Investing In Company Fixed Deposits? 8 Things You Need To Check

2. Background of the company

After all, it is your money that you are investing and as such you need to be extra careful. Do not rush into anything. Do thorough checks before you invest your money in a company FD. Do a thorough research on the company’s background, past performance, customer service and financial performance.

Also do a proper research on the directors or promoters of the company. This will give you a fair idea whether the company is secure enough for investment purposes.

3. Additional risk

Company fixed deposits have higher risk than bank fixed deposits because these type of deposits are unsecured, if the company goes bust you will lose your money, and unlike banks, they don’t have any backing of the RBI.

A lot depends on the performance and reputation of the company of course. A strong company that regularly pays out dividends and has no losses is perhaps a good bet, whereas a company that has made regular losses should raise eyebrows.