Well there are many Corporate Fixed Deposits (FDRs) to invest and the associated terms such as FD coupon rate, FD Annualised return, Tax Rebate, FD Lock in period etc make it more complex.
Not anymore. Talk to our investment experts for a free advice on Corporate FDRs. Get indepth comparison, find the best company FDs to invest in and start investing. Moreover, get a Life time FREE demat account from RMoney, while you invest in FDs and keep your FDRs in demat form.
|Fixed Deposits |
|Fixed Deposits by|
|Who offers this Fixed Deposit (FD)?||Various Banks||Corporate companies|
|What is the rate of Interest in this Fixed Deposit (FD)?||Average Generally a little higher than inflation||High Generally higher than bank FD rates|
|What is the tenure of this Fixed Deposit (FD)?||Ranges from months to years||Generally between 6 months to 3 years|
|What is the risk level of investing in this Fixed Deposit (FD)?||Risk of default is very Low||Risk of Default is more than Bank FDs|
|What is the mode of Investing in this Fixed Deposit (FD)?||Certificate of deposit||Certificate of deposit|
|What is the quality Criteria of this fixed Deposit (FD)?||No Specific Criteria. Only rates differ for bank to bank||Ratings from Independent agencies indicate quality|
RATING & AGENCY
1 YEAR INTEREST RATE
2 YEAR INTEREST RATE
3 YEAR INTEREST RATE
4 YEAR INTEREST RATE
5 YEAR INTEREST RATE
ADDITIONAL FOR SENIOR CITIZEN
MIN. AMOUNT TO INVEST
|Bajaj Finance Ltd||FAAA By CRISIL, MAAA By ICRA||8||8.15||8.50||8.50||8.50||0.35 (upto 1cr)||10000|
|DHFL Aashray Deposit Scheme 13 Months-Trusts Only||CARE-AAA and BWR-FAAA||8.15||-||-||-||-||0.4||50000|
|DHFL Swayamsidha(18 Months) – Exclusively for females||CARE-AAA and BWR-FAAA||18 Months- 8.30||-||-||-||-||0.4||10,000/-|
|DHFL-Aashray Deposit Plus||CARE-AAA and BWR-FAAA||8.15||8.4||8.7||8.7||8.7||0.4||20000(M) and 10000(Q,H,Y),2000(Cum)|
|HDFC -Premium Deposits||CRISIL FAAA/ Stable||8.03(15M)||8.14(22M)||8.08(30M)||8.14(44M)||-||0.25||20000|
|HDFC Ltd.||CRISIL FAAA/ Stable||7.98||7.98||7.98||7.98||-||0.25||20000|
|LIC Housing Finance Ltd.||CRISIL- FAAA||7.55||7.65(18 M) 7.65(24M)||7.7||-||8.1||0.25||10000|
|Mahindra and Mahindra Financial Services Ltd||CRISIL-FAAA||8||8.35||8.5||8.5||8.5||0.25||10000|
|PNB Housing Finance||FAAA/Stable by CRISIL||7.95||8.1||8.35||8.4||8.45||0.25||20000|
|Shriram City Union Finance Ltd||CRISIL-FAAA+ & ICRA-MAA+||8||8.3||8.75||8.75||8.75||0.25||5000|
|Shriram Transport Finance UNNATI Scheme||CRISIL-FAAA & ICRA-MAA+||8||8.3||8.75||8.75||8.75||0.25||10000|
The deposit placed by investors with different companies for a fixed time period & where the deposit carries a predefined rate of interest is called Company Fixed Deposit or Corporate Fixed Deposit. The Fixed Deposits made with the companies are documented in the form of paper receipts which is commonly known as Corporate FDRs (fixed deposit receipts). Financial institutions and Non-Banking Finance Companies (NBFCs) also accept such deposits. Fixed Deposits mobilised by the companies are governed by the Companies Act under Section 58A but these deposits are unsecured, i.e., if the company defaults, as an investor you cannot sell the receipt / document to recover your investment amount.
Companies issue Non Convertible Debentures (NCDs) & Fixed Deposit Receipts (FDRs) both. NCD is more of a tradable investment instrument which combines the features of shares as well as fixed deposits. Company FDRs are more like the fixed deposits with banks, the primary difference being that bank FDs are secured and hence much safer to invest. The key differences between FDRs & NCDs are :
i) Liquidity: NCDs are more liquid as they are tradable at exchange whereas FDs can't be sold in the market. However, bank FDs are also highly liquid unlike corporate FDs and can be encashed even before maturity , subject to penalty.
ii) Safety: While NCDs are secured debt, corporate FDs are altogether unsecured and bank FDs are secured upto Rs one lakh only.
iii) Taxation: FDs give you only interest income whereas in case of NCDs, in addition to interest income, there can be capital gains also. Income from NCDs is not exempted from TDS where as FDs interest income is subject to TDS.
iv) Interest rate risk: Unlike FDs where the rate of interest is pre-fixed and cannot change, NCDs have an element of interest rate risk due to changes in market interest rates some times.
Though Corporate FDRs carry some amount of risk but it doesn't mean that they are not a good investment option. If the company which is issuing collecting the deposit is high on the credit rating, there are several advantages of investing in a Corporate FDs.
The interest rate of company FDs is higher than normal Bank FDs.
Corporate FDs generally have relatively short-term of lock in.
There is a fixed and safe return on investment which gives an edge over equity.
TDS is not deducted if the interest income from one particular company is less than Rs. 5,000/-
You can invest in the FDs of multiple companies to ensure that one company FD does not exceed Rs. 5,000/-, thus you can avoid TDS.
Raghunandan Money brings all the Corporate FDRs to you on a single platform, hence you don’t need to waste your time looking for different companies. You leave it on us to pick the best ones for you and make investing in companies FDs simpler.
Different companies come with the offer to invest in their Fixed Deposits (FDs) from time to time and all these FDs are available with Raghunandan Money. All you have to do is to register with us. We give you a detailed report on the FDs with our inputs as why you should invest in that particular FD. You can contact any of the offices of Raghunandan Money or else just let us know to facilitate the formalities at your door step. For investing in corporate FDs, you don’t require to have a demat account with us and what’s more there are no advisory or facilitation charges involved.
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