FIXED DEPOSITS:
Company Fixed deposits earn a fixed rate of return over a period of time.
Financial institutions and Non-Banking Finance Companies (NBFCs) also accept such deposits.
Deposits thus mobilised are governed by the Companies Act under Section 58A. These deposits are unsecured,
and hence in-case of any default by the company , the investor cannot sell the company to recover his capital,
thus making it a risky option of investment. Company Fixed Deposits are adequate for regular income with
the option to receive monthly, quarterly, half-yearly, and annual interest income. Moreover,
the interest rates offered are higher than banks.
CONCEPT:
The term Fixed Deposit refers to a savings account or certificate of deposit that pays a fixed rate of interest until a given maturity date. Funds placed in a Fixed Deposit usually cannot be withdrawn prior to maturity or they can perhaps only be withdrawn with advanced notice and/or by having a penalty assessed.
ADVANTAGES OF FIXED DEPOSITS:
The advantages of investing in a Mutual Fund are:
- Safety
- Regular Income
- Return Potential
- Easy to raise Loan
- Flexible Maturity Date
- Choice of schemes
- Tax benefits
- Well regulated
Click Here for Fixed Deposits Form Downloads
