What is Fixed Deposit ?
Fixed Deposits (FDs) are a type of investment offered by banks, post offices, and even corporates. Fixed deposits are considered to be one of the safest modes of investment.
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Fixed Deposit
Fixed Deposits are one of the oldest and most common methods of investing. When it comes to assured returns, choosing the right type of savings scheme makes all the difference.
Fixed Deposits let you make the most of value-added benefits as you create wealth at low risk.
Fixed Deposits in companies that earn a fixed rate of return over a period of time are called Company Fixed Deposits.
Investing in an FD is perhaps the most common financial advice given in our country. This is maybe because FDs offer a fixed rate of return and are viewed as a superb option to save and grow your wealth.
Types of Companies offering Fixed Deposits
- Financial Institutions
- Non-Banking Finance Companies (NBFCs).
- Manufacturing Companies
- Housing Finance Companies
- Government Companies
Features and Benefits
Company Fixed Deposits offer comparatively higher returns than banks.
Choose the best tenure for you from a wide range as per your convenience. You can choose how frequently you want to receive your interest payments:
- Maturity
- Yearly
- Half Yearly
- Quarterly
- Monthly
Company Fixed Deposits are non transferable that means there is no fear of FD receipt being stolen. In case it falls into wrong hands, it cannot be misused.
Premature encashment of deposit is available any time subject to payment of prescribed penalty.
Diversify Risk- The deposits should be spread over a large number of companies engaged in different industries. This way, you’ll be able to diversify your risk among various industries/companies.
Wide Choices- Many companies operating in the Company Deposit market. This will help you decide whether to renew or reshuffle the deposit.
Attractive rates as applicable from time to time.