How To Select Right Corporate Fixed Deposit – BM Fiscal

When we heard the word fixed deposit. The first thing came to our mind is bank deposits. So we can save our money or invest it. But it is not the only options we have. We can also use corporate fixed deposits to invest our money. Like any other investment schemes company fixed deposits also have some pros and cons.

But to invest in company fixed deposit we need best financial investment advisor so that he can tell us what best financial investment scheme is and which policy is at low risk and using what we can gain high profit.

So before investing in company fixed deposits, we should consider following points.

1. Corporate FDs are also not as secure as bank FDs. Bank FDs, for instance, provide security up to the investment value of Rs 1 lakh, which is not the case with corporate FDs. "the investors' money will, therefore, be at risk if the company is facing bankruptcy. This is the primary reason for corporate FDs to have superior interest rates compared to bank FDs.
2. Corporate fixed deposits carry a risk, called default risk. Such risk may occur in case of premature withdrawal of deposits by the investors, which may lead the company to a cash-crunch situation. Besides, if a company is going through bad times, then it may not be able to return one's maturity amount.
3. Most of the corporate fixed deposits do not allow pre-mature closure before 6 months. In case of withdrawal of the investment before maturity, the investor has to pay penalties. "the pre-closure procedure of corporate fixed deposits may also be tedious as it requires a lot of paperwork.

While investing our money it is mandatory to think about which investment consulting firms to choose. Because the rate of interest varies from the firm to firm so we have to choose best investment firm which is truly worthy and having experience in this field. Also with the highest rate of interest so we have to find that perfect combination.

BM fiscal point advisors Pvt Ltd, we provide you with the most innovative and customized wealth management solutions. We have over 50 man years of experience in handling corporate, hni, NRI's wealth diversified over various asset classes such as Indian equities, international equities, debt products, mutual funds (unit trusts), real estate, etc.

Bm fiscal point is a joint venture between Bm financial advisors and fiscal point consultants pvt ltd, two successfully running wealth management companies in india. Together we manage about 80 million usd of retail hni wealth and about 200 million USD of the institution and corporate wealth. Our comprehensive and research-backed range of products and services embrace all assets classes. Our key attribute and differentiator has been our proactive, advisory approach. At Bm fiscal point we provide you with the best technology backed platforms ensuring clients’ experience hassle-free and paperless transactions.

Some tips before you invest in fixed deposits:

? Before putting resources into any organization's fixed deposit scheme, the application shape for the same must be considered in detail to comprehend the standards identifying with the untimely withdrawal of store and so on. Likewise, "the organization's financials, similar to benefits earned by the organization over the most recent 3 years and profit track record which are compulsorily imprinted in the application frame, must be investigated before choosing to contribute.

? You should not be attracted by high-interest rates alone and they should check the reputation and track record of the company in which they are planning to invest, by doing some research on the same or by discussing to a financial investment advisor.

? Investors should not invest a major portion of their funds in one single company fixed deposit scheme. Instead, you should invest that in different 4 to 5 different companies.

? Go for companies with a rating or at least a rating anything below that means your money is at high risk.

? Track the credit rating of your deposits. If the rating slips consider taking out the money if cause some penalty.

Benefits of company/corporate fixed deposit:

? The interest earns from this deposit directly goes to account. And we can modify it on a monthly, weekly, quarterly and yearly basis.

? This interest will help you in future and to pay your expenses.

? Nomination facility available.

? High rate of interest than bank FDs.

? No tds if interest is only 5000 in a financial year.

? Flexible tenure ranging from 6 months to 7 years.

Corporate deposit is good and may be best in some cases if we take all above points in considering. It helps us to be financially strong and risk associated with this is not experienced at all. So it gives us a good and peaceful life we just have to choose what is best for us.