"We are a Financial resource to give you the confidence to make informed decision."
 
 
 
 
NSE
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed Deposits
 
Fixed Deposits in companies that earn a fixed rate of return over a period of time are called Company Fixed Deposits. Financial insstitutions and Non-Banking Finance Companies (NBFCs) also accept such deposits. Deposits thus mobilised are governed by the Companies Act under Section 58A. These deposits are unsecured, i.e., if the company defaults, the investor cannot sell the documents to recover his capital, thus making them a risky investment option.
 

Benefits of investing in Company Fixed Deposits

  • High interest
  • Short-term deposits
  • Lock-in period is only 6 months
  • No Income Tax is deducted at source if the interest income is up to Rs 5,000 in one financial year
  • Investment can be spread in more than one company, so that interest from one company does not exceed Rs. 5,000
Like most investment option, Company Fixed Deposits are a mixed bag. Company FDs can be an interesting investment option if you know how to select the right FD, and how to avoid the no-so-good ones. Here are some of the points that investors should keep in mind. Spread your 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. Try not to put more than 10% of your total investments in one particular company. Choose the Right Period of Deposit
 
Ideally, the investment should be for 1 to 3 years depending upon the rate of interest. Periodic Review
 
The performance of the companies should be reviewed at maturity. This will help you decide whether to renew or reshuffle the deposit. It is also wise to keep a track of these companies by checking their share prices, annual reports and other details reported in newspapers.
 
 
 
 
For more information, please do contact us.
 
About Us Services Resources Get in Touch
Company Profile Financial Planning Financial Calculators 12-A & 19-A, Shanti Bhawan, Ground Floor, Bank Mod,
Core Team Retirement Planning Knowledge Center Dhanbad - 826001, Jharkhand (India)
Testimonials Tax Planning Important Links Call: +91 326 2305305 / 2301350 | E: info@investorspointonline.com
     
2010 - investorspointonline.com. Disclaimer. This site is best viewed in Chrome, Firefox and Safari Browsers.