Deposit(s) in Companies that earn a “fixed rate of return” over a period of time are called Company Fixed Deposits. Financial Institutions and Non-Banking Finance Companies (NBFCs) accept such deposits. Acceptance of deposits by companies are governed by the applicable pro visions contained in the Companies Act, 1956 (soon will be governed by the Companies Act, 2013) and the Companies Acceptance of Deposit Rules (currently, Companies (Acceptance of Deposit) Rules, 1975. In due course, the new Rules under the Companies Act, 2013 is expected to be notified). These deposits are currently unsecured in nature. However, there are certain proposed provisions included in the Companies Act, 2013, wherein it is likely that the said deposit could be secured.
Fixed Deposit is one of the safest investment avenues, which can help you grow your savings, while offering stability and safety of principal amount. By investing in FD, you can take control of your investments, with greater flexibility, assured returns and high stability.
Anyone can choose tenor between 12 months and 60 months, as per his financial needs.
Features and Benefits
Company Fixed Deposits offer comparatively higher returns than banks.
Choose the best tenure for you from a wide range as per your convenience. You can choose how frequently you want to receive your interest payments:
Company Fixed Deposits are non transferable that means there is no fear of FD receipt being stolen. In case it falls into wrong hands, it cannot be misused.
Premature encashment of deposit is available any time subject to payment of prescribed penalty.
Diversify Risk- The deposits should be spread over a large number of companies engaged in different industries. This way, you’ll be able to diversify your risk among various industries/companies.
Wide Choices- Many companies operating in the Company Deposit market. This will help you decide whether to renew or reshuffle the deposit.
Attractive rates as applicable from time to time.