Fixed deposits have always been a preferred option for investment among risk-averse investors. If you plan to invest in fixed deposits, you can consider cumulative company fixed deposits.
Cumulative company fixed deposits are an investment option that allows investors to deposit a lump sum amount of money with a company for a specific period of time and earn a fixed interest rate on their investment. Here are some benefits of cumulative company fixed deposits in India:
Guaranteed returns: Cumulative company fixed deposits offer a guaranteed rate of return on your investment, which can help you plan your finances better. If you are a senor citizen or someone who does not want to take the risk of market’s uncertainties, fixed deposits could be the best bet for you.
High interest rates: Company fixed deposits usually offer higher interest rates than traditional bank fixed deposits, making them a more attractive investment option. Often owing to high interest rates, many people prefer to park their money in cumulative company fixed deposits.
Also Read: How salaried persons should invest in mutual funds to maximise returns
Flexibility: Investors can choose the tenure of the deposit, which can range from a few months to several years, depending on their investment goals. Different companies have different tenures, you have the option to choose as per your requirements and financial goals.
Regular income: Cumulative company fixed deposits can provide a steady source of income for investors, as the interest earned is usually paid out at the end of the tenure. You can invest for different tenures that will help you generate regular income.
Low risk: Cumulative company fixed deposits are low-risk investments. They are not subject to market fluctuations and are backed by the company’s creditworthiness.
Nomination facility: Investors can nominate a beneficiary who will receive the deposit in the event of the investor’s death. This option is available in almost all financial products and you must make sure to put the name of the person whom you want to handle your funds in case of something happens to you.
Automatic renewal: Most companies offer automatic renewal of the deposit on maturity, which can save investors the hassle of having to renew the deposit manually. This feature helps you generate income without waiting for your approval. Your investments will keep growing with an auto renewal option.
Easy to invest: Cumulative company fixed deposits can be easily invested online or by visiting the company’s office. You can go the website or call the expert to assist you.
Diversification: Investing in company fixed deposits can help investors diversify their investment portfolio. They can make the most out of their investment due to high returns and diversification of their funds.
WHERE CAN YOU GET THE BEST FIXED DEPOSIT RATES TODAY?
AAA & AA-RATED COMPANY DEPOSITS
Compiled by BankBazaar.com
Interest rates as advertised by the company (Rated AA or higher) on 14 Mar 2023. Rates pertain to cumulative retail deposits (Deposit below Rs 1 cr). Rates will change as per the company’s policies. Highest rates (applicable for non-senior citizens) by each company are mentioned here. Some rates are as per special schemes which are for limited periods. Please contact the company to understand the scheme risks and details.