When most people think about fixed deposits (FDs), the first thing that comes to the mind is approaching a bank to open one. However, that is not the only place where you can open fixed deposits. Many finance houses and Non-Banking Financial Companies (NBFCs) also offer investors the facility to open fixed deposits that offer interest rates that can be higher than what most banks offer.
A company FD or company term deposit is nothing but a type of FD that is issued by companies such as finance companies, housing finance firms or other types of NBFCs. Company fixed deposits are a great way to raise funds from the general public for many firms/companies. These time deposits are usually rated for their credibility by a number of rating agencies such as ICRA, CARE, CRISIL, etc.
|Company||Regular FD Rates||Senior Citizen FD Rates|
|Kerala Transport Development Finance Corporation Limited||8.50%||8.75%|
|Gruh Finance Limited||7.75%||8.00%|
|ICICI Home Finance||7.35%||7.60%|
|Who can apply?||
The important things that you need to know about the fixed deposit interest rates offered by non-banking finance companies are:
1. What is the difference between a bank FD and a company FD?
In terms of differences, both are FD accounts and offer the same features. Bank FDs are generally regarded more safer and pay lesser interest rate.
2. Are corporate FDs and company FDs the same?
3. Is there an option for premature withdrawal?
Yes. The deposit can be broken before the maturity period but some NBFCs mandate a longer minimum investment period that may go upto 6 months to a year.
4. How to apply for a company FD?
You can apply for a company FD online or by contacting the firm where you want make an investment.
5. Are FD receipts issued?
Receipts may be issued to those who have applied for an FD offline/by visiting the branch.
6. Are senior citizens eligible to get a higher interest rate?
Yes, in most cases.
7. Is TDS applicable even for such FDs?
8. How is interest paid to the deposit holder?
Interest payments will be credited to the bank account of the customer electronically as per the chosen frequency of interest payment.
9. Can you apply for a company FD online?
In most cases, yes.
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