Fixed Deposits / Bonds

FDs are one of the oldest and most common methods of investing. When it comes to assured returns, choosing the right type of savings scheme makes all the difference. Fixed Deposits let you make the most of value-added benefits as you create wealth atlow risk.

Fixed Deposits in companies that earn a fixed rate of return over a period of time are called Company Fixed Deposits.

Types of Companies offering Fixed Deposits

  • Financial Institutions

  • Non-Banking Finance Companies (NBFCs).

  • Manufacturing Companies

  • Housing Finance Companies

  • Government Companies &�You can also go for Fixed Deposits with Banks.

Features and Benefits

  • Company Fixed Deposits offer comparatively higher returns than banks.

  • Choose the best tenure for you from a wide range as per your convenience. You can choose how frequently you want to receive your interest payments:

    • Maturity

    • Yearly

    • Half-yearly

    • Quarterly

    • Monthly

  • Company Fixed Deposits are non transferable that means there is no fear of FD receipt being stolen. In case it falls into wrong hands, it cannot be misused.

  • Premature encashment of deposit is available any time subject to payment of prescribed penalty.

  • Diversify Risk- The deposits should be spread over a large number of companies engaged in different industries. This way, you'll be able to diversify your risk among various industries/companies.

  • Wide Choices- Many companies operating in the Company Deposit market. This will help you decide whether to renew or reshuffle the deposit.

  • Attractive rates as applicable from time to time.


How to choose a good company deposit scheme?

Don’t go for Companies which offer interest much higher than market.
Ignore unrated Company Deposit Schemes. Look at only AA or AAA rated schemes.


Tax Deductions on Company Fixed Deposits

TDS will be deducted when interest payable or reinvested per customer, per company exceeds the amount applicable as per statutory rules in a financial year.



Sec 80CCF Infrastructure Bonds

Since last Financial year these have emerged as an addtional tax saving opportunity for the investors. With a secured format of debentures and a guaranteed interest rate these can be very useful tool for tax saving for the persons in tax slab of 10% or more. 

Tax Benefit: The benefit under section 80 CCF is limited to Rs.20000 in a year & this is over and above the 80C limit of Rs.1 lac.


Following are the details of currently available Infrastrure Bond issues.