How To Get maximum Returns from Company Fixed Deposits in India?

How to Get Maximum Returns from Company Fixed Deposits in India?

The inflation is the major killer of your wealth put in the fixed deposits. The fixed deposits earn only 6-8% of annual interest income while the inflation rate in India right now is 12-14% per annum and it means that your FDs are actually reducing the purchasing power of your wealth right now.

So What is the Answer of this problem? Well, The answer is – Company Fixed Deposits.

The main advantage of corporate fixed deposits is that, they offer higher interest rate than the regular bank fixed deposits. And that’s why you can earn more money from the company FDs.

Recently, the corporate deposits have seen the inflow in it. Because in past several months the Sensex has sky rocketed and given the investors excellent returns and that’s why the smart investors are now booking their profits and shifting their profits to the Company fixed deposits to earn higher fixed income.

On and average AA-rated company fixed deposits offer 2% higher returns than the regular bank fixed deposits which is really a good thing.

However, keep in mind the following things before investing in Company FDs

- Always see the bond ratings before investing – AA or AAA bond ratings are the best

- Know the risk

- See the profits of the company before investing in FDs

- Ask your financial advisor before investing in the FD

- See the review of that FD on the internet before investing

- Divide your money in different FDs

- Just because the company FDs offer higher returns, it is not the absolute indication of investing in it.

- Invest MAXIMUM 10% of your total portfolio net worth in the company FDs

If you keep in mind the above criterias, than the Company FDs will be a lucrative investment vehicle to generate fixed regular income for you.