Corporate Fixed Deposit
A Corporate Fixed Deposit is a type of investment that is offered by the NBFCs or the financial institutions. The return i.e. the interest on this Fixed Deposit is usually higher than fixed deposits offered by banks. The investors can choose the tenure, which ranges from 1 year to 7 years and also the interest frequency according to their requirement. The investor does not get any tax benefit on the amount invested or on the earned interest.
Features
- Any Indian citizen who is above 18 years of age can open a Corporate Fixed Deposit account.
- For those who are below 18 years of age, a guardian can open the Corporate Fixed Deposit account on the behalf of the minor.
- INR 1000 is the minimum investment required and there is no upper limit to the investment.
- The Corporate Fixed Deposit account can be an individual or a joint account.
- The nomination facility is also available.
- The account holder can also make premature withdrawals.
In this case, the credit rating of the company which is offering a Fixed Deposit scheme, is very important. It is advisable to the investors to to opt for the companies that have an AA or AAA rating. A company that has a lower credit rating can be a risky option for the investors.
