Company Fixed Deposits (FDs) are investment options offered by companies to raise money from the public. Fixed deposits offered by banks are similar to these but with higher interest rates. In India, corporate FDs have the following features:
Fixed Interest Rate:
A corporate fixed-rate deposit has fixed senior citizen FD rates for the duration of the deposit, ranging from 12 to 60 months.
Guaranteed Returns:
Investment options such as Corporate FDs are low-risk because their interest is guaranteed.
Tax Benefits:
A corporate Fixed deposit account is tax deductible as stipulated by Section 80C of the Income Tax Act.
Minimum Investment:
The minimum investment requirement for corporate fixed deposits is usually between a few thousand and several lakhs of rupees.
Fixed Tenure:
The term of a Corporate FD is fixed, and the interest rate does not change throughout the contract.
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