Invest in the Best Corporate Fixed Deposit Online with Prakash72
Corporate Fixed Deposits are a good alternative to Bank Fixed Deposits as they offer better returns. Corporate Fixed Deposits are just like Bank Fixed Deposits. These companies’ Fixed Deposits are known as ‘Corporate Fixed Deposits’ or ‘Company Fixed Deposits’. The investor gets the interest on the basis of the Corporate Fixed Deposits plan that they choose.
Why Prakash72
Provides easy access to an array of Fixed Deposit options
Perfect opportunity to earn higher returns
FAAA rating from CRISIL
High rate of interest
Smart interface and dashboard that enables easy tracking of investments
How does Fixed Deposits Work
Step 1:
As per the recognition of RBI Banks, NBFCs such as Bajaj Finance, Mahindra & Mahindra Finance , HDFC, PNB Housing Finance can issue Fixed Deposits for a fixed tenor at a fixed interest rate.
Step 2:
An investor can make a selection of Fixed Deposits taking into consideration various parameters such as interest rate, returns, maturity, ratings and much more.
Step 3:
Investors can choose to invest in multiple interest options namely cumulative interest or non-cumulative fixed deposit scheme.
Step 4:
The individuals with an income below the tax slab rate can submit a 15G or 15H form with the bank or NBFC for requesting no-TDS deduction on the interest earned.
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Aspects of Fixed Deposits
Features
- High rate of interest: What makes a Corporate Fixed Deposits plan a profitable venture is the higher rate of interest. Corporate fixed schemes always have higher interest rates than bank FDs.
- Period of penalty: The penalty period in case of early withdrawal in Corporate Fixed Deposits is lower. According to the RBI rules if one withdraws a Corporate Fixed Deposits within a minimum tenure of three months then, the individual is liable to bear the penalty. The charges for penalty and tenure vary depending upon the financial institution and their Fixed Deposits schemes.
- Fixed rate of interest: Under the Corporate Fixed Deposits, an individual gets an interest amount based on the rate of interest decided. The inflation or situation of the market does not have any effect on the interest rates or interest payouts.
Suitability
- Investors wanting to achieve short-term goals: An investor can utilize Corporate Fixed Deposits to meet short-term important goals like travelling, buying a new car, buying valuables for your spouse, and much more.
- Emergency purposes: For emergency purposes also Corporate Fixed Deposits are one of the most advantageous investment alternatives as the funds are not only invested in a relatively safe avenue but also earning till the time they need to be used.
- Senior Citizen Advantage: If you are a senior citizen then, you may also get an additional 0.25 to 0.40% on your Fixed Deposits depending on which Corporate FD plan and tenure is chosen.
Taxation
- The interest income from the Corporate Fixed Deposits is taxable as per the taxable slab rates; if the income from Fixed Deposits in a financial year is more than Rs. 5,000.
- The bank or financial institution will deduct a TDS at the rate of 10% on the interest earned from the Corporate Fixed Deposits. An additional 30% TDS is surcharged for NRI investors.
- One can claim a TDS waiver on interest earned on a Corporate Fixed Deposit by submitting 15G or 15H (in the case of senior citizens). The form is applicable only for Indian citizens with an income below the taxation limit.
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Partners in 769 cities across India
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Customers spread over 3,000 pincodes
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Transactions Executed
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Crore- Transaction Value
Testimonials
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Shashi
Insurance Advisor based at Faridabad
Amazing platform to invest in Mutual Funds. I have been thinking about investing for a long time but not sure how to start. I have been using the Prakash72 app for a very long time and I realized it's very simple and safe.
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Amit Malhotra
Manger with leading Health Insurance Company
I was actually exploring someone who can help me to save tax under section 80C. I read in the newspaper that I should invest in ELSS but I was not sure how to do that. It was very simple to invest under 80C through Prakash72 and later also started SIP through the app.
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Insurance Advisor based at Faridabad
Evangelist, Thinker, Consultant Formerly Managing Director, Miele India Prakash72 has changed the way I have been investing my money. They have educated me and facilitated investments into a totally new investment class for me—Mutual Funds. Having interacted with their able team, I have grown in my conviction about the merits of investing in MF’s and have also benefited adequately over a period of time. Happy to recommend them to all those who are looking for opportunities and avenues to invest their money and see it grow.
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Dhananjay Chaturvedi
Insurance Advisor based at Faridabad
I have a habit of saving money from the time I got my job. I was keeping this money either in my savings account or through recurring deposits. I heard about mutual funds but was not confident how to start. When I met a Prakash72 advisor, I was amazed to know that I could invest through a mobile app and track the portfolio.
