FEATURES OF CORPORATE FIXED DEPOSITS
Benefit from a host of features offered by Corporate Fixed Deposits Scheme (CFDs) on www.investmentz.com that enables faster money growth.
CHOOSE CORPORATE FIXED DEPOSITS THAT OFFER THE BEST INTEREST RATES
Compare term deposit rates from companies with the best credit rating in the market at www.investmentz.com.
SHRIRAM UNNATI FIXED DEPOSIT
|8.65%||36 Months||Download FormView Rates|
BAJAJ FINANCE LTD.
|8.75%||36 Months||Download FormView Rates|
MAHINDRA & MAHINDRA FINANCE LTD.
|8.80%||36 Months||Download FormView Rates|
HDFC SPECIAL DEPOSITS UPTO 2 CRORE
|8.19%||33 Months||Download FormView Rates|
HDFC LTD PREMIUM DEPOSIT PLAN (Upto 2 Cr)
|8.08%||30 Months||Download FormView Rates|
HDFC Deposits Individual - Regular
|7.60%||36 Months||Download FormView Rates|
PNB Deposits Individual- Regular
|8.35%||36 Months||Download FormView Rates|
LIC HOUSING LTD
|9.13%||36 Months||Download FormView Rates|
THINGS YOU NEED TO KNOW ABOUT CORPORATE FIXED DEPOSITS INTEREST RATES
- Duration of the term deposit determines the interest rate
- Many companies offer cumulative and non-cumulative interest rates
- Certain companies offer higher interest rates to senior citizens
- Some companies offer higher interest rates to its employees
- Few companies could extend high interest rates for their employees’ family members
CORPORATE FIXED DEPOSIT FAQ
What is a corporate fixed deposit?
A fixed deposit or FD is a specific financial instrument that is offered by banks and NBFCs in India. These offer higher interest rates than regular savings accounts to investors until the prefixed maturity date. Fixed deposits are considered one of the safest investment avenues in India and are term deposits that yield high interest.
Why should I choose a corporate fixed deposit?
A fixed deposit encourages a healthy habit of saving and guarantees fixed returns without any anticipated risks. A fixed deposit allows you to put your idle savings to good use and grow your wealth. You can also rest assured about your investment since most of FD in our basket is the fastest growing NBFCs from India’s most reliable and valued business houses. The company fixed deposits offer Higher Fixed returns then bank fixed deposits. It also carries the rating of AAA+ and follows the guidelines issued by NBFC.
Who can apply for a Corporate Fixed Deposit?
Any Indian individual or family trust, club, association, society, HUF, sole proprietorship, partnership firm, company, or group of companies can make a fixed deposit.
How to open a Corporate Fixed Deposit account?
A prospective depositor has to fill prescribed “Deposit Application Form” along with all KYC documents and an accounts payee cheque/Demand Draft/NEFT/RTGS in favour of the company issuing the FD. All deposit applications are available on their website. Deposit forms could be downloaded from the company’s website.
Can CFD be opened in name of a Child?
Yes. You can make a deposit in the name of minor provided such minor is represented by his natural or legal guardian and the Application Form for the deposit is signed by the natural/legal guardian, on behalf of the minor. All communication in relation to the deposit shall be addressed to the guardian.
Which CFDs are available for investing?
At ACMIIL, We deal with all AAA-rated Company Fixed Deposits, which follow the NBFC guidelines.
What are interest rates on various CFDs?
The interest rate differs from company to company so does the tenure. The detail of each company’s interest rate is available under the website. We request you to visit the same.
What are the different types of fixed deposits?
There are two types of fixed deposits offered – cumulative and non-cumulative. In a cumulative fixed deposit scheme, the interest earned on the principal is compounded annually and is payable at the time of maturity of the fixed deposit along with the principal amount. This fixed deposit is ideal for investors willing to grow their wealth without having to depend on interest payouts at periodic intervals. The final payout of the principal plus the interest amount will be subject to tax deductions wherever applicable.
In a non-cumulative fixed deposit scheme, the interest earned on the principal amount is payable on monthly/quarterly/semi-annually/yearly depending on the convenience and wishes of the investor. This scheme works for investors who need interest payments on a periodic basis.
Here’s how the interest amount will change when you choose a Cumulative vs. a Non-Cumulative FD:
|Tenure||5 years||5 years|
|Interest earned||Rs.4, 59, 153||Rs.3, 79, 000|
|Maturity amount||Rs.14, 59, 153||Rs.13, 79, 000|
What are the documents required to open corporate fixed deposit?
a) Latest photograph b) Certified copy of the proof of identifying (Passport, PAN (Mandatory), Voters ID, Driving License, Aadhar Card ) c) Certified copy of the proof of address. –(Passport, Aadhar Card, Utility bill) which is not more than two months old from any of the following service provider – electricity, telephone, post-paid mobile phone, piped gas, water bill d) Certified copy of the proof of signature
In case the depositor has already submitted the above documents in his earlier deposit, then he/she need not submit the above documents again, but has to provide the reference of his customer number or deposit number.
