5 Reasons why you Should Invest in Company FDs!

By Internal Eseo - March 23, 2018

Mr. Amarjeet Singh Khurana, a New Delhi resident, wanted to invest some money to make it work for him as both grow gradually. He has learned about bank’s fixed deposit and invested in it for a period of 1 year.

He also learned about an online non-banking finance company (NBFC) offering more interest based payouts than the bank FD. He immediately canceled his bank fixed deposit account and opened a company FD and could gain many benefits.

If you want to make your money work for you, you can also invest in a feature-rich company FD and see your money grow.

Company FDs have Benefits Galore

1)    Higher Interest Payouts

Compared to a bank fixed deposit account, a company fixed deposit can offer higher ROI. Yes, you can expect a leading online non-banking finance company to provide you interest as high as 7.85%. If you are a senior citizen, you can expect more ROI as high as 8.20%. You can choose between a cumulative and a non-cumulative fixed deposit payment as per your preference.   

2)    An Enhanced Security

Although a bank’s fixed deposit scheme is safe as it has the security of Reserve Bank of India (RBI) up to Rs.1 lakh in case of non-payment of interest payout. That does not make company FDs less rewarding. The company fixed deposits are also marked by a higher degree of credibility and safety as it has CRISIL’s and ICRA’s stable and security ratings to make your investments absolutely safe.

3)    Wider Tenor

A company fixed deposit plan offers you a wider tenor to make your FD investments even more profitable as you can easily make it flexible. A company FD offers you a tenor as flexible as 12 months and 60 months. If you don’t like an FD term, you can easily end it, and open a new one.

4)    Taxation

If you want to save taxes up to Rs.1.5 lakh on your accumulated fixed deposit interest payouts, you can open a tax saving FD for a period of five years. In a tax saving FD, your investment will be locked down for a period of five years, and you won’t be able to break it prematurely. Also, there is no provision for availing a loan on it. On the other hand, if your FD interest income exceeds more than Rs.10,000 in a year, you will have to pay taxes. You can save it by informing the bank/NBFC beforehand and filing Form 15G or 15H.

5)    Online Services to Help you out

You can apply for opening a fixed deposit scheme with a company online and save time and effort. What’s more, you can also avail an FD calculator online on a company website to know your exact FD ROI after the completion of the tenor. You can get it by entering your deposit amount and the tenor to know how much you will gain. Another added benefit of opening your fixed deposit scheme is that you can get access to all the details of your FDs on the customer portal of the company. It helps in keeping track of your fixed deposit accounts from almost anywhere and 24x7.

The Bottom Line

Now that you are aware of the many impending features and benefits of a company fixed deposit scheme, you could go ahead and get one for your money to overgrow. Opening a fixed deposit scheme offers sure-shot ROI as the interest payout is not affected by market fluctuations as in the case of mutual funds. Good luck! 


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