I am looking at buying a bank corporate bond instead of placing money into a savings account.
Say I buy a 2 year maturity corporate bond, that yields exactly 2% per year (in terms of yield to maturity, so taking into account whether it's above or below par).
If the bank default, in which orders will funds be repayed? First to the depositor of the savings account, or to the corporate bond holders? Or do they have the same level of maturity?
If the savings I get from the savings account is 1%, it sounds better to me to buy the corporate bond, if they have the same level of seniority. Is that right, or am I missing something?