Investing in a Company Fixed Deposit is one of the simplest way to boost your savings especially in uncertain times where there is no certainty of returns. Thus Company Fixed Deposit (CFD) is a great investment option where you can meet your short term and long term financial needs as the time period is flexible ranging between 12 and 60 months.
Company Fixed Deposit is a term deposit which is held over a fixed period of time and carries fixed rates of interest. Company Fixed Deposits are offered by both Financial and Non-Banking financial companies (NBFCs). The maturities of various company fixed deposits can range from a few months to a few years. Already experts are predicting that bank Fixed Deposit interest rates may fall in the next one to 3 years. In such a scenario, Company Fixed Deposit have a distinct edge as the interest rates offered by Non-Banking Finance Companies (NBFC) like Bajaj Finance and HDFC will be more than those offered by banks.
Benefits of investing in Company Fixed Deposits:
- Higher assured returns.
- Flexibility in choosing various tenures such as monthly, quarterly, half-yearly and yearly.
- Better liquidity.
- Reduced risk as they are backed by reputed credit rating agencies.