Fixed Deposits
Fixed Deposit for Your Future!
What are
Corporate Fixed Deposits?
Fixed Deposit is the most popular investment choice in India. Like Banks, RBI permits selective
corporates & NBFCs to accept deposits for a fixed interest rate and tenure. Such deposits are
called Company or Corporate Fixed Deposit.
In these times of high market volatility and uncertain returns, Corporate FDs help you secure
your future financially with fixed, predictable returns. Investors can choose to earn regular
income with pay-out option or accumulate capital through cumulative option.
A number of rating agencies, including ICRA, CARE, and CRISIL, evaluate the credibility of these
term deposits. At Fin System, we offer investors access to “AAA”-rated corporations, which
stand for high safety and low risk. These company fixed deposits are governed by Section 58A
of the Companies Act.
Eligibility Criteria for
Corporate Fixed Deposits
Investing in a Corporate FD online or offline is easy. To get started, check out the eligibility
criteria. Below is the list of eligible individuals/entities that can apply for a Corporate Fixed
Deposits:
- All individuals with the requisite identity and address proofs.
- Members of Hindu Undivided Families (HUF).
- Clubs that have registration and PAN details.
- Corporates
- Associations and societies that have proper registration documents.
- Registered educational institutions
Who Should Invest in
Corporate Fixed Deposits?
Corporate Fixed Deposits are good options for both short and long-term goals. Compounding
ensures capital appreciation, especially in long-term investments. However, Corporate Fixed
Deposits could also significantly work well in the short term if you are saving money for a
particular goal.
6 Reasons to Invest in Corporate Fixed Deposits
Fixed Returns and Capital Protection
Invest with 'AAA' rated Corporates which offer High Safety & Low Risk
Flexible Investment Tenure and
Interest Payment Frequency
High Interest Rates.
- 0.50% additional interest for Senior Citizens
- 0.25% additional interest on All Renewals
- 0.10% additional interest on Women Depositors
Ideal for Regular Income or Accumulating Capital
Easy Loans Against Fixed Deposits
Frequently Asked Questions (FAQs)
The returns from Corporate FDs are added to your income and taxed according to the tax
bracket your income falls in. For instance, if your income is Rs. 5 lakh and you get Rs. 1 lakh
returns from an FD, your total taxable income becomes Rs. 6 lakhs. Senior citizens however
do get a tax deduction of up to Rs. 50,000 on the interest earned on the FD.
You need a valid government-approved identity and address proof such as an Aadhaar card,
Passport or Voter ID to apply for a Corporate FD.
You can apply for premature Corporate FD withdrawal any time after your investment. But
penalty charges may apply if you close too soon to the booking date. However, if the FD is
prematurely closed, before completing 7 days from the date of the booking, the bank or the
company is not liable to pay any interest.
There are two interest payment options: cumulative and non-cumulative. If you choose the
former option, your returns will be reinvested and paid to you only at the time of maturity. In
the case of the non-cumulative option, the interest will be paid to you at regular intervals.
Yes, loans against fixed deposits can be obtained without difficulty.
NRIs can invest in fixed deposits at some corporate entities.
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