Corporate Fixed Deposits

• Higher returns – Enjoy higher returns than Bank FDs through Corporate FDs

• Flexibility – Choose as per your preference from a variety of tenures and interest pay out options such as monthly, quarterly, half-yearly, yearly and Cumulative!

• Liquidity – Enjoy better liquidity with a lower lock-in period than Bank FDs

• Premature Withdrawals – Opting for premature withdrawal in FD means depositors can withdraw their amount and close the account before the term ends.

• Safety – Company deposits are carefully inspected by credit rating agencies.

• Credit Rating: Opt for higher-rated corporate FDs based on its credit rating which indicates the underlying risk of the company.

• Company Background: Assess a company’s business viability by referring to its Financial Statements, Management Discussion, and Analysis (MD & A).

• Repayment History: Companies’ repayment history helps to determine the company’s credit score, credibility, and stability.

• Risk profile: Make sure that the company you pick is financially healthy and helps you rule out any default risk during the fixed deposit period.

• Terms of FD: A cumulative scheme could be better than a regular income option as the interest earned gets invested in other avenues. At the end of the day, you’ll have a lump-sum amount in your hands. But not if you’re looking for a regular income from the FD.

Cumulative as well as non-cumulative schemes are available for deposits.

• Cumulative deposit: The interest gets accumulated and is paid upon maturity along with the principal. It is reinvested every year until maturity. This option gives you the benefit of compound interest for wealth creation.

• Non-cumulative deposit: You can opt for a monthly, quarterly, half -yearly or yearly interest pay-out in this scheme as chosen by the depositor. It will be convenient for pensioners or anyone who require a periodical interest payment.

Only the person(s) who have been appointed as guardian(s) by the competent court should sign the application. A copy of the court order has to be submitted to us.

How you will receive you interest amount depends on the investment scheme you have chosen at the time of opening your fixed deposit account. If your money is deposited under the traditional scheme, the FD interest will be credited to your savings account on a monthly or quarterly basis.

If your money is deposited under the reinvestment scheme, interest will be added to the principal amount periodically for reinvestment and will be compounded as per the time.

The interest amount on your FD can be received on monthly, quarterly or annual basis.

• Yes. You can make a deposit in the name of minor provided such minor is represented by his natural or legal guardian and the application form for the deposit is signed by the natural/legal guardian, on behalf of the minor. All communication in relation to the deposit shall be addressed to the guardian.

• Yes. A copy of the Power Of Attorney is to be obtained and filled by the depositor.

• Yes, most banks and other financial institutions offer senior citizens higher rate of interest on their fixed deposit accounts. They are liable to get this benefit even if they open a fixed deposit account with a co-applicant who is not a senior citizen.

• TDS(Tax Deduction at Source) is not applicable to the interest earned up to Rs. 5,000 to 10,000 (depending on the financial institution). If the investor’s total income is lower than the taxable limit, they can furnish Form 15G/15H at the time of opening a FD account to avoid tax deduction.

• Yes. Keeping the unforeseen circumstances in mind, the banks and other financial institutions offer nomination facility to the depositor. If the depositor dies, the nominee can lay claim to the fixed deposit amount on maturity. This can, however, vary on the basis of the mode of holding.