Tuesday, December 18, 2012

Fix Deposits by Companies 1

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,

  1. Manufacturing Companies ( Non Banking-Non Finance Companies)
  2. Non Banking Finance Companies (NBFC)
Points to consider before choosing companies:
  • 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.

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