Fixed Deposits

How to Choose?​

1) Creditability:

Invest in a company with a good reputation and a good credit rating.

2) Duration:

Check duration of Corporate FD and invest as per your time horizon

3) Tax implication:

☆ Interest will be added in your income.

Why invest in corporate F.D

☆ Better return than Bank F.D

☆ Regular Fixed Income

Ways to Invest

Like any other fixed deposit (FD), you have to invest a chunk of money at one go in a corporate FD. However, there are two ways in which you can receive the interest on your investment:

Cumulative:

In this type of corporate FD, the interest earned is added to the principal so that your earn interest on the interest. Simply put, this means higher returns. This is good if you aren’t looking for regular income from your investment.

Non-Cumulative:

In this type of corporate FD, the interest earned is paid out to you while further interest is calculated on the original sum you invested. This means you earn an income at regular intervals, but eliminate the possibility of earning interest on interest.

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