Corporate Fixed Deposits
Corporate Fixed Deposits are investment instruments offered by companies, providing higher interest rates compared to traditional bank fixed deposits. These deposits are suitable for investors seeking better returns with moderate risk. By locking in your funds for a specified period, you earn regular interest income, making Corporate Fixed Deposits an attractive option for those looking to enhance their savings.
Features of Corporate Fixed Deposits
Fixed Tenure - Pre-determined maturity period of 1, 2, 3, 4 and 5-years
Safety and Security - Reasonably safe and secure since they have the right of settlement ahead of payment to shareholders.
Investment Amount - This can be opened with a minimum investment amount, which varies across issuers. There is generally no upper limit on the deposit amount, allowing individuals and organizations to invest a substantial sum.
Interest Payment Frequency - The frequency of interest payments varies among issuers, with options such as monthly/quarterly/half-yearly / annually or compounded till the time of maturity.
Auto-Renewal - Upon maturity, fixed deposits can be automatically renewed for another term unless instructed otherwise by the investor. This feature ensures continuity and convenience, allowing the investor to earn interest without the hassle of initiating a new deposit.
Suitability - Fixed deposits are suitable for conservative investors seeking capital protection.
Interest Rates
