1) Company Deposits

 Company deposit is the deposit placed by investors with companies for a fixed term carrying a prescribed rate of interest. Generally, the interest rates on company deposits are higher than those on bank fixed deposits. Also, company deposits have to be necessarily credit-rated and no income tax is deducted at source if the interest income is up to Rs.5,000 in a financial year.

 2) Bank Deposits

A deposit account is a current accountsavings account, or other type of bank account, at a banking institution that allows money to be deposited and withdrawn by the account holder, as per the terms and conditions of the account. The “deposit” (one of the simplest form of investment) itself is a liability owed by the bank to the depositor (the person or entity that made the deposit).  While a deposit in a current account does not earn any interest, deposits in other kinds of bank accounts earn interest. Loans can be raised against bank deposits.

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