three years, it was in November 2008 that the companies started raising money through FDs. At that time companies were finding it hard to raise capital from alternative sources and the liquidity situation was also bad. Many investors were attracted towards these FDs as they were offered by major companies and the returns were better. The FDs were also looked upon as a safer option by the investors as the markets had plunged after reaching the 20,000 mark.