Saving for the future is prudent; we never know what waits for us there. So, when the cash flow is in favour, saving is a must. Everyone wants to save money in a way that it works in their favour so that the funds maximize itself without any extra efforts.
People either invest in shares or stock market or go for fixed or regular deposits, but the biggest question is – which is the best FD plan? As fixed deposits are the safest form for money maximization and secure deposit, the problem is which, between a bank or NBFC and a company, will provide better facilities, safety and the highest interest rates.
Below are the various factors to compare and analyze which one to opt:
The facility of deposit: Not all companies offer a fixed deposit facility; the options are quite a few; on the other hand, most banks and NBFCs provide this facility.
Safety and interest: The government backs most banks and NBFCs. As a result, banks and NBFCs fixed deposits are much safer compared to the company’s fixed deposits; the latter is the riskier form but provides better interest rates than the former. So, while looking for a platform to maximize your money, company fixed deposits may work for you; however, for a platform to optimize your cash but in a secured way, look towards banks and NBFCs fixed deposits.
Time frame: Company FDs mature much earlier than that of banks and NBFCs. While company FDs have a time frame of 6 months to 2 years, banks and NBFCs FDs have more extended time frames that range from few months to few years.
The medium of deposit: Both types of FDs require a certificate of deposit. However, while trusting a company for deposits, you must ensure to collect the form from the official website of the company or the company itself.
Other factors to take care of:
- Market conditions: Make a list of all possible options for making a fixed deposit.
- What suits your needs and requirements: every company and banks and NBFCs have certain policies that they follow, to exist in the market these policies differ from one another. Understand these policies and determine what suits your needs the best.
- Minimum period, auto-renewal and interest rate: After you have set your priority list, you need to analyze which company/ banks and NBFCs has the minimum period so that you don’t have to wait forever for your deposit to mature. It’s good to have an auto-renewal facility, so you can subscribe to it if need be, and check which one provides you with the highest value for your money.
- Method of subscription: Now look for the one that matches all your needs and provides you with a hassle-free way of making a deposit and easy withdrawal at maturity.
If your concern is safety, you can opt for banks and NBFCs, and if your concern is better facilities and highest fixed deposit rates, choosing a company fixed deposit will be a better approach. It is good to utilize money but caring for its safety should also be kept in mind.