Kerala Transport Development Finance Corporation Ltd (KTDFC) is a government of Kerala owned nonbanking company, which is registered under RBI. KTDFC accepts deposits from the public and these are guaranteed by Kerala government, which makes KTDFC deposits a secured and safer choice.
KTDFC fixed deposit schemes are available in two variants, Periodic Interest Payment Scheme (PIPS) and the Money Multiplier Scheme (MMS).
Under PIPS option, interest will be paid every month or every quarter during the fixed deposit scheme period. In MMS, interest is calculated every month and paid at maturity of the fixed deposit scheme.
The FD schemes are available in 1,2,3,4 and 5-year tenures.
1) Interest rates
For 1 year the Interest rate on a KTDFC deposit will be 8.50 per cent for one year, while it falls to 8.25 percent for four and five-year deposits. At this time no banks excluding co-operative banks in the country offer these interest rates.
2) Very safe
The Fixed Deposits under KTDFC are backed by the government of Kerala which ensures safety to your money invested. There is no government institution in the country that offers such a high-interest rate along with safety. Best Safe Investments In India For 2017
3) Beats Bank deposit interest rates
Banks at the moment give you an interest rate of 7 to 7.25 per cent per annum. This means at 8.5 per cent, KTDFC deposits is the best in the business. In fact, for senior citizens, the yield goes as high as 10.77 per cent on a 5-year deposit. In the present environment, it is very difficult to get such high-interest rates. 7 Best Short Term Investments With High Returns And Yields In India
4) Locking in money at high-interest rates
The beauty of the KTDFC fixed deposits is that you get to lock-in money at very high-interest rates. This means that if interest rates fall, you should not be bothered, given that you have blocked money at 8.50 per cent. In fact, there are high chances of interest rates falling further.
5) Taxation on the FDs
Company FDs attract a TDS of 10 per cent if the interest income crosses Rs 5,000 unless you submit form 15g and form 15h. For banks, the TDS is triggered if your deposits interest rate crosses Rs 10,000 per annum.
6) Extra rate for senior citizens
KTDFC investments are suited for senior citizens very much. There is an extra interest rate of 0.25 per cent for senior citizens, leaving them to earn an interest rate as high as 8.75 per cent. 5 great deposit ideas for retired individuals