In today’s markets, there a myriad investment opportunities available to people in India but of them all there is one which has been a favoured instrument in the country for ages. This instrument is known as the fixed deposit or term deposit. Imagine, if you will, that you find yourself flush with a lump sum of money which you intend to save and want it to grow but don’t want it to be at risk in any way. This is where the fixed deposit comes in because you can take that money and give it to a bank for a specific period of time ranging from 7 days to 10 years. Once the money is with the bank, it starts earning an interest that is based on the duration of the deposit and can go to rates as high as 9% per annum, depending on the bank and the scheme. Once the deposits tenure is over, the bank returns the money to you along with all the interest that it has earned. Other than safe and steady growth, the fixed deposit also offer features like extra interest rates for senior citizens, no limits on how much can be invested in the FD and even tax benefits if the investment is made in a tax saving fixed deposit; all of which make a favourite among investors in India.
Features of Fixed Deposit Account
- The main purpose of fixed deposit account is to enable the individuals to earn a higher rate of interest on their surplus funds (extra money).
- The amount can be deposited only once. For further such deposits, separate accounts need to be opened.
- The depositor is given a fixed deposit receipt, which depositor has to produce at the time of maturity. The deposit can be renewed for a further period.
- As per the Traditional scheme, the interest on the FD account is credited to the Savings account specified by the depositor on a monthly basis or on a quarterly basis. For the Reinvestment scheme, the interest is compounded to the principal amount on a quarterly basis.
Corporate Fixed Deposits are best suited for investors who want to earn handsome fixed returns on their investments. Being market leader our rich menu has selected only AAA rated companies, have high credit ratings and a good track record of repayment who provide stability to your portfolio amid volatile markets.
How to choose a Corporate Fixed Deposit?
- Credit Rating: It indicates the underlying risk of the company. Hence it is better to opt for highly rated FDs
- Company Background: It can be assessed through its financials and the viability of its business
- Repayment History: Companies with a better repayment history are a safer bet for investors
List of Best Fixed Deposits :
|1.||Bajaj Finance Ltd||FAAA By CRISIL & MAAA By ICRA|
|AAA By CRISIL & ICRA|
|3.||LIC Housing Finance Ltd||FAAA /Stable By CRISIL
|4.||PNB Housing Finance Ltd||FAAA By CRISIL
|5.||Dewan Housing Finance Ltd (DHFL)||AAA (FD) By CARE and BWR FAAA By Brickworks|
|6.||Mahindra & Mahindra Financial Services Ltd||FAAA By CRISIL|
|7||Shriram Transport Finance||FAAA By CRISIL & MAA+ By ICRA|