Bajaj Finance Best Investment Plans

Company Fixed Deposits: Best Interest Returns

Company Fixed Deposits

Why should you invest in a company fixed deposit?

Company fixed deposit is better than bank fixed deposit as it offers higher interest rates, as compared to bank fixed deposit interest rates. Bank FD rates are determined by several factors which may be affected by the interest rate movement decided by the Reserve Bank of India (RBI). However, with company FD, you can be assured of high interest rates.

When investing in company FD, you may want to choose issuers offering high interest rates, which also carry the risk of delays or defaults. In order to make the right choice, it is best to choose a safe company fixed deposit that is accredited with high stability ratings by credit rating agencies like CRISIL and ICRA.

Here are the considerations you must keep in mind, when choosing the right company fixed deposit to invest in:

  • Safety ratings – Company fixed deposits are rated by credit rating agencies such as CRISIL and ICRA on a 14-point rating system, which determine the assumed risk levels. These will inform you of the stability aspect of the company fixed deposit from time to time. The higher the rating, the safer your investment.
    You can also compare the track record of company fixed deposit rates and determine the ones offering higher interest rate. Bajaj Finance Fixed Deposit has ratings of FAAA by CRISIL and MAAA by ICRA, which are the highest in the industry.
  • Past repayment history – A company with timely interest payments and no default in repayment of fixed deposits is ideal. For example, Bajaj Finance is known for its reputation of being one of the only NBFCs to have ‘0 unclaimed deposits’. This indicates highest safety of deposit, and the assurance of timely payments and default-free experience.
    Additionally, the trust of more than 3 lakh happy FD customers and a deposit book of Rs. 25,000 crore is further testament to the fact that Bajaj Finance is one of the most reliable FD issuers.

What are the benefits of investing in a company fixed deposit?

  • Flexible periodic interest payout options: Companies like Bajaj Finance offer periodic payment options like monthly, quarterly and annually. These options can help you achieve a fixed income for your planned expenses. The option to access your earnings at the end of maturity will help you create a sizeable corpus.
  • No effect of market fluctuations: FD rates are pre-determined and free from any market fluctuations. You can be assured of guaranteed returns along with the highest FD rates with company fixed deposits.
  • Liquidity: Loan Against fixed deposit is easily available even up to 75% of the maturity amount. Another way to achieve liquidity is the option of premature withdrawal with a minimal penalty.
  • Additional rate benefits: Company FDs offer benefits such as revision of interest rate based on your return.
    Bajaj Finance FD offers an additional 0.10% interest rate upon renewal. Senior citizens can avail of an additional interest rate benefit of 0.25%. They can take advantage of easy online application process from the comfort of their homes.

    Bajaj Finance FD offers interest rates up to 6.75% for tenors of 36 months or more. You can also calculate your returns and your fixed deposit portfolio returns by using the online FD calculator. You can adjust the tenor and the principal amount and see the maturity amount you will receive. It is a simple and useful tool for portfolio planning.