The Fixed Deposits from Kerala Transport Development Finance Corporation (KTDFC) score on every count. The Fixed Deposits are backed by the government of Kerala and at the moment there is no government institution in the country that offers such a high interest rate. In fact, the interest rate on the deposit is unmatched by any private or government sector bank.
Beats interest rates offered by banks very easily
The Interest rate on a KTDFC deposit can go as high as 10.50 per cent, if the deposit is above Rs 25 lakh. If the deposit is under Rs 25 lakh, the interest rate offered is 10.25 per cent for a one, two and three year deposit, while it falls to 10.00 per cent for a 4 and 5 year deposit. No bank (do not include cooperative banks) in the country offers these interest rates.
High in safety
Since company fixed deposits are unsecure deposit one has to be careful when investing. However, there is no cause for concern with the KTDFC Deposit, since the deposits are backed by the government of Kerala
Interest rate for senior citizens can go as high as 10.75%
There is an extra interest rate of 0.25 per cent for senior citizens, leaving them to earn an interest rate as high as 10.75 per cent.
Lock-in at high interest rates now
Interest rates may fall in the near future and by investing for a period of say three years at 10.50 per cent (deposit above Rs 25 lakhs) and at 10.25 per cent (for deposits below Rs 25 lakhs), you have hedged against falling interest rates.