Day: January 13, 2020

9 Things you Must Know Before Investing in Corporate Fixed Deposit

Corporate fixed deposits are offered by public or private sector companies, which may or may not be a financial institution. Hence, these are also known as company FDs. Corporate FDs are not only offered by lending institutions but also by different public sector housing and transport departments.

On the other hand, standard fixed deposits are only provided by commercial and cooperative financial institutions.

Corporate FD rates are comparatively higher than those offered by commercial and cooperative lenders. Hence, these provide more lucrative investment opportunities, especially to senior citizens.

Few of features you must know about corporate FDs are mentioned below –

  • Regulations governing FDs

Corporate fixed deposits are provided under Section 58A of the Companies Act, 1956. As per this Act, the company will offer more priority to its shareholders rather than its fixed deposit customers when facing bankruptcy or insolvency.

However, several NBFCs offer FDs that are backed with ratings from top credit companies to assure customers of their safety and security. For example, Bajaj Finance Fixed Deposit bear FAAA rating from CRISIL and MAAA rating from ICRA.

  • Premature withdrawal

Corporate fixed deposits provide no interest if the invested amount is withdrawn before a specific period, which usually ranges between 3 to 6 months.

Withdrawing the amount before the fixed deposit maturity period can attract a penalty fee ranging between 0.5% and 1%.

  • Rate of interest

Corporate FD rates can be more than 2% higher than standard fixed deposits. Senior citizens are also eligible to receive 0.35% more interest than other customers. Hence, company FDs are one of the ways to make money after retirement.

  • Premature withdrawal

Corporate fixed deposits provide no interest if the invested amount is withdrawn before a specific period, which ranges between 3 to 6 months.

Withdrawing the amount before the fixed deposit matures can attract a penalty fee ranging between 0.5% and 1%.

  • Lock-in period

Corporate FDs usually have shorter lock-in periods compared to conventional fixed deposits. Usually, tenors of these FD stretch up to 5 years. Longer lock-in periods will offer higher corporate FD rates.

However, investors can opt for auto-renewal and reinvest the return for the original period without submitting any paperwork.

  • Income tax deduction

Commercial and cooperative financial institutions will deduct TDS on fixed deposits if the interest earned is more than Rs.40,000 in a financial year (as per Budget 2019).

In case of corporate fixed deposits, interest of more than Rs.5,000 will attract TDS at 10% only if the account holder’s income falls under a taxable slab. Investors not earning taxable income can file Form 15G (Form 15H for senior citizens) to avoid TDS.

Investing in a 5-year tax-saver fixed deposit will enable investors to save on income tax under Section 80C.

  • Interest payment frequency

Investors can opt for a non-cumulative fixed deposit, which offers interest pay-out monthly, quarterly, half-yearly, or yearly. These types of FDs are beneficial for investors seeking regular income; for example, senior citizens.

On the other hand, cumulative FDs offer returns only after maturity. Usually, the corporate FD rates are slightly higher with cumulative FDs in comparison with non-cumulative ones.

  • Loans against fixed deposit

Similar to standard FDs, corporate fixed deposits also offer loans against the invested amount. Generally, companies offer a discounted sum of the invested sum, which can be 75% in the case of cumulative FD and 60% for non-cumulative FDs.

Companies offer repayments tenors ranging from 90 days up to the maturity of the FD with such financial products. Borrowers also don’t have to pay any extra charges when foreclosing or part-prepaying the loan.

  • Insurance coverage

All fixed deposits offered by commercial and cooperative financial institutions are insured up to Rs.1 lakh by the DGIC. However, corporate fixed deposits are not insured by any agencies. Hence, it is recommended to opt for a company that has goodwill and significant market performance.

Corporate fixed deposits are one of the ideal short-term investment options. Investors can use an FD return calculator to evaluate their earnings before investing and create their budget accordingly.

Author Bio:
Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at HighlightStory

Applications for Video and Movie Downloading on Android

There are myriad of options that you can find in the realm of videos and movies these days. You can always keep yourself entertained. It is all about what you want and how you want it. You can always get the content in the best way and without any hassle if you have the resources. After all, who knows you get everything readily if you have the right platforms with you?

If you love to watch variety of content, do different things and so on; you can do it all. Movies and videos these are easily available in the present time. You can get them all for free if you have the right content. In this post you would get to know about a few of the many applications that are wonderful, effective and absolutely useful. Keep on reading to find out about the apps:


You can get Vidmate online and this app would promise you all the content. You can easily grab the videos and movies that you desire for. You can easily get the videos that are useful, effective, fun filled and enjoyable. Moreover, you would also get the movies and videos in the formats of your choice like MP4, 3GP, FLV, AVI and so on. Also, you can pick any type of resolution that you desire for. The app has been a favourite of the users and you can find the best experience using it.

AVD Download Video 

This application is a wonderful way to get all the videos you like to watch and download. The app has a proper browser that can automatically make out if there is any streaming media on your android device and cater the option to download the same on smart device you are making use of.  The point is the bother of choosing the link and copying it and then pasting it for the procedure of downloading gets really eliminated.  When you make use of this app it is automatically going to give you the option to download and you can click on it in case you want or you can even overlook it if you don’t want to download then.  This way you get everything to choose from.

Video Downloader

The application permits you to download all kinds of video media and that too in the absence of any effort. You just have to paste the URL link of the video that you are trying to download and hence the app is going to download it for you. This app is going to get you a comfortable experience. It does not really matter which kind of video or movie you want to download, once you have pasted the URL of the same in the video downloader app, the downloading would start right away. In this way you would get the content without any problem. The app is free of cost and you might not find any problem in using it.


So, the point is you have to be really careful and tactful.  You can easily get the best experience once you have the right apps installed in your device just you need to install it from 9Apps.