Retired folk, or people who do not have a regular source of income, always look at investments that offer them regular income. Among the most popular are the ones that offer monthly, quarterly, half yearly interest rates. We look at some of the highest paying fixed deposits that offer superb interest rates on monthly, quarterly, half yearly tenures. We wish to state that bond yields are rising, so do not lock amounts in very long ternures, as you may lose money of interest rates rise.
TN Power Finance
Tamil Nadu Power Finance offers an interest rate that is the best in its category. The interest rate on the monthly scheme is 8.50 per cent across tenures, while for the quarterly it is 8.56 per cent and for the annual interest rate payment it is 8.84 per cent.
The company is a government of Tamil Nadu owned entity.
Senior citizens are entitled to an extra 0.50 per cent on deposits approximately. An individual aged 58 years and above enrolling in the regular interest payment scheme (RIPS) of the company is deemed as a senior citizen. A minimum of Rs. 1 lakh has to deployed in the scheme and in multiples of Rs 1,000 thereafter.
This is one of the best FD scheme with quarterly and monthly payment. In fact, 9 per cent for senior citizens on a monthly basis is a great deal.
Bajaj Finserv offers an interest rate of 7.35 per cent to 7.58 per cent on quarterly deposits, depending on the tenure of the deposit.
The half yearly interest rate ranges from 7.46 per cent to 7.70 per cent, while in the case of annual interest it is 7.85 per cent. Special rate of additional 0.25% is provided to senior citizens aged 60 years and above, making their return @ 8.30%. For the same, age certificate needs to be produced. This is a AAA rated deposit and hence very safe.
We suggest that you do not lock-in large amounts into longer tenures, as there is a possibility that interest rates may rise over a period of time.
DHFL Fixed Deposits
These are again AAA rated deposits, which probably are among the best in terms of interest rates, if not the best.
The monthly interest rate on the Aashray deposit of DHFL with a minimum deposit of Rs. 2000 ranges between 7.40-7.65% for different tenures.
The quarterly interest rate varies from 7.45 to 7.7 per cent, while the half yearly it ranges from 7.55 per cent to 7.8 per cent, depending on the tenure. For yearly, you get an interest rate of up to 8.00 per cent. Under the scheme, a maximum amount of less than Rs. 50 lakh can be deployed. Select investors like Senior citizens, armed forces personnel and home loan borrowers get a little extra.
Tax Deducted at source is applicable for the FDs, whose interest exceeds Rs 5,000 in a month.
Mumbai-based NBFC offers an FD with non-cumulative interest payout option. Interest rate of 7.35 to 7.40 per cent on the half yearly tenure. The quarterly interest rate comes within a range of 7.30 to 7.35 per cent. In the half-yearly and quarterly deposit scheme, a minimum of Rs. 25,000 and Rs. 50,000 have to be invested respectively.
Senior citizens and employees of the company together with their relatives will get an additional interest of 0.25% and 0.35% respectively. The deposits are AAA rated and very secure.
PNB Housing Finance
Under the monthly income scheme the interest rate ranges from 7.0 per cent to 7.15 per cent. Under the quarterly scheme the interest rate ranges from 7.05 per cent to 7.20 per cent, while the interest rate on the annual scheme is 7.4 per cent. CARE AAA rating signifies a higher degree of safety. NO TDS shall be deducted for interest income upto Rs. 5000 in a financial year. PNB Housing Finance is a subsidiary of the majority government owned Punjab National Bank and hence the deposits can be considered as safe.
The interest rate from this housing finance company is not the best around.
Shriram Transport Finance Unnati
These deposits are from the Shriram Transport group. For a minimum deposit of Rs. 10000 and in multiples of 1000 thereof, the interest rate for monthly payout ranges from 7.49 per cent to 7.95 per cent, while in the case of quarterly interest it ranges from 7.54per cent to 8.00 per cent, depending on the tenure. For the half yearly it ranges from 7.61 per cent to 808 per cent.
In case of annual payout, a maximum of 8.25% can be realized.
Post Office Monthly Income Scheme
Although the Post Office Monthly Income Scheme is very secure, it offers an interest rate of 7.50 per cent, that is paid every month. This may not be among the best.
It is important to remember that there is a cap of Rs 4.5 lakhs in single account and Rs 9 lakhs in joint account. And the scheme can be opened with a minimum of Rs. 1500. It can be withdrawn early but there are some heavy charges that are applicable.
HDFC Fixed Deposits are highly secure deposits, as with most of the deposits mentioned above. HDFC Deposits offer you an interest rate of 7.25 to 7.3 per cent on the monthly income depending on the tenure. The quarterly deposits comes with an interest rate of 7.3 to 7.35 per cent, while under the half yearly the interest rate ranges from 7.35 to 7.4 per cent. In case of an annual income plan, an investor can get a maximum of 7.55% as interest payout and that is for the 22 month deposits.
KTDFC Fixed Deposits
Kerala Transport Development Finance Corporation, a NBFC registered with the RBI, offers an annual interest rate of 8.25 per cent.
The company offers two schemes mainly, PIPS or Periodic Interest Payment Scheme and MMS or Money Multiplier Scheme .The company's deposits are relatively safe and are backed by the government of Kerala. The company recently dropped interest rates on July 1, 2017.
What are fixed deposits?
If any one wants to generate wealth and wants it to grow but does not want it to be in a risky way, for that purpose, the fixed deposit is the best. This is because of money in a bank for a particular period of 7 days to 10 years can generate additional income.
If the money is in the bank, it starts earning interest that is based on the duration of the deposit and can go to rates as high as 9 percent per annum, depending on the bank and the scheme.
Once the deposits period is over, the bank returns the money along with all the interest it has earned. The primary purpose of fixed deposit account is to allow the individuals to make a higher rate of returns on their money. The amount can be deposited only once in fixed deposit and depositor is given a fixed deposit receipt, which he has to produce at the time of maturity. The deposit can be renewed for a further period.