| 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 incase 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.
Performance of the companies should be reviewed at maturity. This helps in deciding
whether the deposit should be renewed or not. One should also keep track of these
companies by checking their Balance Sheet, Share prices.
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FD Calculator gives you the return on the Principal when interest is paid on quarterly compounding. Effective yield is the actual return on your Fixed Deposit.
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