Fixed Deposit

Corporate fixed deposit is a deposit in company for a fixed rate of return over a fixed period of time. The rate of interest is determined by the tenure of the deposit as well as other factors. NBFC’s, Housing Finance & Manufacturing companies accept such deposits. The corporate fixed deposit is governed by section 58A of the Companies Act.Company fixed deposit is a good option for investment as they provide higher rate of interest compared to bank deposits.

They are a good source of regular income by means of monthly, quarterly, half-yearly, or yearly interest incomes.Performance of the company should be reviewed from time to time and at the maturity of deposit, by analyzing Balance Sheet & Share Prices movement. This will be helpful in deciding whether the deposit should be renewed or not.

  1. Higher rates of interest.
  2. Flexible tenure ranging from 1 year to 10 years.
  3. Senior citizen benefits available.
  4. Prematurity clause is available.
  5. Loan Facility Available.
  6. Nomination facility available.
  7. No TDS in case the interest is only Rs. 5000 in one financial year.
  8. Regular interest incomes – Monthly, Quarterly, Half-yearly, or Yearly
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Corporate Fixed Deposits

HDFC Ltd Fixed Deposits

Bajaj Finance Ltd

PNB Housing Finance Ltd