Benefits of Company Fixed Deposits
- Higher interest rate: The rate of interest is 2-4 percent high, as compared to the
interest rate offered by banks on fixed deposits
- Regular income: Depending on the scheme, investors have the option to
receive interest at monthly/quarterly/half-yearly/yearly intervals
- Lock-in period: The minimum lock-in period for most of the schemes is six months, i.e.
investors can withdraw their money post six months, anytime
- TDS: TDS is not applicable if interest earned is equals to or less than 5,000 for a
year in a single company.
Points to keep in mind before investing
Investors must carefully read the application form
Check the rating of the company before investing
Do a background check of the company before putting money into it
Companies may change the interest rates on the fixed deposit schemes without any prior notice