Company Fixed Deposits (Corporate FDs)

Company Fixed Deposits are investment options where individuals deposit funds with companies, including NBFCs and financial institutions, for a fixed return over a set period.

Key Advantages:

• Attractive Returns: Typically offer 2–4% higher interest than traditional bank FDs.
• Flexible Payouts: Interest can be received monthly, quarterly, semi-annually, or annually.
• Short Lock-in: Usually a minimum of 6 months, after which premature withdrawal is allowed.
• TDS Benefit: No TDS if annual interest from a single company is ₹5,000 or less.

Things to Consider:

• Review the company’s financial health and credit rating.
• Carefully read the application and terms.
• Be aware that interest rates may change without notice.

Bonds

A bond is a fixed-income instrument where you lend money to a company, government, or financial institution in exchange for regular interest payments and the return of principal at maturity.

Key Features:

• Fixed interest income over a defined time frame.
• Principal repaid at maturity.
• Issued by corporates, financial entities, or governments.

Bonds vs. Stocks:

• Bondholders = Lenders, Stockholders = Owners.
• Bonds have a set maturity date; stocks do not.
• Bonds generally offer more stability, while stocks offer higher growth potential but more risk.