Company Fixed Deposits

Of the different types of investments available in the market, Company Fixed Deposit is one of them. We at Nostra Wealth offer different kinds of Company Fixed Deposits as per individual requirements and needs. With the financial market changing now and then, it is very important that you know where to invest, how much and where. It is advisable that one should invest in two-three different types of investments, so that even if the market is hit, the individual suffers minimum loss without any serious financial damage.

Company Fixed Deposit is mainly the deposit placed by investors with different companies for a specific period of time at a mentioned rate of interest. These kinds of deposits always offer 2-3% higher interest rate compared to the Bank Deposit Rate. If you are investing in these deposits you have the option of depositing the money on a monthly, quarterly, half yearly as well as on annual basis. Moreover one can easily deposit the money either through the means of a Cheque or through Electronic Clearing System basis.

But the question remains how do you choose a Company Fixed Deposit?

Following are some of the steps that will make it easy for you to choose a Company Fixed Deposit:

• Avoid unrated Company Deposit Schemes / deposit schemes of small and unknown companies
• Opt for only AA or AA schemes – as RBI has made it mandatory for a company to have A Rating in order to offer public deposits.
• If there are say, three companies with AA rating, opt for the one that enjoys a better public reputation.
• Opt for those schemes that have better return.
• Go for cumulative schemes in comparison to regular income options since the interest earned automatically gets reinvested at the same coupon rate, resulting in better yields.
• Make shorter deposits for 1 year or say 3 years for a lump-sum of amount of money at one go!
• Make sure that the company accepts outstation cheques and makes payment through at par cheques, this is very important if you don't stay at the same city where the company located.

Which companies can accept deposits?

Companies registered under the Companies Act 1956, such as:

• Manufacturing Companies.
• Non-Banking Finance Companies.
• Housing Finance Companies.
• Financial Institutions.
• Government Companies.

Can an NRI invest in deposits?

Yes, NRIs can invest in fixed deposits with the public limited companies in India. But then there are certain requirements that need to be met. For example - If the permission to accept deposits from NRI's was already taken by the Indian company, it is not necessary for the investor to take a separate permission. They can go ahead and deposit.

However, due to operational constraints, at this moment, FundsIndia has decided not to accept corporate fixed deposits from NRIs. Don't worry we at Nostra Wealth will keep you updated you on this.