Other Investment

Companies Fixed Deposit : Government allows finance companies and Non Banking Finance Comoanies(NBFCs)to collect money from public in a form of Term Deposit according to provision of section 58(A)of the Company Act 1958.

Companies are accepting Money for different tenure against that companies give interest slightly higher than Bank’s Fixed Deposit. There is no issue in investing money good rated finance company like HDFC Ltd, Bajaj Finance, Mahindra Finance etc.

One should be ready for taking higher risk than Bank Fix Deposit , Plus hereInvestment is not covered under Deposit Insurance and Credit Guarantee Corporation as Bank FD.