Company Fixed Deposits:
Company Fixed deposits are similar to bank fixed deposits which earns you a fixed returns over a fixed tenure. Though similar in nature bank fixed deposits are much secure than company fixed deposits which usually gets set-off by bit higher interest rate.
Due to its unsecured form, Co. fixed deposits it becomes important to be selective in company in which you are planning to have fixed deposit exposure. Also need to check credit ratings assigned by credit rating agencies it is prudent to put deposits in company whose FD's are rated AA or above.
As mentioned earlier rate of returns on Company fixed deposits offered are much higher given the risk factor. Remember higher is the risk for higher returns so only getting higher returns should be base criteria for selecting co. fixed deposits. Thus do the homework for selecting company like credit rating assigned to the instrument please avoid any unrated FD schemes. Next should be the returns provided, unless needed shouldn't opt for regular payouts instead go in for cumulative deposits. Keep tenure of deposits into focus depending on your time to achieve short term goals.
Some of the current ongoing Company fixed deposit schemes are
ICICI home finance. Besides regular payout they offer Cumulative income plan have tenure ranging from 20 months to 84 Months and rate of returns ranging from 7.15 % p.a. to 8.5 % p.a.
Credit Rating: AAA by CARE and MAAA by ICRA.
Mahindra Finance Cumulative scheme offers tenure from 12 months to 36 months with Interest rates from 8% p.a. to 9% p.a.
Credit Rating: FAA
to be continued
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