Fixed Deposits
Fixed Deposits 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 at low 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
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.
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Maturity Options:
- Yearly
- Half-yearly
- Quarterly
- Monthly
- Company Fixed Deposits are non-transferable which means there is no fear of FD receipt being stolen. In case it falls into wrong hands, it cannot be misused.
- Attractive rates as applicable from time to time.
Bonds: Govt Bonds / RBI Bonds / Corporate Bonds
A bond is a fixed-income instrument and investment product where individuals lend money to a government or company at a certain interest rate for an amount of time. The entity repays individuals with interest in addition to the original face value of the bond.
Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Owners of bonds are debtholders, or creditors, of the issuer. Bond details include the end date when the principal of the loan is due to be paid to the bond owner and usually include the terms for variable or fixed interest payments made by the borrower.
Key Takeaways
- A bond is referred to as a fixed-income instrument since bonds traditionally pay a fixed interest rate or coupon to debtholders.
- Bonds have maturity dates at which point the principal amount must be paid back in full or risk default.