Why And When To Invest In Company Fixed Deposits?
Fixed deposit is a common and well-known financial tool. You can invest in different kinds of fixed deposit schemes if you are looking for low-risk investment tools. Different kinds of organizations offer them for you. But, company fixed deposit is a unique one. It is just as safe if you take a right caution while selecting an organization. In fact, it can be more rewarding too. But, since the organizations are not the nationalized ones, a risk is a bit higher. So, let's explore the right reasons and the right time to invest in the company fixed deposit schemes.
Why to invest in company fixed deposits?
• Some of the best corporate giants gather funds through company fixed deposit schemes. So, if you invest a certain amount of time in research, you can avail a higher annual yield than traditional FD without much of a risk.
• This is a great way to diversify your investment portfolio. Low-risk and low-yield financial instruments can be better rather than investing it all in a stock market.
• If your yield from a particular company fixed deposit account is lower than Rs. 5000, then income tax won't be deducted at source. Thus, you can choose to include it in your ITR as per your convenience.
When to invest in company fixed deposits?
• In certain phases, you must avoid investing funds in the stock market. It is very challenging to make profits in a highly volatile and unpredictable stock market. Open a company fixed deposit account to invest available funds at such point of time. Low-risk nature of the investment is a suitable choice at such point of time.
• Several people in India land up having access to surplus funds. They need to find an investment channel that offers good interest without the risk of stock market. The company fixed deposit account is a perfect choice for such investors.
• Some investors are looking for a financial tool to channel their savings. This is especially applicable to people, who are saving a certain part of their funds for a certain purpose. Eg.: wedding, education, down payment for home loan, nest egg for their children's future etc. The company fixed deposit schemes work out really well for such investors.
As you understand the value and the scope of this financial instrument, you can take a well-informed judgment call on it. Find out companies' credit rating. Check the fine print and default risk well in advance. Then, you will invest in these instruments profitably.
Why to invest in company fixed deposits?
• Some of the best corporate giants gather funds through company fixed deposit schemes. So, if you invest a certain amount of time in research, you can avail a higher annual yield than traditional FD without much of a risk.
• This is a great way to diversify your investment portfolio. Low-risk and low-yield financial instruments can be better rather than investing it all in a stock market.
• If your yield from a particular company fixed deposit account is lower than Rs. 5000, then income tax won't be deducted at source. Thus, you can choose to include it in your ITR as per your convenience.
When to invest in company fixed deposits?
• In certain phases, you must avoid investing funds in the stock market. It is very challenging to make profits in a highly volatile and unpredictable stock market. Open a company fixed deposit account to invest available funds at such point of time. Low-risk nature of the investment is a suitable choice at such point of time.
• Several people in India land up having access to surplus funds. They need to find an investment channel that offers good interest without the risk of stock market. The company fixed deposit account is a perfect choice for such investors.
• Some investors are looking for a financial tool to channel their savings. This is especially applicable to people, who are saving a certain part of their funds for a certain purpose. Eg.: wedding, education, down payment for home loan, nest egg for their children's future etc. The company fixed deposit schemes work out really well for such investors.
As you understand the value and the scope of this financial instrument, you can take a well-informed judgment call on it. Find out companies' credit rating. Check the fine print and default risk well in advance. Then, you will invest in these instruments profitably.
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