For those averse to capital market risks and uncertainty, fixed deposits are the right choice as they are the safest investment bet. Any change in the FD rates will only affect new investors. Even in that, fixed deposits offered by corporates and HFCs furnish a comparatively higher rate of interest than Bank FDs FD rates, Investors have little to worry about as their deposits are locked for a certain number of years, during which they can opt for non-cumulative interest payment of their choice  monthly, quarterly, half-yearly or annually or cumulative, where the principal amount and the total interest is paid out on maturity The power of fixed deposit lies in compounding, where the money earned over a period is reinvested Many deposit taking corporate houses and housing finance companies offer fixed deposits through a wide network of brokers and relationship managers across the country who provide impeccable service to the customers.

Not all companies and HFCs can offer deposits in India. Apex bodies issue licenses to applying organizations, only after which they can accept deposits from public Corporate FDs and those offered by HFCs are rated by credit rating agencies depending upon various factors. Fixed Deposits rated as ‘AAA’ or higher indicate high levels of safety and can be considered by investors. FDs are considered as safe investment, however, to mitigate any miniscule risks one should verify the offering company’s fundamentals, financials, reputation and brand vintage along with credit ratings before executing the transaction

Just like bank FDs, interest earned on corporate FDs and fixed deposits offered by HFCs are also taxable at the highest income tax bracket of the deposit holder. However, the investor needs to pay tax only if the annual interest income from the deposit is above INR 5,000.FDs offered by companies and HFC can be a great bet laden with various benefits and exciting rate of returns, almost at par with what most Indian investment instruments offer, that too with minimal risk. However, it is prudent to do a thorough research before you pick your favourite fixed deposit.