In simple terms, corporate fixed deposits are much like bank fixed deposits; however, the two do have differences. More than savings or investments, corporate fixed deposits are money-raising tools for companies. Here, it is the company that offers the investors the maturity amount at the completion of the tenure. Investing in a corporate fixed deposit does provide higher interest rates – one of the prime reasons these are attractive investment options for the public. Corporate Fixed Deposits also have some amounts of risk, however, they are governed by RBI.
Invest Now!If you seek reliable and consistent returns, Fixed Deposits (FDs) and Monthly Income Schemes (MIS) may be the perfect choice for you. These investment options cater to risk-averse individuals who value stability and assured income. Whether you're saving for a particular goal, preparing for retirement, or looking for a dependable source of regular income, FDs and MIS provide a secure refuge for your hard-earned savings.
Get to know more!There are fundamentally two types of risk. Default risk on interest and maturity payment and secondly the interest rate risk.
All individuals over 18 years of age, HUF, Companies, partnership firms, NRI are eligible to invest in corporate FDs.
The process of pre-closure in Corporate FDs is in line with the Bank FDs.
Corporate FDs or Fixed Income Securities offer predictable cash flow and security of the investments. In case of company liquidation – the bondholder gets priority in terms of repayment over equity investment holders. Corporate FDs offer a higher rate of return than Bank FDs. For example – HDFC Bank offers about a 5.5% rate of interest on Bank FDs, HDFC Ltd offers. 6.95 rate of interest on corporate FD. Corporate FDs also offer diversification in terms of investment diversification for investors. The recent development in NCLT law offers higher protection to bondholders. Equity Investment offers growth with uncertainty over cash flow.
Thankfully, these are short-term investment options – a corporate fixed deposit usually offers a tenure that ranges between one to five years.
# Monthly, Quarterly, Half-yearly, Annual & Cumulative income options available.
# Additional interest for Senior Citizens & Women’s.
# An Investor can also get a PREMATURE WITHDRAWAL OR up to 75% INSTANT LOAN on Their FD.
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