Corporate Fixed Deposit
Company Fixed Deposit (corporate FD) is a term deposit which is held over fixed period at fixed rates of interest. Company Fixed Deposits are offered by Financial and Non-banking financial companies (NBFCs). The maturities of various company fixed deposits can range from a few months to a few years.
Choose from multiple company fixed deposits options varying in tenures. Interest rates and institutions to suit your investment needs. Avail stable returns and benefit from much reduced volatility through a wide range of AAA and AA rated Company Fixed Deposits. But we as a Company Policy decided not to recommend company fixed deposit below.
Key Benefits of Corporate FDs:
HIGHER RETURNS Enjoy greater payoffs from Corporate FDs as compared to Bank FDs.
FLEXIBILITY Choose Corporate FDs as per your preference from a variety of tenures such as, monthly, quarterly, half-yearly or yearly.
LIQUIDITY Enjoy better liquidity with Corporate FDs with a lower-in period than Bank FDs.
LOWER RISK Avail the benefit of reduced risks with Corporate FDs which are backed by reputed rating agencies.
Tips for choosing a Corporate FD:
Consider these factors before choosing Corporate FD schemes to invest in.
Taxability on Fixed Deposits
- Credit Rating: Opt for higher-rated corporate FDs based on its credit rating which indicates the underlying risk of the company.
- Company Background: Assess a company’s business viability by referring to its Financial Statements, Management discussion and Analysis.
- Repayment History: Companies repayment history helps to determine company’s credit score, credibility and stability.
The interest earned from fixed deposits is taxable. The tax deducted at source on FDs can range from 0% to 30% depending on income tax bracket of the investor. Financiers deduct 10% TDS if your interest earned is more than Rs. 5000 in a year, if your PAN details are available with them. However, in case your PAN details are not provided to your financial institution, 20% TDS will be deducted.
If your total income is below the minimum tax slab of 10% you can claim a refund of the deducted TDS. You can also avaid the deduction by submitting Form 15G to your financial institution, and submitting from 15H if you’re a senior citizen. If you fall in the higher tax bracket (20% or 30%), you would have to pay extra tax over and above the TDS deducted by your NBFC or bank.
subject to change if any as per the income Tax Act 1961.