Friday 19 July 2024

Where and How to Buy Company Fixed Deposits in India?

Where and How to Buy Company Fixed Deposits in India?

Need money to finance your Europe trip or for securing funds to purchase your dream car? A fixed deposit account allows depositors to guarantee large deposits over a considerable time with additional interest payments. Typically, interest payments on FD accounts are higher than savings deposit accounts. An FD calculator helps to estimate your matured amount depositors will receive on maturity.

Where to Deposit your Money as FD?

Banks and financial institutions have provisions for fixed deposit accounts for a minimum of INR 25,000. Interest rates for senior citizens are infinitesimally higher. However, if depositors wish to extract maximum payments from their FD on maturity, they might choose to settle for company fixed deposits. They offer higher rates of interest than nationalised banks. Provisions for non-cumulative FD accounts allow depositors to withdraw interest payments monthly, quarterly or bi-annually. The received interest payments are then transferred to their savings account.

Where and How to Buy Company Fixed Deposits in India?

Studies reveal that FD interest rates for company fixed deposit accounts usually are 1-3% higher than that offered by banks. Additionally, if depositors choose to withdraw their deposits before maturity, they are liable to pay a minimum penalty. Bajaj Finserv takes pride to announce its cumulative/non-cumulative fixed deposit accounts open to depositors. With reasonably high interest rates up to 8.75%, depositors can easily accumulate wealth depending on the time they hold their deposits.

Salient features worth mentioning:

Among most company fixed deposits accounts, Bajaj Finserv is stable and reliable. For a minimum deposit of Rs.25,000, accumulating considerable sums is a piece of cake. Concerning reliability and credibility, Bajaj Finserv has obtained ICRA’s MAAA rating and FAAA stable rating. This guarantees uninterrupted consolidated payments on maturity. Additionally, depositors can store their deposits for 12-60 months depending on their choice of liquidity versus higher returns.

Word of caution:

Provision for fixed deposit accounts by banks and financial institutions registered under RBI are more secure. Many non-banking financial institutions and companies offer fixed deposit account options luring depositors with higher interest rates. Brokers help initiate such deals and often turn out to be forged. Bajaj Finserv advises potential depositors to carefully check credentials of the institution and their ratings.

Cherry-picking FD accounts that fit your purpose:

•FD accounts are meant to provide lucrative interest payments for deposits higher than Rs. 25,000 up to Rs. 50 lakhs. Company Fixed Deposit accounts already pay higher inters payments than banks and financial institutions. However depositors should double check Company’s credibility in case it offers incredibly high interest payments to the tune of 30%. Chances are high that such depositors may have risked their money in counterfeit FD and are liable to be consumed by scammers.

•RBI charges taxes for interest payments higher than Rs.5,000. However, for higher deposits that yield higher returns, post-tax returns may turn out to be lower than expected. In spite of higher FD interest rates, inflation and market forces accentuate taxable payments. Depositors may consider themselves better off settling for tax free bonds or mutual funds instead.

•Certain Company fixed deposits run the risk of cash-crunch in case depositors choose to withdraw their FDs prematurely. In the long run, this may prevent them from being able to pay interest payments and the principal amount due to unprecedented liquidity crunch. Bajaj Finserv has earned its reputation owing to its exclusive ability to withstand such liquidity crunches.

Additionally, it takes pride in repaying respective amounts to depositors on maturity without fail. With multiple AAA ratings and adherence to Companies Act 1956, Bajaj Finserv also allows pre-mature closures.