FD and Bonds

Types of Companies offering Fixed Deposits

• Financial Institutions
• Non-Banking Finance Companies (NBFCs).
• Manufacturing Companies
• Housing Finance Companies
• Government Companies

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: i.e. on Maturity, Yearly, Half-yearly, Quarterly or Monthly
•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 will 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

How to choose a good company deposit scheme?
Don’t go for Companies which offer interest much higher than market. Ignore unrated Company Deposit Schemes. Look at only AA or AAA rated schemes.

Tax Deductions on Company Fixed Deposits
TDS will be deducted when interest payable or reinvested per customer, per company exceeds the amount applicable as per statutory rules in a financial year.