Interest rates have fallen very sharply in the last few months and the government has also slashed interest rates on small saving schemes. Some popular saving schemes like the Public Provident Fund offer an interest rate of just 6.9 per cent.
Interest rate on bank fixed deposits are even worse. State Bank of India for example offers an interest rate of just 6 per cent on its fixed deposits. At such times, its only right to look at fixed deposits that are safe and offer a very good interest rates and yield.
The Kerala Transport and Development Finance Corporation (KTDFC) is offering an interest rate of as much as 8 per cent, with yields that are very near the 10 per cent mark.
Interest rates and yields of KTDFC deposits
OTHER THAN SENIOR CITIZENS
|Period||Rate||Approx.Maturity value for Rs 10,000 under MMS||Approximate cumulative Annual Yield|
|1 year||8.00 %||10,830||8.30 %|
|2 years||8.00 %||11,729||8.64 %;|
|3 years||8.00 %||12,702||9.01 %|
|4 years||7.75 %||13,621;||9.05 %|
|5 years||7.75 %||14,715||9.43 %|
FOR SENIOR CITIZENS ONLY
|Period||Rate(p/a)||Approx.Maturity value for Rs 10,000 under MMS||Approximate cumulative Annual Yield*|
|1 year||8.25 %||10,857||8.57 %|
|2 years||8.25 %||11,787||8.94 %|
|3 years||8.25 %||12,797||9.32 %|
|4 years||8.00 %||13,757||9.39 %|
|5 years||8.00 %||14,898||9.80 %|
Fixed deposits guaranteed by the government of Kerala
The fixed deposits are very safe, as they are guaranteed by the government of Kerala upto a sum of Rs 4,500 crores. Currently, there are no companies or commercial banks in the country that offer an interest rate of as much as 8%. Some small finance banks do offer a better interest rate, but, than one is not so sure.
About the author: Sunil Fernandes is the Managing Editor of GoodReturns.in with 25-years of experience. Prior to this, he has worked with frontline newspapers and magazines including Dalal Street Investment Journal, Deccan Herald, Hindustan Times, Oman Economic Review and Gulf Times.