Investing In Company Fixed Deposits? 8 Things You Need To Check


BANGALORE: There are a number of investment options for people these days. However, bank fixed deposits (FDs) are still one of the most popular options as here your capital is secure and you get a good amount once the FD gets matured. However, if you are looking for much higher returns, then company FDs are a viable option for you.

Company Fixed Deposits are fast becoming a popular investment option due to the fact that they offer high returns, but you need to exercise utmost caution and take an informed decision. The major benefits of investing in company fixed deposits are high interest, flexibility of tenure and no Income Tax is deducted at source if the interest income is up to 5,000 in one financial year. No matter how lucrative a company FD may be, before investing there are certain points that you should take into consideration:

i11. Liquidity

The lock-in period of a company deposit determines the liquidity of the product. Liquidity means how easily you can withdraw your money. Most of the deposit schemes have an initial lock-in period of 3 to 6 months. And the interest rates earned may be lesser than that of withdrawal on maturity.