List of Individual Document – ID Proof (Anyone – Self-attested):
- PAN (Mandatory)
- Voters ID
- Driving License
- Aadhar Card
- Address Proof (Any one – Self-attested)
What is the min/max tenor I can choose?
Minimum tenor – 12 months
Maximum tenor – 60 months
Is there any charge/processing fee levied for opening a Fixed Deposit account?
There are no charges levied to open your fixed deposit account.
What happens in the case of the CFD holder's demise?
The nominee needs to fill in a form and request encashment of the FD at the branch. In case of joint account holders, change in the names of deposit holders on deposit receipt and/or bank account to which interest and/or principal shall be credited shall be effected only on the production of a copy of the death certificate, certified to be true by notary public, without reference to the heirs and/or legal representatives of the deceased and instruction to the Company in this behalf by all the surviving deposit holder(s) jointly in writing. In any other case, it will be necessary for the legal representative of the deceased depositor to produce the succession certificate/letter of administration/probate of the will, etc. to the satisfaction of the company.
How to change existing fixed deposit account tenure?
Please be informed that the tenure selected for the fixed deposit account cannot be changed once the account is opened. In this case, we suggest that you can close your existing fixed deposit account and open a new account with the desired tenure.
What about interest earned on the CFDs?
Under Section 194A of the Income Tax Act, 1961, in case of interest earned from investments in fixed deposits floated by NBFCs, exceeds Rs. 5,000, interest income is taxable. At a PAN Card level for the depositor, his/her interest income will be arrived at after consolidating all his fixed deposits. TDS will be calculated by respective FD issuing company and paid into the government account as per the interest payment frequency. The TDS certificate will be provided to the depositor every quarter. In case the depositor provides 15G/15H during the application stage, he/she will be exempted from paying tax on his interest income.
What are the Tax liabilities in CFDs?
If the aggregate interest income a customer is likely to earn for all deposits is greater than Rs.5,000/- in a financial year, depositor becomes liable for TDS. A customer can submit Form 15G (For Individuals and HUF) /15H (For Senior Citizen who is of the age of 60 years or more) or a certificate for lower/nil deduction of TDS issued by Income Tax Authorities u/s 197 of the Income Tax Act, 1961.
In case of NRIs, any amount of interest paid/credited during the financial year shall attract TDS.
Is there any charge/processing fee levied for opening a fixed deposit account?
There are no charges levied to open your fixed deposit account.
What is the process for FD renewal?
Customers can provide maturity instruction to ACMIIL while placing the original fixed deposit to renew it on maturity. Moreover, ACMIIL will send renewal reminders to you on your registered email ID. You will need to walk into the nearest ACMIIL branch and mention the desire to renew your deposit by filling up the application/renewal form at least 7 days prior to the maturity date. Post 7 days prior to the maturity date, no request will be taken to renew the deposit account. You may renew only the principal or principal along with interest.
How will the maturity amount be transferred?
The maturity amount will be transferred to the bank account mentioned by the depositor in the application form through the National Electronic Fund Transfer/Real Time Gross Settlement modes only. The entire amount shall be transferred on the date of maturity of the deposit. In the case of electronic account transfer bounce, the amount will be sent across to the depositor through cheque.
How can I change my bank details?
For requesting a change of bank account for an individual FD account, the customer would need to submit a self-attested written application. He/she also needs to submit a valid ID proof copy along with a cancelled cheque with his/her name printed (if not printed, then bank statement of the same account needed).
Individual FD account – For any name change due to marriage, the lady applicant needs to provide a copy of the marriage certificate along with a self-attested written application for change of name.
Joint FD account- For requesting a change in bank details, customer needs to submit a written application duly signed by all holders of the FD account, along with a cancelled cheque of the new bank account with his name printed (if not printed, then bank statement of the same account needed).
Can I withdraw this FD before the tenor expiry? If yes, what is the impact on interest?
The lock-in period for any FD is 3 months, before which the FD cannot be withdrawn. For premature withdrawal there are penalty slabs:
- 0 -3 mths – FD cannot be withdrawn
- 3 -6 mths – No interest is payable on the deposit. Only the principal is payable
- >6 mths – interest payable is 2% lower than the interest rate applicable for the period for which the deposit has run for. In case of no interest is specified for the period run, interest payable will be 3% lower than the lowest rate at which deposits.
Can I open a deposit account by cash payment?
FD issuing company does not accept cash payment for creating a fixed deposit account. Moreover, the deposit account cannot be created through borrowed funds.