Corporate Fixed Deposits
It is common to the investors to keep Fixed Deposits with banks for a specified rate of interest for a particular tenure.
Some of the Reputed Companies, particularly Non-banking Finance Companies offer better rate of interest on their Fixed Deposit Schemes when compared to the rates offered by banks.
As a diversification and to take advantage of higher rate of interest, many investors prefer the Fixed Deposit Schemes of some selected companies, apart from the Fixed Deposits kept with banks.
The interest paid on Monthly/Quarterly/Half-yearly/Annual basis by the said companies are directly credited to the bank a/cs of the investors. On maturity of the Fixed Deposits, the investors get refund automatically unless they prefer to renew the Deposits. Eligible investors can submit 15G/15H Forms and avoid Tax Deduction (TDS) on interest.
Premature closure of the Deposits is permitted after a minimum holding period of 3 months, subject to reduction in the rate of interest. For temporary requirement of Funds, the investors can avail loan against the Fixed Deposits.
It will be wise to invest in Fixed Deposit Schemes of well-reputed companies which have a long track record with growing business.