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Gokul Prasad Yadav
I’m a 62-year-old Financial Advisor, working in the Mutual Funds Industry for the past 20 years. In 2017, I started working from home. With a huge customer base, I had to commute all day for collecting the clients’ documents. At the end of each day I thought, “Till when will I continue working like this!” He was aware of Mutual Funds but was not sure how to get started. After coming in touch with Prakash72.com, he carefully evaluated the option of dealing with Prakash72.com versus directly with mutual funds and clearly saw the benefit of being part of a larger platform and the great leverage of technology that Prakash72.com offered. He then spent some time trying to understand the basics of mutual fund investing and also obtained an AMFI Registration Number (ARN). Since then, he has been able to help his customers diversify into mutual funds in a much simpler manner, leveraging the state-of-the-art technology. He is clear that he is into this for the long term.
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Amit Malhotra
From traveling in buses to Jaipur and haggling with Mutual Funds companies for collecting clients’ statements to sitting in the comfort of my home and managing all the transactions with a few clicks on my phone, I have come a long way — all thanks to Prakash72. There was a time when I was forced to stop the SIPs of my hard-earned customers as it was impossible to service them given the paperwork that required a lot of commuting and expenses. For every customer’s KYC, I had to go to a cybercafé, pay Rs 10 and get a printout. Then the choice of funds was a complex issue. To make it worse, it was a herculean task to track my brokerage as it was coming from various places. Prakash72 came as a one-stop solution for all these problems and made investing a cakewalk for me and my customers.
Read MoreFrequently Asked Questions (FAQs):
1. What is Corporate Fixed Deposit?
Corporate Fixed Deposits in India are term deposits that can be held for a fixed tenure at a fixed rate of interest. Corporate Fixed Deposits offer a high rate of interest as compared to bank FDs. Investing in the best Corporate FD schemes can achieve and recoup great benefits on your investment.
2. Is it Safe to Invest in Corporate Fixed Deposits?
Yes, it is safe to invest in Corporate Fixed Deposits. However, it is important to do research and associate with a reputed and reliable banking or non-banking financial institution for the best Fixed Deposits plans.
3. What is the Interest Rate for a Corporate Fixed Deposit?
The Corporate FD rates vary depending upon the financial institution. The best rates on Corporate Fixed Deposits in India can be as low as 6% to as high as 8% p.a.
4. Is Corporate FD Taxable?
Yes, Corporate Fixed Deposits are taxable only if the income from interest exceeds Rs. 5,000. If the interest received is above Rs. 5,000 then the TDS rate is 10% (in case PAN details are provided) If PAN details are not provided , TDS deduction on FD interest is chargeable at 20%.
5. What is the Difference Between a Bank FD and a Corporate FD?
Corporate FD has a low penalty on early period withdrawal as compared to bank FDs. Most importantly, the interest rate on a Corporate FD is higher than the bank FD.
6. What are the Different Interest Payment Options of Corporate FDs?
The interest payout options on Corporate FD are available in cumulative and non-cumulative formats. Under the cumulative option, Corporate FD interest is recieved at the end of the FD tenure. While, under non-cumulative FD interest one can opt for monthly, quarterly, half-yearly, or annual interest payouts.
7. What is the Minimum Tenure for a Corporate FD?
The minimum tenure for a Corporate FD in India as per the RBI guidelines is 3 months.
8. How to Open a Corpoate Fixed Deposit Online with Nivesh?
Corporate FD rates or Corporate Fixed Deposit rates vary from scheme to scheme. Any investor can invest in Corporate FD online through Nivesh and can get better returns than Bank FD:
- Create an account in Nivesh by providing your basic details. (If you already have an account then just login into your account)
- On your portfolio page click on the Buy New tab at the right top corner of the screen.
- Select the Corporate Fixed Deposits scheme you want to purchase.
- Your request will be generated and a relationship manager will get in touch with you for getting the investment done.
9. What all Factors to Keep in Mind While Choosing a Financial Institution for Investing in Corporate Fixed Deposits?
Here are some factors that one must consider before selecting a company for creating a Fixed Deposits:
- Regulatory Requirements: The NBFC must have a legitimate license for Corporate Fixed Deposits approval from RBI. Mere registration as an NBFC does not give one the right to offer a Corporate Fixed Deposits plan. Check for the license and approval on the official website of the company.
- Credibility or Credit Rating: Make sure to associate with a leading and trustworthy NBFC for making investments. Check the ratings of the NBFC. Institutes like CRISIL and ICRA provide credit ratings to these companies. Credit ratings are given on the basis of their performance and creditworthiness. The financial health of the company and record of timely interest payments are some of the major drivers of credit ratings along with the strength of its assets
- Tenure: The minimum tenure for Corporate Fixed Deposits is 12 Months whereas, the maximum tenure is 5 years or 60 Months. One must ask the executives about the penalty for early withdrawal and their charges before making the final decision.
- Service and Support: Invest your earnings at a reliable company with good customer service. The optimum customer support and assistance are one of the primary criteria. Talk to the executives, raise concerns, clear your doubts and notice their approach towards your queries.
- Interest Types: There are two types of interest rate systems: Under the Cumulative interest rate, the payout is made at the time of maturity. Whereas, under a non-cumulative interest rate system, the interest payout can be monthly, quarterly, half-yearly, or annually. It is always advisable to have a clear understanding of the interest rate system by the company while investing in Corporate Fixed Deposits.