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Why should you open a company FD account in 2019-20?
Fixed deposit rates in India are currently at a high, making it the best time to invest in the low-risk, fixed-interest option. As fixed deposit issuers adjust interest rates based on the repo rate, when it increases, borrowing finance becomes more expensive while investments become more lucrative. However, in April 2019, the Reserve Bank of India decreased the repo rate by 0.25%, which means that eventually, FD interest rates will experience a dip. As a result, investing now ensures better return on investment. However, don’t select the first FD you come across. Make it a point to invest in company fixed deposits. 
 
Take a look at why these FDs are a better pick.
 
You can earn better returns due to higher interest rates
Amongst the various benefits of a fixed deposit from a company/NBFC, one that stands out is a higher interest rate. In order to draw more investors and raise finance, these issuers typically offer higher interest rates. An example of an NBFC that offers one of the best fixed deposit interest rates in India is Bajaj Finance. The Bajaj Finance Fixed Deposit offers 9.10% interest for a 36-month FD to senior citizens, and 8.75% interest to regular investors, provided you opt to receive the interest at maturity. 
 
You can invest even if you’re on a budget
Besides high interest rates, company FDs also give you the option to make investments as per your convenience, even with a low amount. Typically, you are required to invest at least Rs.5,000–Rs.25,000, depending on the financial institution you choose. With a low minimum investment amount, you can invest even when you are on a budget.
 
You can get financial security owing to high credit ratings
Unlike bank or post office FDs, company FDs are considered to be riskier investment options. However, the risk factor is dependent on the credit rating that the FD has. The two major credit rating authorities in India are CRISIL and ICRA. It is imperative that you check the ratings given by these agencies before investing in a company FD to gauge safety. Bajaj Finance’s FD, for instance, has both ICRA’s MAAA rating and CRISIL’s FAAA rating. This means that the deposit offered by Bajaj Finance has the highest ratings and investing in it does not expose you to any risk.
 
You can tailor your investment to suit your goals
Company FDs are also very flexible as you can choose the tenor. With options ranging from 7 days to 5 years, you can execute your financial strategy as per your wishes. You can also take advantage of the higher interest rates offered on special-tenor plans and use them to grow your finances significantly.
 
You can enjoy liquidity through a loan
Apart from high returns, company FDs offer you superior liquidity too. By pledging your FD as collateral, you can access a loan in case of an emergency or cash crunch. With this option, you don’t need to break your fixed deposit to access funds, as you can get a loan amounting to up to 90% of your investment. Additionally, if you want to avoid taking a loan, you can prematurely withdraw your FD by paying a small fee. 
 
If your primary goal is to maximise returns, investing in a Bajaj Finance FD is your best bet. Choose it for the high FD interest rate it offers, as well as its other winning features such as simple eligibility and speedy application. In fact, you can apply online in minutes and get started on your investment journey immediately.
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