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
