These deposits are provided by corporate companies. While banks in India typically offer fixed deposit services, non-banking institutions also offer similar products to investors. Corporate entities involved in various businesses may issue deposit certificates to raise capital for their operations. These deposits often have higher interest rates than those offered by banks, making them attractive to investors. A well-chosen corporate deposit scheme can yield great returns, though there is a slightly higher risk associated with them.
Types of Companies Offering Fixed Deposits:
- Financial Institutions
- Non-Banking Finance Companies (NBFCs)
- Manufacturing Companies
- Housing Finance Companies
- Government Companies
Features and Benefits
- Higher Returns: Company fixed deposits usually offer higher returns compared to banks.
- Flexible Tenures: Choose from a wide range of tenures according to your convenience.
- Interest Payment Options: Select how often you want to receive interest payments—on maturity, yearly, half-yearly, quarterly, or monthly.
- Non-Transferable: These deposits cannot be transferred, so there's no risk of the FD receipt being stolen or misused if it falls into the wrong hands.
- Premature Encashment: Available at any time, subject to a penalty.
- Risk Diversification: Spread your deposits across multiple companies in different industries to diversify risk.
- Wide Choices: Many companies offer fixed deposits, allowing you to decide whether to renew or reshuffle your investment.
- Attractive Rates: Interest rates are competitive and can vary over time.
