What are Company Fixed Deposits?

A good majority of the population is not aware of the option of fixed deposits existing outside the banking sphere. This lack of awareness may lead to our own financial losses due to lost opportunity and wrong investments, since investing in company fixed deposits is a great way to earn higher Returns on Investment (ROI) compared to investing in normal bank fixed deposits. Investors can put their funds in a company fixed deposit scheme offered by various sources such as manufacturing companies, financial institutions, NBFCs, etc., and get a fixed rate of returns in the form of interest over a stipulated period of time.

Company fixed deposits is an attractive option for investment since it is relatively safe compared to investing in stocks and shares although slightly riskier than a normal bank deposit, and offers incomparable interest rates on a short term basis. The minimum lock-in period is just six months. There are income tax benefits as well - Income Tax is not deducted at source if the interest on  income is up to Rs 5,000 only in the given financial year.

Company fixed deposits are an attractive investment choice since it offers more returns than bank fixed deposit schemes, but care has to be taken while choosing the company where you want to deposit in order to minimize risks involved. 

Before investing in a company fixed deposit watch out for red signs such as low credit rating by credit rating agencies such as Crisil, India Ratings, CARE etc., on a rating scale that shows risk and safety. Do not go by the attractive offers from companies, rather go by their safety ratings since companies try to hide their flaws with marketing gizmos. 

Do a thorough research on the company background, including their payout records, the fund liquidity and lock-in period, interest payment frequency, etc., and make an informed decision on company fixed deposit investment options.

RBI to revolutionize Banking in India

RBI is set to bring in revolutionary changes in banking with it's final guidelines for issuing licences for payment banks and small finance banks. The present oligopolistic banking structure has benefited private sectors banks, with no show of competition offered by public sector banks.  Technological innovations in banking , implemented through online banking, net banking, ATM banking, Social Network banking etc has already wowed customers but this actually is a blindfold that prevents the customers from focusing on the mediocre customer service and assistance provided by the Banks and the high charges levied.

RBI's new policies would indeed throw a spanner in the works for private banks since it would threaten this market power play that they had been enjoying so far with small finance banks entering the scene. RBI is observed to have become more liberal in issuing licenses to genuine Non-Banking Finance Companies (NBFCs) and Micro Finance Institutions (MFIs), as well as mobile companies and so on (E.g : Airtel Money, Paytm, Digital Wallets). Small finance banks would have to lend 75 percent of their loan portfolio to priority sectors such as agriculture and small businesses and a huge percent of the loans should not exceed Rs 25 lakh.

RBI guidelines state that mobile companies, retail chains, NBFCs, public and private sector companies, etc. can set up payment banks. They just need Rs 100 crore of capital and can offer savings or fixed deposits up to a maximum of Rs 1 lakh. These guidelines for payment and small finance banks will open up the banking sector to the economy's real potential, make banking more customer friendly, encourage financial inclusion, as well as bring down margins.

A Used Car Buying Guide : Things to Know

If you have been looking out to buy a car, you might have come across various hassles. Your dream car is almost always based on vague ideas and almost all buyers do not research well before going in to purchase a car. There are a lot of dilemmas that arise when you face the most important question on all - should I buy a used car or a new one? Buying a second hand car has been considered a really good option by many because of factors such as affordability, benefits that come along with depreciation, attractive insurance rates, wider range or selection and so on.


People, mostly students, tend to buy such affordable and reliable used cars. "Student cars", as we can call them, have to be cheap not just because of the matter of funds available for purchase, but also because, these cars will be put to rough use and for purposes such as learning to drive. In parents' language, a student owned car will have the highest probability of facing trauma such as more miles to run, more damages to face, minor and major accidents to be considered, and so on. Thus in this case , a used car seems to be a much better choice than a brand new one.

Apart from students, a majority of the population find used cars to be a feasible option. But a buyer has to take a lot of care and thought while purchasing a used car in order to make a informed decision that he/she wont regret later on.

Used Car Buying Guide Tips

Here are a few things that you have to be careful about when buying a used car -

1. Plan and organize your budget - Having an idea of how much you can spend on a car can help you pick out cars and models that will fall within your affordable price range.
2. Choose the right model - Choose a model/ make of the car which is ideal to your requirements. Even though most buyers go in for luxury cars and cars the "look good" , it would be wiser to make practical decisions and by weighing the scale based on the benefits of acquiring a particular model.
3. Test Drive - Test driving is not just for new cars. It applies for new cars as well. You have to take the car for a drive in order to see whether the car has been well maintained and in good condition, whether it has any problems and also whether it suits your driving pattern. Along with making a mechanic check the car , a test drive helps in further examination. You will also be able to estimate how much more costs would be involved if you have to do more work/repair on the car
4. VIN Number - The most integral part of ensuring whether a car is genuine is by checking it's Vehicle Identification Number. IT is a 17 digit number stamped onto specific parts of the car such as engine, chassis, etc. The buyer has to check whether all VIN numbers match, if they don't match it means that these parts have been changed or worse case scenario - it is a stolen car.

Things to inspect - Check the following things before buying a car :

• The form of the car has to be checked when the car is on a level platform in order to make sure that no part of the car is sagging or twisted.
• Check the paint on the car carefully to note any rust, indents, scratches and so on.
• Check the trunk of the car to make sure that it is in good condition and that there is no water entry due to holes or cracks, or any other damage.
• Check the tire alignment of the car.
• The frame of the car should not be damaged. It should be bolted on to the car.
• Ensure that the under body of the car is not rusted.
• Check under the hood, especially the engine, for damages.
• Check the inside of the car thoroughly for damaged upholstery, air conditioner, odometer reading for mileage,