Best Corporate Fixed Deposits
Just like banks, private companies or non-banking financial companies also collect deposits for a fixed tenure and at a fixed interest rate. These deposits are known as Corporate Fixed Deposits or Company Fixed Deposits.
EldersWealth brings you a range of Corporate Fixed Deposits (Corporate FDs) of different institutions, tenures & interest rates. These Corporate FDs provide guaranteed returns and the interest rates offered are relatively higher than traditional bank fixed deposits and even a little higher for senior citizens. Therefore investors looking for relatively higher earnings than traditional bank deposits should invest in Corporate FDs.
Although the minimum lock-in for most company FDs is 6 months, you can select the tenure as per your requirement. The penalty period on early redemption/withdrawal for Corporate FDs is lower than typical bank fixed deposits.
EldersWealth is a unique platform where we offer some of the best corporate FDs which are highly-safe and quality investment options to meet your investment goals. It is important to pick companies with a stable and high credit-rating so that you can avail the dual benefits of returns and safety of capital.
However, there are some things to be considered while picking the right corporate FD.
- Credit profile of the company offering fixed deposit, is the primary element to look after. As credit profile defines the credibility associated with that FD.
- Overall financial health of the company. Understand why the company is raising funds and how it has been doing on the account books in the recent past.
- History of interest payments. You should also check if the company has paid regular interest to its depositors and not defaulted in the past. If there’s a consistent lag in the payment of interest, there might be a financial instability in the firm.
Check out the key elements related to interest rates of company FDs (Company fixed deposit interest rates)
- There are two options for interests payments : Cumulative and non-cumulative interest rates
- The interest rates depend on the total FD tenure.
- Existing FD investors can avail higher interest rates while investing with the same company (not applicable to all companies though)
What parameters to keep in mind while choosing Company Fixed Deposit?
Credit rating: All company FDs have a certain credit rating issued by CRISIL or other rating agency. The higher the credit rating, the more credible is the FD issuer and therefore you should invest in company fixed deposits.
Company Fixed Deposits Interest Rates: Comparing interest rates offered by various Corporate Fixed Deposits is the most practical way to find one of the Best Corporate FDs Amount limit: The minimum & maximum amount which can be put in a Company Fixed Deposit is pre-defined is usually pre-defined and it differs from company to company. EldersWealth is a comprehensive platform where you can check the range of Company Fixed Deposits Interest Rates across various corporates and select the most suitable option for you .
What is the minimum tenure for a Company Fixed Deposit?
The minimum tenure for any Company Fixed Deposit is 6 months (1 year) & it can range up to ten years.
What is the basic process of premature withdrawal of a company FD?
One can withdraw funds from Corporate Fixed Deposits before its maturity by submitting the premature withdrawal form in the respective NBFC and the company will process the request. However, some of the Best Corporate Fds have a lock-in period and mandate investors to stay invested for at least 6 months or a year to encourage saving habit. .
Do I get any tax benefits if I Invest in company fixed deposits? Are there any taxes applicable on company FD investment?
Corporate FD investors do not enjoy any tax benefit. Interest earned on corporate FD is taxable as per the respective tax bracket just like bank FDs. This tax is applicable only if the annual interest earned on company FD is above Rs. 5,000.
How do I buy a company’s FDs?
To invest in company fixed deposits you can either apply online or contact the company where you want make an investment. You can also checkout a wide range of corporate FDs on EldersWealth platform. We are happy to offer any assistance in this regard.
What are the features of Corporate Fixed Deposits?
Some of the Best Corporate FDs offer higher interest rates than bank FDs and also offer the facility of periodic interest payment.
Do corporate FDs carry higher risk? Explain the Risks Involved.
Although interest rate of each corporate FD is fixed, there’s no assurance or guarantee associated with it. The risk of corporate FD depends on the credit rating given to that that respective company.
How Elderswealth helps in planning your investment strategy & invest in company fixed deposits?
EldersWealth can assist you in planning a goal-based investment strategy based on your income, expenses, risk tolerance and multiple other essential factors. It presents a list of various investment options, including company FDs and helps the investors pick the most suitable product for their life stage goals.
How is EldersWealth going to guide customers with the parameters considered to choose the right Corporate FD to invest in?
The research team of EldersWealth is highly resourceful and happy to guide customers regarding their financial decisions, answer and resolve any personal finance related queries.
Why choose EldersWealth for Corporate FD’s?
EldersWealth offers you the range of all corporate FDs and provides an unbiased product listing.
Do senior citizens get a higher interest rate?
Although it’s not a mandatory rule, almost all companies offer special interest rates for senior citizens.
We are more than happy to answer your queries