A company fixed deposit, also called a corporate fixed deposit, is like a savings plan offered by certain non-banking companies, manufacturers, and housing finance firms. It's a trusted way to grow your money smoothly and is regulated by a law called Section 58 A in the Companies Act of 2013.

Why Should you Invest in Corporate FDs ?

Fixed Deposits are common and favorite deposits for investors who want returns regularly. Most people think of banks when they hear the term Fixed Deposits, but there is also a better option in FDs apart from banks. These are known as Corporate FDs, and they offer higher interest rates compared to the banks. However, these are unsecured and are not backed by any collateral.

The investor invests a lump sum amount of money in a fixed deposit and then receives interest periodically till the Fixed Deposit is matured. Here, maturity is a specific period for which an investor invests money. Bank FDs are the most popular, but much like banks, other institutions can also collect money in Fixed Deposits. A few such as corporates, NBFCs, and financial institutions raise money for their present or forthcoming operations.

Before investing in Corporate Fixed Deposits, it is important to understand how corporate FDs work.

How Corporate FD’s Work ?

• Fund Collection: Corporates gather money from individuals through Fixed Deposits for a set duration.
• Utilization of Funds: The collected money is then used by the company for its financial and production operations during that specific period.
• Interest Payment: Each individual who invested in the Fixed Deposit receives a fixed interest rate from the company for the duration of the deposit.
• Capital Raising: Corporate FDs make it easier for companies to raise capital for their operations since these deposits act as unsecured loans.
• Longer Duration: Corporate FDs generally have longer durations compared to other investment options, providing investors with the opportunity for longer-term investments.

Why Choose Aadeeshwara ?

• Credibility and Trustworthiness: We could have a strong reputation and credibility in managing corporate FDs, instilling trust among investors.
• Competitive Interest Rates: They might offer attractive and competitive interest rates on corporate FDs, potentially providing better returns for investors.
• Transparent Processes: We could have transparent and clear procedures for managing corporate FDs, ensuring investors understand the terms and conditions.
• Reliable Returns: They might have a history of delivering consistent and reliable returns on corporate FDs, which is appealing to investors seeking stability.
• Interest Payment : Each individual who invested in the Fixed Deposit receives a fixed interest rate from the company for the duration of the deposit.