Company Fixed Deposits V/S Bank Fixed Deposits

Fixed Deposit, a banking term that can easily scare those who are unaware of the lingo used by top class bankers and investors. Let’s break down this two-word idea into a much simpler format.

● Fixed – Something that stays still, preferably stable and safe from harm.

● Deposit – An investment; something which gives some returns.

Now when we link them, we get the idea of a ‘stable investment but with a certain degree of profits’. Fixed Deposits can be confusing especially when investors wish to invest yet don’t understand the schemes.

FD is meant to invest your money for a long period of time, and gaining a huge sum of interest a.k.a profit for not withdrawing the money before the maturity date hits. It is a banking instrument for investing money and earning gains.

Advantages for Fixed Deposit

Higher the Interest Rate- Higher the returns and also you get to choose the terms and dates. 

Disadvantages for Fixed Deposit

We cannot think of any except maybe the long maturity dates, but then even that is chosen by the investor.

Bank and Company Fixed Deposits

You could invest via two channels, through your bank or in a company FD. People usually pick a bank as they trust a government controlled organisation more compared to a company or an MNC. However, if we look closely, the difference is startling in the way of how much returns the investor actually gets!

An FD in the bank could give you a maximum of 7-9% based on its capacity and other investments. It seems quite less compared to a company FD. While a prospering company could easily give a maximum of 10% of interest for your investment. It is tricky to find out which company is the right one for you and that is where a company’s credit rating jumps in.

A credit rating system is present to ensure that companies can and will end up repaying their investors, even in times of distress. This credit rating is assigned to a fixed deposit instrument by a credit rating agency after doing a thorough analysis of the business risks, financial risks and the overall management quality.

A major inconvenience is the loss of flexibility, an FD in a bank means no withdrawing rights (under certain circumstances, you can break the FD but pay a penalised fee or get a lower rate of interest). Thus, making you pay additional money from your pockets to get back your own money. That hardly seems fair!

A company FD, on the other hand, allows a variety of schemes that can be manipulated according to your needs and time periods. You could pay a monthly interest or at quarterly intervals. This then allows you as an investor to earn some quick cash on the side.

Company FDs can be used by any target audience; working class, senior citizens, housewives, and even those who are in the zero or low tax bracket. A good idea then is to diversify your funds into different companies which will then lower the chances of risk.

We do suggest to read the application form in detail and to clarify your worries before investing in a company. A track record of the company’s past interest schemes could always provide a good source of information. Another piece of advice is to always keep a check on the credit ratings of the company and to minimise risk by clearing out your money from the company if you see it fall.

On the whole, a company fixed deposit is a good investment idea for the fixed income group investors who are on the lookout for safe returns. Not all can afford the volatile markets, and thus a company fixed deposit can help keep you grounded and your money safe, earning a higher rate of interest at the same time.

How Can Businesses Intelligently Insure Their Goods and Services?

From the moment you start a new business, you expose yourself to many risks. Even before you start employing people, provide services, or sell goods, you need a reputable insurer by your side. 

A minor lawsuit from the customers, suppliers, or employees can bring a business to its knees even before it gets off the ground. Fortunately, you can take the right steps to protect your business in the formative years by acquiring the following insurance policies:

Professional Liability Insurance

As you embark on a new business, you must encounter some challenges in your learning curve. In most cases, you might make some mistakes along the way. 

Whether you make the mistakes through omission or commission, the errors might have some financial implications on the other stakeholders. Whether you err in the development of defective goods or cause a customer some pain, you might have to face a court battle. 



The professional liability insurance policy will come in handy whenever you need to reimburse the aggrieved stakeholders and compensate the customers for the pain you caused.

Property Insurance

Whether you lease or buy your office space, property insurance is vital. The policy will cover your business against theft, fire, floods, or any other calamity that might befall your property. 

If your business is in a flood-prone zone, you need to notify the insurance company beforehand. Such calamities can cripple your business, especially if you are struggling to grow your startup. 

The property insurance covers the goods that might be destroyed in the event of a fire or floods.

Workers’ Compensation Insurance

Whether you are running a short-term project or employing a couple of people, you need the worker’s compensation policy. This policy covers your employees by compensating them whenever injuries and accidents occur at the workplace. 

If you are in the construction sector, this policy can cover your business against the many accidents that are likely to occur. In addition, your employees will get the health and disability policies for their families.

Business Interruption Insurance

If you are unable to operate your business for some time, you need the insurance policy to keep your operations running smoothly. If a calamity forces you to shut down for a while, you will need to pay your loans or retain your employees. Some companies, such as Integrity Transportation Insurance, know that insurance policies for transportation arte also a good idea.

While a property damage policy will reimburse you for the affected goods, you need a cash bailout to get your business back on track. If you do not have significant cash reserves to tap into, the business interruption policy will work to your advantage.

When running a business, it’s incredibly important to make sure you are properly insured. By taking the time to make providence for this, you will make sure your business will be around for years to come. Maintain your business and it will thank you in the long run.

