Fixed Deposits

A safe way to grow your money

Fixed Deposit is an amount of money on deposit with Financial Institutions for a fixed term at a rate determined by the term and other factors. Fixed deposits in companies that earn a fixed rate of return over a period of time are called Company Fixed Deposits. Primarily, financial institutions and Non-Banking Finance Companies (NBFCs) also accept such deposits. Deposits thus mobilized are governed by the Companies Act under Section 58A.

Company Fixed Deposits are adequate for regular income with the option to receive monthly, quarterly, half-yearly, and annual interest income. Moreover, the interest rates offered are higher than banks.

Why opt for Fixed Deposits?

	High Safety - since most of these instruments are rated

	Attractive Returns

	Stable and Fixed Source of Income

	Better rates for Senior Citizens

	High Service Standards

	Nomination Facility

	High Liquidity - Most of these issuers offer 75% of the investment amount as loan @ 2% over the interest rate on the deposit as well as pre-mature withdrawal

	Potential to earn compounding interest by reinvesting the principal amount along with the interest earned during the period

	Flexible Tenure - most of the issuers offer various tenures ranging from 1 year to 7 years

	Convenience of interest frequency - Most issuers offer monthly, quarterly, semi- annual , annual or cumulative deposits

	Simple operational process - no requirement of PAN

	Direct ECS credit facility for interest payments or advance interest warrants for the year issued by most of the companies

	No TDS for interest payment upto Rs 5000/- per financial year