Corporate Deposits are loan arrangements where a
specific amount of funds is placed on deposit under the name
of the account holder. The money placed on deposit earns a
fixed rate of interest, according to the terms and conditions
that govern the account. The actual amount of the fixed rate
can be influenced by such factors at the type of currency
involved in the deposit, the duration set in place for the
deposit, and the location where the deposit is made.
Benefits of investing in Company Fixed Deposits
- High interest.
- Short-term deposits.
- Lock-in period is only 6 months.
- No Income Tax is deducted at source if the interest
income is up to Rs 5,000 in one financial year
- Investment can be spread in more than one company, so
that interest from one company does not exceed Rs. 5,000
