Fixed Deposits in companies that earn a fixed rate of return over a period of time are called Company Fixed Deposits.

The corporate fixed deposit is governed by section 58A of the Companies Act. Company fixed deposit is a good option for investment as they provide higher rate of interest compared to bank deposits.

They are a good source of regular income by means of monthly, quarterly, half-yearly, or yearly interest incomes. Performance of the company should be reviewed from time to time and at the maturity of deposit, by analyzing Balance Sheet & Share Prices movement. This will be helpful in deciding whether the deposit should be renewed or not.

BENEFITS

• Higher rates of interest.
• Flexible tenure ranging from 1 year to 10 years.
• Senior citizen benefits available.
• Prematurity clause is available.
• Loan Facility Available.
• Nomination facility available.
• No TDS in case the interest is only Rs. 5000 in one financial year.
• Regular interest incomes – Monthly, Quarterly, Half-yearly, or Yearly.