In India, the fixed deposits hold the status of the safest and the most trustworthy investment tools. Well, why not? Investment in the said facility is 100 percent safe. The principal amount remains unaffected by market fluctuations and the depositor gets the promised amount at the time of maturity. In addition and opposed to the prevailing myth, the fixed deposit can also cover the effect of inflation given the investment was initially done in the right place. For instance, Bank FDs no longer remain a viable solution, neither for long-term nor for short-term. The real rate of return is relatively lower and the returns hardly cross the mark of 2% per annum. On the contrary, the company fixed deposit offer up to 8.40% per annum; leading to a real rate of return in between 3-4% with the same degree of flexibility and safety.

Taking a cue from the same, it’s high time people give up their preconceived notions about FD: Bank FDs are safer than Company FDs and make the right choice. Take a look at the perks of investing in company fixed deposits.

  1. Competitive interest rates: As shared above, company FD schemes offer higher ROI compared to the schemes from the banks. For instance, Bajaj Finance offers 8.40% per annum interest rate on Fixed Deposit. In addition, the company offers an additional interest of 0.35% per annum for senior citizen and 0.25% per annum for existing customers (on renewal) over and above the offered interest rate.
    • Minimal risk: CRISIL rates the trustworthiness of investment schemes offered by banks and NBFCs as well. You can check the rating of the scheme you are planning to choose and ensure the highest degree of safety.

    Last but not the least, check all the clauses before investing. Make sure what you are choosing is the best for you in all aspects.