Company Deposits

Like bank fixed deposits, a company fixed deposit is a deposit with companies, typically non-banking finance companies(NBFC) at a fixed rate of return over a fixed tenure. The rate of interest depends on the maturity of tenure. Company fixed deposits are a great way to raise funds from the general public for many firms/companies. These term deposits are usually rated for their credibility by a number of rating agencies such as ICRA, CARE, CRISIL, etc.

Benefits

• Higher interest rates: The best thing about a company FD is the interest rate. The rates paid are comparatively much higher than what is paid for an average bank FD.
• Periodic interest payment options: There are a number of interest payout options to choose from such as monthly, quarterly, half-yearly, and yearly.
• Credit ratings: Almost all company FDs are rated by autonomous agencies such as ICRA, CRISIL and CARE. This offers customers a chance to go for a well-rated FD.
• Easy loans: Most of the company FDs give easy loans up to 75% of the maturity amount. The penalty for premature withdrawal is minimal which is another option for easy liquidity.