This NBFC Is Offering Inflation Beating FD Rates, Up To 8.5% - Read To Know More

Many individuals pick fixed deposits as one of the safest investment options during times of uncertainty, such as rising inflation, stock market volatility or any other financial problem. With interest rates rising, other than banks investors are also considering corporate fixed deposits to receive larger returns than bank savings. However, while investing you should also consider capital security.

In August 2022, the Reserve Bank of India (RBI) hiked the repo rate hike to 5.40 per cent, the 3rd consecutive repo rate hike in 2022. Following this several banks including Non-Banking Financial Companies (NBFCs) have increased fixed deposit rates along with other financial products such as home loans and education loans. If you are looking for a low-risk investment option, FD can be a good destination to park your money through banks, NBFCs, or the post offices.

The recent development in repo rate has made interest rate on FDs a major part of investment options available for debt investors. Tamil Nadu Power Finance and Infrastructure Development Corporation Limited is one such safe and secure NBFC to invest in fixed deposits.

Tamil Nadu Power Finance & Infrastructure Development Corporation

It is a wholly owned NBFC by the government of Tamil Nadu which makes it a secure destination to park your money. This government-owned organisation has distinguished itself by providing its investors with a highly favourable interest rate on FDs. The NBFC offers inflation-beating Interest to up to 8.50 percent to its customers, particularly Senior citizens.

As previously stated, investing in these FDs is risk-free because it is a Tamil Nadu Government-owned NBFC. This government-backed NBFC provides both cumulative and non-cumulative fixed deposit alternatives.
 

 Cumulative fixed deposit

Under the cumulative fixed deposit option on maturity the fixed deposits are available in terms of 12, 24, 36, 48, and 60 months, respectively. Depending on the deposit tenure chosen, an investor will get interest rates on their FDs ranging from 7 per cent to 8 percent, while deposits made by Senior Citizens are entitled to an additional 0.50% interest rate. Citizens aged 58 and up are eligible for 7.25 per cent to 8.50 per cent interest on fixed deposits with terms ranging from 12 months to 60 months.

Following are the FD Interest Rates:

Period	Regular Deposits	Senior Citizens Deposits
12 Months	7.00%	7.25%
24 Months	7.25%	7.50%
36 Months	7.75%	8.25%
48 Months	7.75%	8.25%
60 Months	8.00%	8.50%

Non-cumulative fixed deposit

This FD option allows investors to earn a substantial interest on their fixed deposits on a monthly, quarterly, or annual basis. Investors would be entitled to their investment back once the FDs matured.
 
These FDs are available with maturities of 24, 36, 48, or 60 months, respectively. On Regular deposits, the interest rates vary from 7.25 per cent to 8% depending on the duration chosen by investors. Similar to the Cumulative deposit scheme, under this scheme senior citizens are also entitled to receive an additional 0.50 per cent interest rate on deposits. For senior citizens, the interest rate ranges from 7.50% to 8.50% for various tenures. Seniors citizens aged 58 and up are eligible for this additional interest rate. 
 

Following are the FD Interest Rates:

Period	Regular Deposits	Senior Citizens Deposits
24 Months	7.25%	7.50%
36 Months	7.75%	8.25%
48 Months	7.75%	8.25%
60 Months	8.00%	8.50%

Source- www.tnpowerfinance.com