Fixed deposit interest rates have fallen off the roof and it is hard to get more than 5.5% interest from the top 3 private sector banks in the country or the top 3 big government owned banks in the country. Here is a fixed deposits that offer you up to 8.77% interest.
Tamil Nadu Transport Development Finance Corporation Fixed Deposits Interest Rates (Non senior citizens, regular interest income)
Tamil Nadu Transport Development Finance Corporation Fixed Deposits Interest Rates (senior citizens, regular interest income)
The interest rates are as on December 3, 2021. This is a government of Tamil Nadu backed enterprise and hence the deposits are very safe. The deposits are also available under the cumulative scheme, where the interest rate is more or less the same, but, the yields could go higher because of compounding.
Other details of the Tamil Nadu Transport Development Finance Corporation Fixed Deposits
The deposits cannot be opened online and one may have to visit the office or courier the fixed deposit forms, duly filled-in with the KYC requirements. Under the money multiplier scheme the deposits are compounded quarterly. The company is a good profit making enterprise that has been generating profits since 1975.
These deposits are relatively safe, but, the only problem right now is that there is no online facility. Therefore, it would be beneficial for those staying in Tamil Nadu and who can visit the office and open the fixed deposits. For other set of investors the task maybe a little more painful.
However, with the interest rates going as high as 8.77% and if you have a big amount, even travelling to Tamil Nadu to open the deposits maybe worth.
Invest in these deposits for the long-term
It is unlikely that interest rates in the economy would rally higher any time soon. It is therefore imperative to block money at higher interest rates for a longer term tenure. For example, senior citizens can get as high as 8.77% on the 5-year deposit. It is therefore advisable to go for the 5 year tenure period. We believe that in an era where even the Senior Citizens Savings Scheme is able to offer only 7.4% interest for senior citizens this is not a bad option at all. Apart from this the Tamil Nadu Transport Development Finance Corporation is a wholly owned company of the government of Tamil Nadu.
There is another company called the Tamil Nadu Power and Infra Finance company, where the fixed deposit interest rate offered is as high as 8.5%. This company interestingly has online facilities and investors can open their fixed deposits online. Those who are long term investors should apply for these deposits. The Reserve Bank of India is unlikely to hike interest rates anytime soon and the current rates being offered of upto 8.5 to 8.77 per cent is not bad at all. It's hard to get returns on fixed deposits these days.