Service Details

Corporate 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.

BENEFITS
§  Higher rates of interest.
§  Flexible tenure ranging from 1 year to 10 years.
§  Senior citizen benefits available.
§  Prematurity clause is available.
§  Loan Facility Available.
§  Nomination facility available.
§  No TDS in case the interest is only Rs. 5000 in one financial year.
§  Regular interest incomes – Monthly, Quarterly, Half-yearly, or Yearly.