Want to Earn Higher Returns than Banks? Try Investing in Company Fixed Deposits
Many people usually allocate their surplus funds in a fixed deposit account. This surplus fund can either be from a business profit or from a salary hike or even at that matter a retirement pension fund.
FD is a one-time investment option, where you can invest your money in one go. Also, the returns earned are fixed and does not depend upon the market conditions which makes the investment a safer option.
In case if you have a lump-sum amount, you can also split the amount and invest it in different FD accounts. Furthermore, this will help you earn higher returns and save taxes. Besides this, you can also benefit with an insurance worth 1 lakh on your invested amount. This insurance can, thus, help you safeguard your invested money.
If you are looking to invest in an FD, then there are many financial institutions which offer fixed deposit investment. You can either approach a bank or a Non-Banking Financial Company (NBFC) to invest in an FD account. As both these lenders offer you with fixed deposit, you might not know where exactly to invest in.
Bank fixed deposits:
There are many banks who offer fixed deposit investment option. When opening an FD account the investor does not necessarily have to open a savings account in order to access the former. Apart from this, it is important to check the interest rates offered by banking institutions as it differs from each bank. The FD interest rate offered by banks is usually average and seems to increase depending upon the tenure. Nowadays banks also provide online services to their investors to get the quick facility, but at the time of applying for a fixed deposit account, the investors have to submit the required documents.
Company fixed deposits:
Fixed deposit offered by NBFCs is also known as Company fixed deposit. There are many companies which offer this investment option. The account is similar to banks except for the rate of interest offered is high as compared to the banks FD. In case, if you wish to earn higher returns you can go for investing in NBFCs. Also, company fixed deposits offer many schemes and facilities to the investors. Besides this, the application process is also quite simple as you can get it done by visiting the company’s website. The companies also provide an interest calculator wherein you can check the interest offered on your account.
After the demonetization, the Indian economy has gone through a lot of changes. The cut down of repo rates by Reserve Bank of India (RBI) has not only affected the loans, but the effect is also seen on investments. This has made investors rethink about the investment options. As this is the case, investing in companies fixed deposit can benefit you, and you can earn higher returns.
