It is a known fact that fixed deposits are one of the safest ways of investing a chunk of your capital. This is because FDs are immune to the fluctuating market variables, making them an investment option with a very low risk. But of late, the interest rates on fixed deposits have been slipping. However, there are few options still surviving to offer you the best interest rate possible.
While the general interest rate oscillates somewhere between 2 and 6 per cent, two subsidiaries of the Government of Tamil Nadu – Tamil Nadu Power Finance and Infrastructure and Tamil Nadu Transport Development Finance Corporation – have come up with exciting interest rates on their FDs. Both are offering an interest rate of 8.5 per cent for senior citizens and 8 per cent for regular depositors.
Since the enterprises are owned by the government, any kind of risk, including liquidity and default, is highly unlikely. The state-government owned corporations will ensure that the deposits mature in a very safe environment
Tamil Nadu Power Finance and Infrastructure
Registered as a non-banking finance company with the Reserve Bank of India, Tamil Nadu Power Finance is offering a cumulative fixed deposit scheme with a mature period ranging from 12 to 60 months. It also offers a periodic payment in monthly and quarterly intervals.
For a maturing period of one year, the institution is offering an interest rate of 7 per cent for the customers. The interest rate sees a rise of 0.25 per cent on adding another year to the maturing period. For 3 years, the interest rate offered is 7.75 per cent. The rate becomes most lucrative for a period of 5 years, where the depositors will get 8 per cent interest rates on the FD.
For senior citizens, the interest rate starts at 7.25 per cent for a period of 12 months, with an increase of 0.25 per cent with each year being added to the deposit period. The most attractive interest of 8.5 per cent is being offered to the senior citizens for a maturity period of five years.
Tamil Nadu Transport Development Finance Corporation
The Tamil Nadu Transport Development Finance Corporation is also offering very attractive rates on their fixed deposits. For a minimum period of two years, the enterprise is offering an interest rate of 7.25 per cent, which increases by 0.50 per cent if the maturity period is prolonged to three years. For five years, the interest rate offered is 8 per cent. For senior citizens, the interest rates start from 7.5 per cent and increase by 0.25 per cent with subsequent maturity periods.