Fixed Deposit
Fixed Deposits are deposits where a particular sum of money is invested for a fixed duration. The duration of Fixed Deposits is flexible. It can range from 7 days to 10 years. The rate of interest for the Fixed Deposit depends on the period for which the funds are locked in.
Guaranteed Returns
Fixed deposits offer assured returns at predetermined interest rates.
Capital Preservation
Principal amount remains secure throughout the investment tenure.
Just like a Recurring Deposit, a Fixed Deposit amount cannot be withdrawn until the maturity period. Premature withdrawal is allowed after the bank charges a penalty in the rate of interest. The minimum amount of investment for a Fixed Deposit is Rs. 5,000. The rate of interest on the Fixed Deposit ranges from 4% to 7.5%. You can also calculate your rate of interest using the FD calculator.
Some banks provide the option of a sweep-out facility where the amount above a particular balance in a Savings Account is automatically converted to a Fixed Deposit. This helps the Savings Account earn more interest.
Corporate Fixed Deposits
Fixed Deposits are deposits where a particular sum of money is invested for a fixed duration. The duration of Fixed Deposits is flexible. It can range from 7 days to 10 years. The rate of interest for the Fixed Deposit depends on the period for which the funds are locked in.
Guaranteed Returns
Fixed deposits offer assured returns at predetermined interest rates.
Capital Preservation
Principal amount remains secure throughout the investment tenure.
Corporate fixed deposits are investment instruments offered by companies to raise funds from the public. Investors deposit a lump sum with a company for a fixed period, typically ranging from months to years, in exchange for a fixed rate of interest. These deposits are usually unsecured, meaning they do not have collateral backing them, and are considered relatively higher risk compared to bank fixed deposits. However, they often offer higher interest rates than traditional bank deposits, making them attractive to investors seeking better returns. It's essential for investors to carefully consider the company's financial health, credit rating, and the terms of the deposit before investing in corporate fixed deposits.