Fixed Deposits mobilized by companies are governed by the provision of Section 58-A of the Companies Act 1956. The Fixed Income instrument provides Fixed/committed return on the amount invested and is the most convenient investment options to all investors. Fixed Deposits can be classified into deposits received from,
- Manufacturing Companies ( Non Banking-Non Finance Companies)
- Non Banking Finance Companies (NBFC)
- Go for the company which is in operation for at least 10 years.
- The company should be a Public limited/Government company.
- The company should be a prior maturity and dividend paying company.
- Check out the management of the company, it should be known and well established management.
- Do go through track record of the company.
- And last but not the least, in fact most important check out rate of interest offered by the company.