Typically, when investors wish to park their funds for a fixed term, with low or no risk, they tend to choose the more popular and traditional bank fixed deposit. However, another alternative investment opportunity is presented by corporate fixed deposits offered by non-banking companies and corporates . These are companies who could be operating a variety of businesses, and might be in need of capital for meeting various business needs or goals. When such a need arises, companies issue deposit certificates to investors at fixed interest rates for tenure options which an investor can choose. These are also popular as company fixed deposits among many investors looking for a safe haven for investing their savings.
Corporate fixed deposits offer higher rates of interest than conventional bank fixed deposits rates for a comparable term.
Corporate fixed deposits can be issued at a very low ticket size of INR. 5,000 with both cumulative interest and payout options.
They are also a relatively safer option when stock markets are volatile, as multiple company FD’s options with good credit ratings are available.
Moneyfront offers access to best Corporate FD’s from reputed companies with good credit rating making it a safe option to invest. As your financial planner and guide, our prime objective would be to help spread your investments in a diversified portfolio. Our due diligence process ensures that we offer access to company fixed deposits with good standing.