FIXED DEPOSIT 

What are Company Fixed Deposits?

The deposits made by investors in companies that earn a fixed rate of return over a period of time are called Company Fixed Deposits. Along with manufacturing companies, financial institutions and Non-Banking Finance Companies (NBFCs) also accept these deposits. 

Benefits of Company Fixed Deposits

• Higher interest rate: The rate of interest is 2-4 percent high, as compared to the interest rate offered by banks on fixed deposits
• Regular income: Depending on the scheme, investors have the option to receive interest at monthly/quarterly/half-yearly/yearly intervals
• Lock-in period: The minimum lock-in period for most of the schemes is six months, i.e. investors can withdraw their money post six months, anytime
• TDS: TDS is not applicable if interest earned is equals to or less than 5,000 for a year in a single company. 

Important things to consider:

• Investors must carefully read the application form
• Check the rating of the company before investing
• Do a background check of the company before putting money into it
• Companies may change the interest rates on the fixed deposit schemes without any prior notice

Pramada provides the simplest investment services for the following companies amongst others:

• HDFC Ltd
• Bajaj Finance Ltd
• Shriram Transport Finance Co Ltd
• Mahindra Financial Services Ltd

BONDS 

Strengthen your bond with your money

What is a bond?

A bond is a debt security, in which the authorised issuer – company, financial institution, or Government, offers regular or fixed payment of interest in return for the money borrowed by the said issuer. It is for a certain period of time.

How do bonds work?

• When you purchase a bond, the authorised issuer borrows money from you for a fixed period of time. 
• This money earns you a predetermined interest rate at regular intervals. 
• The principal amount is repaid at the end of the maturity period. 

How are bonds different from stock:

• Bond holders are lenders whereas stock holders are owners in the firm/organisation/company. 
• Bonds have a defined term of maturity while stocks have no fixed time period. 

Pramada deals in the following types of bonds:

• Corporate Bonds
• Government of India or Reserve Bank of India
• Tax Free Bonds
• Capital Gains Bonds
• Infrastructure Bonds

Disclaimer
Pramada Finserv Pvt Ltd only acts as a mediator between its clients and the company inviting/accepting fixed deposits, known as Principal Company. Neither Pramada nor its employees, directors,  etc., endorse and/or certify the information provided by the Principal Company and shall not be liable (legally or otherwise) under any circumstances.