How to Manage Your Finances and Trust Funds Like a Professional

Research from the reputable financial giant Bankrate indicates that significantly more Americans drink coffee on a daily basis than own stock market investments, 61% to 48%, respectively. 

About one-quarter of United States citizens are fortunate enough to inherit money through trust funds. As indicated, not everybody can afford to invest money, meaning those who can and do stow away money for themselves and others are of fortunate financial position. 

It's easy for people to ruin their finances and trust funds, causing financial ruin and worry in their own, and others', lives. Here are several tips for managing personal finances, just as a professional would.

Focus on Retirement Accounts Early On

Some retirement accounts are matched dollar-for-dollar by employers. Investing in these accounts, most notably the 401(k) plan, earns extra income by simply saving it in a retirement account. 

These plans should be matched until employer's maximum contribution amounts are reached. While such investments don't earn interest over time, unlike stocks, bonds, and mutual funds, employer matching is nearly always more valuable for your interim and long-term financial position. 



If your employer offers multiple retirement accounts, invest in them until employers won't fund any further - it's unarguably worthwhile.

Decide if Trust Funds are Worth Using

Individuals with little disposable income shouldn't stash away assets into trust funds, unless they're 100 percent, positively, absolutely sure that money wouldn't better serve any purposes in the owner's lifetime. 

Some companies, such as Home State Bank, know that trust funds can provide lifetimes of financial support for beneficiaries that inherit them. However, the most important aspect of considering a trust fund is timing. 

If you have a high income, with mountains of disposable income laying around, trust funds can reduce which tax bracket you're in. Situations not benefiting significantly from such a tax break aren't ideal for trust funds.

Don't Invest in Single Stocks

Stock performance depends directly on that company's financial performance. As such, purchasing one, two, or five stocks isn't a good idea. 

Rather, consider investing in shared, fully-diversified mutual funds, but only if retirement accounts are fully funded and plenty of low-risk assets are owned.

State Income Tax Matters

Everyone in America must be federal taxes. However, those in certain states, like Florida or Tennessee, aren't subject to state income taxes. 

These rates can be as high as California's 13-plus percent. As such, move to states without income taxes as soon as possible.

Money is an integral part of life. Unfortunately, few people don't know how to properly manage their finances. 

Don't get into trust funds unless you're loaded, aim to diversify stock investments - that's if you're set on low-risk investments - and make sure to create and closely adhere to budgets and plans.

Pesky Pest: 3 Reasons Your Pest Problem Isn't Over Yet

Just because you do everything possible to keep your home clean doesn't necessary mean your pest problems are over. Spiders, mice, ants, and similar unwelcome guests can be fairly determined when it comes to finding a nice, comfy spot to call home. 

While it's easy to get rid of some pests, others are more pesky and persistent. This doesn't mean you can't reduce intrusions from annoying invaders. Let's start with three reasons why some pest problems are an ongoing challenge.

1. Pests Love to Hitch Rides

Some of the reasons why pesky pests keep coming back aren't so obvious. For instance, some smaller pests find their way in by hitching a ride on clothing, shopping bags, or packages you may have delivered. 

You could even bring back a few visitors from vacations or weekend camping trips and not realize it until you start getting the feeling you're not alone when nobody else is home at the moment. 

Bedbugs, in particular, are pesky pests that often latch on to travelers and their belongings.

2. Pests Don't Like Unpleasant Weather Either

Another reason why pests keep coming back is because of the weather. It's actually abnormalities in weather patterns that often have pests seeking shelter in homes. 

For instance, many areas of California that were hit with long stretches of drought conditions saw noticeable increases in home pest problems. 

Bugs and rodents are survivors, so they'll go where they think there's shelter and food. The same thing happens in areas where big storms occur.

3. You're Creating Attractive Hiding Places for Them

The plastic you put down to keep weeds from overcrowding your garden is also a perfect spot for pill bugs, termites, and ants. 

They're not only sheltered from the elements, but they have a nice moist, dark place to call home and they can easily crawl down in the dirt and even live off of what you're growing -- especially if you have a vegetable garden. 

Pests also like forgotten nooks that don't get a lot of attention when you clean and places where you keep boxes and papers that don't get moved around a lot.

What You Can Do About It

Over-the-counter pest solutions tend to be more effective when pest problems are relegated to a single part of your home like the kitchen, basement, or attic. 

If you realize the problem is more widespread than you thought, avoid the potential risk of overdoing it with sprays and poisoned traps, especially if you have children and pets, consider calling on a company like Chem-Wise Ecological Pest Management that specializes in pest control for assistance. 

Reputable pest control companies have a better idea of how to safely address pesky pest problems in a way that's more strategic.

Several states have cities that rank high and low for reported issues with bugs within the same geographic region, so there's no clear rhyme or reason when it comes to identifying places likely to see pest problems, although some types of insects and rodents are more prevalent in certain parts of the country than others. 

Even so, most pests are fairly random. This is why you may have issues with creepy crawly things and some of your neighbors don't. Be as observant as possible to spot possible issues new "house guests" get settled in, and be as proactive as possible about minimizing access to food sources and hiding spots.