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Corporate
Deposits are
loan arrangements where a specific amount of funds is placed on deposit
under the name of the account holder. The money placed on deposit earns a
fixed rate of interest, according to the terms and conditions that govern
the account. The actual amount of the fixed rate can be influenced by
such factors at the type of currency involved in the deposit, the
duration set in place for the deposit, and the location where the deposit
is made.
Benefits
of investing in Company Fixed Deposits
- High interest.
- Short-term deposits.
- Lock-in period is only 6 months.
- No Income Tax is deducted at source if the interest income is up to
Rs 5,000 in one financial year
- Investment can be spread in more than one company, so that interest
from one company does not exceed Rs. 5,000
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