A corporate fixed deposit is a type of investment where an investor can deposit a sum of money with a company for a fixed period, at a fixed rate of interest. The interest rate is usually higher than bank fixed deposits.
Corporate fixed deposits are relatively safe, but there is always some degree of risk involved. It is important to do your due diligence and research the credit rating and financial health of the company before investing.
The interest earned on corporate fixed deposits is taxed at the investor's slab rate of income tax. TDS (Tax Deducted at Source) is also applicable on interest earned on corporate fixed deposits.
The minimum investment amount for Bajaj Finance Limited fixed deposit lies between Rs. 15,000 and Rs. 1 crore.
The tenure of corporate fixed deposits can range from 12 months to 60 months.
Yes, most corporate fixed deposits can be withdrawn prematurely, but there are prematurity charges for doing so. It is important to check the terms and conditions of the investment before investing.
If the company defaults on payment, the investor may lose their entire investment. This is why it is important to invest in companies with good credit ratings and a track record of financial stability.
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