Corporate Fixed Deposits
What is Corporate Fixed Deposits ?
A Corporate Fixed Deposit (CFD) is a type of investment where you deposit money with a company for a fixed tenure at a predetermined interest rate. Unlike bank FDs, CFDs are offered by non-banking financial companies (NBFCs) or corporates and typically offer higher returns but with higher risk.
How can a person invest in Corporate Fixed Deposits ?
To invest in Corporate Fixed Deposits, choose a reputable company, fill out an application form, and provide necessary documents like ID proof. Submit the form online or offline along with the investment amount. After processing, the company issues a receipt and pays interest at agreed intervals.
What is the process of investing in Corporate Fixed Deposits?
Process of Investing in Corporate Fixed Deposits:
1. Research: Choose a reputable company with good credit ratings.
2. Application: Fill out the application form online or offline.
3. Documentation: Submit required documents (ID proof, address proof).
4. Payment: Deposit the investment amount.
5. Receipt: Receive a confirmation receipt from the company.
6. Interest: Earn interest as per the agreed terms.
Benefits of investing in Corporate Fixed Deposits:
Benefits of Investing in Corporate Fixed Deposits:
1. Higher Returns: Typically offer better interest rates than bank fixed deposits.
2. Flexible Tenures: Choose from a variety of investment periods.
3. Periodic Interest Payouts: Options for monthly, quarterly, or annual interest payments.
4. Diverse Options: Invest in various companies across industries.
5. No Market Risks: Fixed returns unaffected by market volatility.