What Makes Company Fixed Deposits Special In Rising Interest Rate Scenario
Investors India|June-2018

The rise in the interest rates seems imminent.

Vishwajeet Parasbar
What Makes Company Fixed Deposits Special In Rising Interest Rate Scenario

And smart investors need to be one-step ahead in making use of the upcoming opportunities. With global oil prices not willing to mellow down, the impact on India’s already huge oil import bill could lead to inflationary conditions within the country. In order to keep the inflation under control, Reserve Bank of India (RBI) is expected to hike the repo rate in near future. Industry experts expect RBI to hike the repo rate by about 0.50 percent during this financial year itself. Rise in interest translates into higher return for fixed income investors. Banks are currently offering around 7per cent for a 1-3-5 year deposit. Another better alternative to such deposits is the company fixed deposit (CFD). The deposits made by investors in companies that earn a fixed rate of return over a period of time are called company fixed deposits. Along with manufacturing companies, financial institutions and NonBanking Finance Companies (NBFCs) also accept these deposits.

This story is from the June-2018 edition of Investors India.

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This story is from the June-2018 edition of Investors India.

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