Most of the people are aware about the fixed deposits offered by the banks but only a few are aware about the fact that even the companies offer this facility in order to raise money, it is because this concept is relatively newer to the Indian investors.
The most lucrative benefit that that the company deposits have over the term deposits is the rate of returns, an investor can earn considerably more with company deposits as compare to the latter, but with such investments risk is also involved.
Bank deposits are the safest mode of investment, even if the bank is unable to make payments in that case also The Deposit Insurance and Credit Guarantee Corporation provides assurance of returns of upto 1 lac while there is risk involved in investing with company deposit in case the corporate entity defaults.
If a person intends to invest with company deposits there are a few things that the investor must make sure which can help him to make safer investments. The fist thing that he must check is the credit worthiness of the company and its financial performance over the years and along with that the rate if return also needs to be checked.
A company offering unbelievable rate of returns must be avoided because risk may be higher with that company, the best way is to invest with well reputed and established companies which are offering reasonably good interest rate over the deposits and hence a person can earn higher than bank deposits.
3 comments:
Another thing to note is that Company Fixed Deposits are NOT as liquid as Fixed Deposits. In most cases, premature withdrawal is not allowed before three months. If you wish to withdraw between the third and sixth month, you may not get any interest at all.
if I dont have PAN card and I want to do FD so what's policy for that? and how many FD I can keep without PAN Card? and if I must need PAN card for FD, Do I need to pay tax ?
please help me I'll appreciate.
thanks.
It's simple process for new PAN card
without Pan you can't open your Bank account also
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