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FD & Bonds


What are Company Fixed Deposits?

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 Non-Banking Finance Companies (NBFCs) also accept these deposits. 

Benefits of Company Fixed Deposits

  • Higher interest rate: The rate of interest is 2-4 percent high, as compared to the interest rate offered by banks on fixed deposits
  • Regular income: Depending on the scheme, investors have the option to receive interest at monthly/quarterly/half-yearly/yearly intervals
  • Lock-in period: The minimum lock-in period for most of the schemes is six months, i.e. investors can withdraw their money post six months, anytime
  • TDS: TDS is not applicable if interest earned is equals to or less than 5,000 for a year in a single company. 

Important things to consider:

  • Investors must carefully read the application form
  • Check the rating of the company before investing
  • Do a background check of the company before putting money into it
  • Companies may change the interest rates on the fixed deposit schemes without any prior notice

Pramada provides the simplest investment solution for the following companies amongst others:

  • HDFC Ltd
  • Bajaj Finance Ltd
  • Shriram Transport Finance Co Ltd
  • Mahindra Financial Services Ltd


Strengthen your bond with your money

What is a bond?

A bond is a debt security, in which the authorised issuer – company, financial institution, or Government, offers regular or fixed payment of interest in return for the money borrowed by the said issuer. It is for a certain period of time.

How do bonds work?

  • When you purchase a bond, the authorised issuer borrows money from you for a fixed period of time. 
  • This money earns you a predetermined interest rate at regular intervals. 
  • The principal amount is repaid at the end of the maturity period. 

How are bonds different from stock:

  • Bond holders are lenders whereas stock holders are owners in the firm/organisation/company. 
  • Bonds have a defined term of maturity while stocks have no fixed time period. 

Pramada deals in the following types of bonds:

  • Corporate Bonds
  • Government of India or Reserve Bank of India
  • Tax Free Bonds
  • Capital Gains Bonds
  • Infrastructure Bonds

Pramada Advisory only acts as a mediator between its clients and the company inviting/accepting fixed deposits, known as Principal Company. Neither Pramada nor its employees, directors,  etc., endorse and/or certify the information provided by the Principal Company and shall not be liable (legally or otherwise) under any circumstances.