What is a Fixed Deposit?
Fixed Deposit, also known as Term Deposit, is an investment product that provides guaranteed returns to its investors. It invests for a fixed tenure at fixed interest rates that are offered at the time of opening a Fixed Deposit.
Offered by: Banks, Non-Banking Financial Companies (NBFCs), and corporate institutions.
Higher Returns: NBFCs and Corporate bodies offer higher interest rates than banks.
Why Choose Fixed Deposit Schemes for Safe Investment?
It is, also called Corporate Fixed Deposit, similar to regular fixed deposit schemes, but they are provided by corporate entities and NBFCs.Similar to banks, the Reserve Bank of India allows certain NBFCs to take deposits at a fixed interest rate and duration, ensuring regulatory oversight. Investors must look at solutions that offer steady returns, and Fixed Deposit stand out for their attractive interest rates.
Stable Returns
Fixed deposit interest rates don't change even when market conditions change. Benefit from this stability with steady, low-risk returns.
Flexible Tenure
Fixed Deposits provide duration flexibility, with options spanning from a few months to several years to match your financial needs.
Regular Payouts
Choose from flexible interest payout frequencies - monthly, quarterly, or annually - based on your cash flow requirements.
Senior Citizen Benefits
Additional interest rates for senior citizens help maximize returns during retirement years with special tax benefits.
Frequently Asked Questions (FAQs)
Clear answers to the most common questions we receive.
NCD offers fixed returns at predetermined interest rates, making them attractive for investors seeking stable income. They are less volatile than equities and can provide regular payouts through monthly, quarterly, or annual interest options.
In an NCD investment, investors lend money to a company for a fixed period in return for regular interest payouts and principal repayment at maturity. NCDs are listed on stock exchanges, allowing investors to buy or sell NCDs before maturity.
A secured NCD is backed by the company’s assets, offering added safety in case of default. An unsecured NCD, however, does not have asset backing and carries higher risk but may offer higher NCD interest rates as compensation to investors.
Investors can apply for NCD (Non-Convertible Debenture) issues online through their demat account or net banking platforms using ASBA (Application Supported by Blocked Amount). You can also explore and apply for upcoming NCD issues conveniently through trusted financial platforms like rrfinance.com, which provides detailed NCD information, issue dates, ratings, and a simple online application process for seamless investing
Before making any NCD investment, investors should analyze the issuer’s credit rating, interest rate, repayment history, and tenure. A higher-rated NCD indicates lower credit risk. Always read the NCD prospectus for detailed terms and conditions.
Interest earned from NCD investments is taxable under the “Income from Other Sources” category. Short-term and long-term capital gains tax may apply if NCDs are sold on the exchange before maturity. The tax rate depends on your holding period and income slab.
Once the NCD issue closes, the company allots debentures based on subscription levels. Investors can check NCD allotment status on the registrar’s website using their PAN, application number, or demat details. Allotted NCDs are credited directly to the demat account.
Yes, NCDs can be sold before maturity if they are listed on the stock exchange. This provides liquidity to investors who want to exit early. However, the NCD market price may vary based on interest rate movements and credit ratings.