Company Fixed Deposit is the deposit placed by investors with companies for a fixed term carrying a prescribed rate of interest for prescribed time period.
What is the difference between Cumulative Deposits and Non- Cumulative deposits?
In a Cumulative Deposits Scheme, interest is payable at the time of maturity along with the principal. This Scheme is suitable for the people who do not require periodic interest payment. This is also called Money Multiplier Scheme. In a Non-Cumulative Deposit Scheme interest is paid on periodical basis.
What is compounding in Fixed Deposit(FD)?
In case of deposit with Cumulative option, interest accrued is added to the existing deposit amount at the end of every year on 31st March. Cumulative scheme of FD is compounded annually.
For more information about company fixed deposits or corporate FD schemes please visit:- http://www.rrfinance.com/Fixed_Income/FixedDeposit.aspx
FD Schemes – Fixed Deposit Schemes