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Currently, most of the banks are offering interest rates on fixed deposits in the range of 6% to 7%. Although fixed deposits with the banks are safe, post-tax returns of the bank sometimes do not even beat the inflation rate. So it is must for the investors not to stick with the traditional investment philosophy and to look for better returns.
But Investing in the stock market or mutual funds is not everyone’s cup of tea. You need to know various guidelines for selecting better mutual funds to garner healthier returns. Direct equity investment is not at all suggestible to the newbie so sticking with the safe investment avenue with better returns than the bank fixed deposit is the need of the time.
This is the scenario where Company Fixed Deposits fits appropriately. The company fixed deposits are very popular among the investors having low risk-appetite such as senior citizens who cannot afford to earn less but cannot afford to lose money at any cost.
Company fixed deposits offer interest rates which are generally higher by 1% to 3% in comparison to the bank fixed deposits for a similar tenure. Similar to bank fixed deposits, company fixed deposits also offers various options of interest payment such as monthly, quarterly or yearly. However, company fixed deposits offer attractive returns but it comes with some inherent risk which one needs to keep in mind while investing. Following are some of the risks and rules which one should follow before investing your hard-earned money.