Fixed Deposit aka term deposit is an instrument by which one can deposit his/her savings for a prescribed period of time with a bank. When the period of deposit elapses, the depositor is entitled to the interest on the deposited amount. In some cases, the rate of interest on fixed deposits can be as high as 9.5%!

For starters, a fixed deposit is not a normal deposit that you do at your bank and then withdraw it as and when you please. But, it is a deposit that cannot be withdrawn in the specified period. Generally, these types of deposits are made for duration of 5 years. During this time, the amount remains in your bank account and is prohibited to be withdrawn for any reason. Non-profit organizations, corporate entities and individuals alike, who wish to keep aside a stipulated sum for a particular period of time, most often than not, find that such deposits are the easiest way in attaining their objective. The icing on the cake is their money will earn a rate of interest that is shielded by any fluctuations in the interest rates that governs other type of investments. Such deposits are a good (if not the best) way to gain a return on investment which is a tad higher than a conventional savings account.

Trust Deposits:

Deposits that are made "in the name of one person, as trustee for another" are branded as "trust deposits."

Trust deposits are made for three basic reasons:

1. • • Pose for the disposition of a domain after demise sans the use of a will or administration,
     • Hide from others info of financial standing, or
     • Escalate deposits where a prescribed limit is set upon single deposits.

Lastly, fixed deposits offer investors a relatively safe avenue for parking their funds, albeit at the risk of earning a slightly lower return on investment. At the end of the day, it is up-to the individual investor to decide for themselves whether they wish to pursue a high return-high risk approach or a relatively lower but largely safe investment approach.

Types of Companies offering Fixed Deposits

• • • Financial Institutions
    • Non-Banking Finance Companies (NBFCs).
    • Manufacturing Companies
    • Housing Finance Companies
    • Government Companies

Features and Benefits

• • • Company Fixed Deposits offer comparatively higher returns than banks.
    • Choose the best tenure for you from a wide range as per your convenience.

You can choose how frequently you want to receive your interest payments :-

• • • Maturity
    • Yearly
    • Half-yearly
    • Quarterly
    • Monthly

Company Fixed Deposits are non transferable that means there is no fear of FD receipt being stolen. In case it falls into wrong hands, it cannot be misused.

Premature encashment of deposit is available any time subject to payment of prescribed penalty.

Diversify Risk - The deposits should be spread over a large number of companies engaged in different industries. This way, youll be able to diversify your risk among various industries/companies.

Wide Choices- Many companies operating in the Company Deposit market. This will help you decide whether to renew or reshuffle the deposit.

Attractive rates as applicable from time to time.

We suggest investment into the following Fixed Deposit Companies

• • • Shriram Transport Finance Company Ltd
    • Dewan Housing Finance Corporation Ltd
    • Mahindra & Mahindra Financial Services Ltd
    • Sundaram BNP Paribas Home Finance
    • PNB Housing
    • HDFC Ltd

Apart from Fixed Deposits following are the other avenues of investments

• • • Investments into bonds through Secondary Market
    • Peer to Peer lending - Monexo

For investment into Fixed Deposit kindly click here