3 State-Govt. Backed FD Schemes That Offer 8.51% Interest To Senior Citizens

Fixed Deposit investors can find competitive interest rates from a variety of private, public, and government-backed entities. In the recent past, FDs have become competitive due to rising FD rates. Among various banks and Non-Banking Financial Companies (NBFCs), there are few NBFCs that are backed by the Central or state government that offer high-interest rates on FD to customers.

Among several NBFCs that offers high interest rates on FDs, we have picked 3 NBFCs backed by Tamil Nadu & Kerala state governments. These 3 NBFCs are Tamil Nadu Transport Development Finance Corporation Ltd. (TNTDFC), Tamil Nadu Power Finance & Infrastructure Development Corporation Ltd. (TNPFIDC), and Kerala Transport Development Finance Corporation Ltd. (KTDFC). Since all three NBFCS are backed by State Governments, default chances are less.

Tamil Nadu Transport Development Finance Corporation (TNTDFC)

TNTDFC is a Tamil Nadu government-undertaking NBFC that offers FD to its customers. The FD interest rates offered by the TNTDFC are between 7.50% to 8.24% for Non-Senior citizens with the maturity period of 12 Months to 60 Months. It offers two types of deposit schemes, which are the Periodic Interest Payment Scheme (PIPS) and the Monthly Multiplier Scheme (MMS). Senior citizens above age 58 will get additional interest rates over the non-senior citizens' FD rates. To subscribe to the FD, a minimum of Rs 50,000 is required and thereafter in multiples of Rs 1000.

Interest Rates - Periodic Interest Payment Scheme (PIPS)

Period	Monthly		Quarterly		Yearly
Months	Non-Senior Citizens Rates (%)	Senior Citizen Interest (%)	Non-Senior Citizens Rates (%)	Senior Citizen Interest (%)	Non-Senior Citizens Rates (%)	Senior Citizen Interest (%)
24	--	--	7.60%	7.85%	--	--
36	7.75%	8.00%	7.75%	8.00%	7.98%	8.24%
48	8.00%	8.25%	8.00%	8.25%	8.24%	8.51%
60	8.00%	8.25%	8.00%	8.25%	8.24%	8.51%

Interest Rates- Monthly Multiplier Scheme (MMS)

Months	Non-Senior Citizens Rates (%)	Senior Citizen Interest (%)
12	7.50%	7.75%
24	7.60%	7.85%
36	7.75%	8.00%
48	8.00%	8.25%
60	8.00%	8.25%

Source - online.tdfc.in

Tamil Nadu Power Finance & Infrastructure Development Corporation (TNPFIDC)

TNPFIDC is an RBI registered NBFC, wholly owned by the Tamil Nadu Government. TNPFIDC offers FD with 12 months to 60 months tenure under Cumulative & Non-Cumulative deposit options.

Under the Cumulative option, it offers a minimum 6.75% to a maximum 7.75% to non-senior citizens. While under the non-cumulative option, it offers deposits with monthly interest payments, Quarterly interest payments and yearly interest payment options.

Senior citizens to get additional interest rates under cumulative & Non-Cumulative deposits. To book FD in TNPFIDC, you need a minimum of Rs 2,00,000 and in multiples of Rs 1,000.

Cumulative Deposit Scheme Interest Rates

Period (Month)	Non-Senior Citizens Rates (%)	Senior Citizen Interest (%)
12	6.75	7
24	7	7.25
36	7.5	8
48	7.5	8
60	7.75	8.25

Non-Cumulative Deposit Scheme Interest Rates

Period	Monthly		Quarterly		Yearly
Month	Non-Senior Citizens Rates (%)	Senior Citizen Interest (%)	Non-Senior Citizens Rates (%)	Senior Citizen Interest (%)	Non-Senior Citizens Rates (%)	Senior Citizen Interest (%)
24	--	--	7	7.25	--	--
36	7.5	8	7.5	8	7.71	8.24
48	7.5	8	7.5	8	7.71	8.24
60	7.75	8.25	7.75	8.25	7.98	8.51

Source - tnpowerfinance.com

Kerala Transport Development Finance Corporation (KTDFC)

Backed by the Kerala government, KTDFC offers FD for non-Senior Citizens & Senior citizens for a deposit period of 1 Year to 5 years. It provides interest rates between 6.75% p.a. to 7% p.a. to non-senior citizens and 7% to 7.25% to senior citizens. According to the KTDFC's official website, "the fixed deposits guaranteed by the government of Kerala. Repayment of deposits up to 4,500 crores with interest."

Interest rate on Fixed Deposits of KTDFC with effect from 15th July 2022

Period	Non-Senior Citizens Rates (p/a)	Senior Citizens Rate (p/a)
1 year	7.00%	7.25%
2 years	7.00%	7.25%
3 years	7.00%	7.25%
4 years	6.75%	7.00%
5 years	6.75%	7.00%

Source - ktdfc.kerala.gov.in