All you want to know about Company Fixed Deposits..!
Company FDs
have gained popularity among several companies as they provide higher rate of
interest and better flexibility compared to the bank fixed deposits. Moreover,
their simple-to-understand features and easy online application makes it
feasible for employees to make the most out of this investment option.
Secure Way to Start for Beginners
Company Fixed
Deposits are the most secured way to start with if you are beginner. Company
fixed deposits are not affected by market fluctuations. Also, they do not lead
to loss of revenue due to crashes. Being new in the market and amateur at
investment schemes, beginners need a little more experience before investing in
bigger schemes. Hence, company FD are a good option for the start.
Invest Small Receive Big
Many finance
companies allow opening an FD account with as small amount as Rs 25000. Those
willing to invest with a minimum amount can meet this requirement. In addition,
the good news is that despite putting in a small amount, the return that you
receive at the end of the tenor is quite big (depending upon the tenor you
select).
Higher Rate of Interest
When you
think of FDs, bank is what comes to your mind. Apart from banks, there are
several Non-Banking Financial Companies (NBFCs) that offer the facility of
fixed deposits. Here, fixed deposit interest rate offered is higher compared to
the savings accounts or FD interest rate of other banks. For instance, Bajaj Finance fixed deposit offers 8.2%
interest for senior citizens and 8.15% for clients who have availed loan
facility with them. For new investors, they offer 8.05%, which is the highest
fixed deposit interest rate in the market.
No TDS on Company Fixed Deposits If…
If the
interest on your FD is less than Rs.5000 in a year, no TDS is levied. Hence, as
an investor you are at a benefit, if the interest amount does not exceed the
limit. In case, if you observe that your interest amount is exceeding Rs 5000,
you can opt for other similar investment schemes with tax exemption.
Track Record of the Company
Before
investing your hard-earned money in any of the companies, it would be advisable
for you to check their track record. Although the companies may offer higher
rate of interest, a background check about the reputation of the company and
their performance in the market always helps. The better the company and higher
its value in the market, the more benefits you earn. Being a valuable asset,
FDs can be pledged to the bank to avail the facility of Loan against
Securities.
Easy Application
With all the
financial companies going digital, it is now easier to avail the facility of
company fixed deposits with a click. The online application process can help
you apply for loan sitting at home, and have the documents collected by the
company’s representative at your convenience. The entire process being a
transparent one, gives you no reason to be skeptic about your investment. The
online application process is designed especially for senior citizens, students
and homemakers who cannot stand in the long queues or travel long distances.
Cumulative/Non-Cumulative – The Choice is
yours
Making this
choice depends upon your financial requirement. If you are willing to receive
the whole amount of interest at the time of maturity, you can opt for
cumulative fixed deposit. However, if you are willing to enjoy the interest on
monthly, quarterly, half-yearly or annually, you can choose non-cumulative
fixed deposit. So, choose smart to live smart!
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