Company DepositsAnd it's really easy to invest in them!
What are Company fix Deposits?
Company fix Deposits are simply nothing but fixed deposits in companies that earn a fixed rate of return over a while. Company Fixed deposits are down-to-earth products. The influential advantage of the company deposits is its plain simplicity. It is understood even by the most novices among the investor community.
Have you ever wondered the logic behind why pure vanilla- flavoured ice cream sells more than any other flavour? Similar logic is just as true when it comes to the company fix deposits vis-a-vis many other modern investment options.
Advantages of Company fix deposits :
- Assured return.
- Higher interest when compared to bank deposits.
- Service at your doorstep.
- The Lock-in period in most cases is 6 months only.
- If the interest income is less than Rs. 5000 in one financial year, then NO TDS.
- Company FDs are fixed deposits that are offered by companies and financial institutions.
- They are low-risk investments and do not face the influence of market forces.
- They may be flexible in some cases. This means they you get to choose your tenor or maturity terms.
- They offer non-cumulative and cumulative interest pay-outs.
- They feature safety ratings by credit agencies like ICRA and CRISIL. You can choose one based on how based on how the ratings.
Our suggested company fix deposit details.
RBI Floating Rate Savings BondAnd it's really easy to invest in them!
- 100% Risk-Free Investment
- Interest Payable Half-Yearly In Jan & Jul Each Year
- Interest Rate Set At 8.05% Till Dec 2023
- Minimum Investment – Rs. 1000 (And In Multiples Thereof) Maximum Investment – No Limit
- Floating Rate Of Interest. Is Subject To Change In Jan & Jul Each Year
- Maturity Is 7 Years From Investment Date. Premature Withdrawal For Senior Citizens
- Interest Rate Is Linked To National Savings Certificate (Nsc)
- Not Tradable & Not Transferable
- Bond Will Always Pay 0.35% Higher Than Nsc Rate
- Nomination Facility Available
Eligible Investor Categories For Floating Rate Savings Bond.
- RESIDENT INDIVIDUAL
- HUF
Specific Conditions On Premature Withdrawal For Senior Citizens
Minimum lock-in period from the date of issue as per Investor age bracket:
| Age Bracket | Lock- in- Period |
|---|---|
| 60 to 70 years | 6 years |
| 70 to 80 years | 5 years |
| Age of 80 years and above | 4 years |