One of the safest forms of investments tool for many Indians continues to be fixed deposits. FDs as they are more popularly known, keep investors’ money secure by ensuring they get the amount they invested along with the an assured sum calculated from the interest accrued. However, one of the biggest misconceptions people have about FDs is, this investment option can only be availed from banks. What most of them do not know of is that even some companies such NBFCs provide Fixed Deposits.


If you have never invested in Company FDs, below are a few reasons to give this investment vehicle a second look:


It is Similar to Bank FDs - The only difference is - instead of parking your money with a bank, you are parking it with a company or firm which is registered as an NBFC. As mentioned above, the investors get an assured sum of principal and interest at the end of the tenure. It is imperative to park your money with a company or firm which has an AAA rating.

Competitive terms are offered - Apart from offering tenures ranging from 12-60 months, the rate of interest offered is competitive as compared to banks. In fact, investors can even avail loan against the FD. Documentation process requires submission of KYC and other documents.

Though there are many other benefits of Company FDs, most people still prefer to invest with banks, for the simple reason - choice of investments with a bank are more.