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 :
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.
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.