In exercise of the powers conferred under sub-section (1) of Section 406 read with sub-section (1) and (2) of 469 of the Companies Act, 2013, the Central Government hereby makes the following rules.
To encourage and afford all facilities for cultivating and propagating thrift, saving habits and to render all financial assistance to its members by receiving long and short-term deposits and in particular Savings, Recurring, Fixed, and other Deposits from members are as followed by law.
Fixed deposits are financial instruments that involve a safe investment for the desired tenure with the intention of earning profits at a fixed rate of interest. Most investors opt for fixed deposits as they offer significant returns while giving them the liberty to choose the tenure and payout frequency for themselves.
Investors can either opt for a bank fixed deposit or a company fixed deposit. Most people opt for bank FDs considering them to be the safer one among the two- in doing so, they end up missing out on better income opportunities as company FDs provide higher returns than those of banks.
Company FDs are more flexible and convenient when it comes to the withdrawal of the deposited funds. Depositors can also avail loans against their fixed deposit is required if required. The interest payout can be monthly, quarterly, bi-annually, and annually.
Individuals belonging to varying income brackets can opt for company FDs. With sufficient research on the credit rating, scheme details, and application procedure, an investor can earn great returns from a secure company FD.
The saying fits aptly to the fixed deposit market whose weak sentiments seem to be a thing of the past with returns starting to tread the upward territory. The latest is that the leading CREDITO India Nidhi Limited has launched a new fixed deposit scheme offering interest to the tune of 12.50% per annum for an 60-months deposit. The minimum deposit amount needed to earn such interest is ₹50,000.