Do's and Don'ts of corporate fixed deposits
When it comes to investments, all of us would like to earn higher and secured returns. If you also belong to the same category, corporate Fixed Deposits (FDs) pose a good option in these times of high inflation and inflation FD rates.
April 03, 2012 / 11:16 IST
By Rupeetalk
When it comes to investments, all of us would like to earn higher and secured returns. If you also belong to the same category, corporate Fixed Deposits (FDs) pose a good option in these times of high inflation and inflation FD rates. However, one needs to look at following aspects of corporate FDs to understand the characteristics and nature of returns to understand this investment instrument. Characteristics1. Corporate FDs usually earn higher interest rates as compared to bank FDs.2. Like bank FDs, they are good source of monthly, quarterly, half-yearly or yearly interest income. 3. The tenure is flexible, ranging from six months to seven years. 4. Also, there is no tax deduction at source for FDs earning interest of up to Rs 5,000 a year. 5. Unlike bank FDs, corporate FDs give you an option to choose a nominee for your investment. 6. In addition, the operational process is hassle-free, resulting in easy opening of corporate accounts. In some cases, even PAN card is not allowed. 7. On the other hand, corporate FDs are not as secured as bank FDs as all the returns shown are projected and not guaranteed. It means that even if the projected interest rate is of 9%, the returns actually received will be lesser, let
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