Most investors prefer fixed deposit systems and feel it to be the safest option. At present, the interest charge is declining banks are also reducing their interest rates.

The traditional investors have considered bank Fixed deposit is a smart investment option from a very long time. But, with the falling interest rate situation, banks perhaps the first ones to cut down the deposit rates that investors once used to receive.

Therefore, if declining bank deposit charge is giving you tension then you must not worry as other options that are available that you may like as they provide you with better returns. One of such alternative available for such investors is to invest in FD plans obtainable by non-banking-finance companies with higher interest rates than banks.  Another major option that is available is fixed deposit schemes offered by NBFCs with a good track record that also offers you with superior rates. Like for example - a one-year deposit from the one of the top rated Sundaram Finance offers you with 9.75 percent interest rate.

In addition, the senior citizens are eligible to receive 0.5 per cent extra interest on their deposit. This is higher than the 9% that is offered by Tamil Nadu Mercantile Bank, which is the highest among all the other banks.

So the RBI in this regard has approved the establishments to accept money from the commoner for fixed term and these companies under the RBI guidelines will perform the tasks under a set under that are specified guidelines of Reserve Bank of India (RBI).

These rules and instructions that are set under the RBI are for all the investors who are ready to invest in NBFCs. By following this guideline can help in protecting an individual's interest in investing in these companies.

The Features of Company Fixed Deposits are as Follows:

Before investing in any schemes or in any organizations we should know the features that are under those specific institutions.

When we think about the term of the company or about the non-bank fixed deposits (FD) schemes you should to know about FD interest rate that they are offering, they usually provide a smaller amount as when it comes to these deposit schemes, the performance of the company and evaluation may change often subjected on altered variables. So, as a matter of uncertainty, the investors prefer shorter terms. And as per Reserve Bank of India regulations for the period of such schemes cannot be smaller than a year or more than five years.

The Different Types of Company Fixed Deposits- There are primarily two types of fixed deposit schemes that are under the non-bank fixed deposit category and they are

Cumulative and Non-cumulative fixed deposit schemes.

In the Cumulative Fixed Deposit Scheme, the interests that are accumulated with the principal so as to earn greater returns when compared to non-cumulative plan. This scheme pays interest accumulated on deposit schemes on the maturity of the fixed deposit.

The Non-Cumulative Fixed Deposit Plan pays off the significance earned on investment on a systematic basis that is in 6 months or 12 months. So the interest in the venture does not get attained on main and depositors can earn high interests.

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