This Government-Backed FD Scheme Is Offering Inflation Beating Interest Rates; Details Inside

In times of uncertainty, such as rising inflation and stock market volatility, many consumers choose fixed deposits as one of the safest investing options. Banks, Non-banking Financial Companies (NBFCs), and post offices all offer low-risk financial products to customers.

After the 3rd consecutive repo rate hike by the Reserve Bank of India (RBI) by 50 basis points, Fixed Deposits among conservative investors become a major investment instrument to talk about. Now, the FDs have become more attractive than they use to be a year back.

Since the past two repo rate hikes by the RBI many leading PSBs and private sector banks have hiked their FD rates along with other financial products. However, now after this hike, it is expected that in the coming days, many banks and NBFCs will hike their interest rates on Fixed Deposits.

Tamil Nadu Power Finance FDs Up To 8.50 Per Cent

Among many NBFCs, Tamil Nadu Power Finance and Infrastructure Development Corporation Limited is one that offers inflation-beating Interest rates of 8.50 per cent. This government-owned institution has stood out and offered a highly attractive interest rate on FDs to its investors. The inflation-beating FD rate of 8.50 per cent is offered to senior citizens.

The investment in these FDs is quite safe as it is a Tamil Nadu Government-owned NBFC. This government-backed NBFC offers two types of fixed deposit options cumulative and non-cumulative.

Cumulative fixed deposit

The cumulative fixed deposit option is the second product that NBFC is offering. Under this FD option, the investors will receive interest on maturity.

These fixed deposits have terms of 12, 24, 36, 48, and 60 Months, respectively. Depending on the duration an investor chooses, an investor will receive interest rates on their FDs ranging from 7 to 8 per cent, whereas deposits made by Senior citizens are eligible for an additional 0.5 per cent interest rate. Citizens who are 58 years or above are eligible to receive 7.25 per cent to 8.50 per cent on fixed deposits for a tenure of 12 Months to 60-Month.

Period (Month)	On Regular Deposits (%)	On Senior Citizens Deposits (%)
12	7	7.25
24	7.25	7.5
36	7.75	8.25
48	7.75	8.25
60	8	8.5

Non-cumulative fixed deposit

Under the FD option, investors can get high interest on these fixed deposits on a monthly, quarterly, or annual basis. They would be entitled to receive their investment back once the FDs reached maturity.

These FDs come with terms of 24, 36, and 48 or 60 Months of period maturity period. Regular residents can still take advantage of the existing interest rates, which range from 7.25 per cent to 8 per cent depending on the duration that investors opt for.

The interest rate will range between 7.50 per cent to 8.50 per cent for various tenures if the investor is a senior citizen. Seniors who are 58 years of age or older may qualify for this additional interest rate.

Period (Month)	On Regular Deposits (%)	On Senior Citizens Deposits (%)
24	7.25	7.5
36	7.75	8.25
48	7.75	8.25
60	8	8.5