The state government of Tamil Nadu owned Tamil Nadu Power Finance and Infrastructure Development Corporation Ltd (TN Power Finance) is offering an interest rate of up to 8.77% on its fixed deposits.
Non cumulative, Senior Citizens interest rates as on Dec 2, 2021
|Monthly interest payout||7.50%||8.25%||8.50%|
|Quarterly interest payout||7.50%||8.25%||8.50%|
The cumulative interest rates being offered for non senior citizens is also more or less the same. Under the cumulative scheme you also have an opportunity to invest for 1-year period. For a 5-year period the interest rates go as high as 8.77%, which is the latest and updated as on December 2, 2021.
Cumulative fixed deposits senior citizens and non senior citizens as on Dec 2, 2021
|Non senior citizens||Senior citizens|
This is the best interest rates that you can probably get from any government owned institution in India. We suggest that investors invest in these deposits through a friendly app that the company has made available online.
How to invest in the fixed deposits of Tamil Nadu Power?
We visited the office of Tamil Nadu Power to invest in the deposits. There was a rush of people for the fixed deposits, given that it is now impossible to get 8.50% on fixed deposits and also that the deposits were safe as they are a state government owned company.
Interestingly, the company also has a well developed app, where you can download and apply for fixed deposits online. There is also a call centre to help you with any assistance that you might need.
Are the fixed deposits of Tamil Nadu Power and Infrastructure Finance safe?
With attractive interest rates that go as high as 8.77%, the deposits of TN Power Finance Corporation is not a bad bet. Bank interest rates are around that 5.5% mark which is not attractive at all. Inflation is hovering around those levels, so the real rate of returns have been dismal. Given that the deposits of Tamil Nadu Power Finance and Infrastructure is fully owned by the government of Tamil Nadu, they are also safe.
For senior citizens who have been hit hard by low interest rates, these deposits could be a good bet. For non senior citizens too the deposits offer the best interest rates when compared to banks. We also believe that interest rates on fixed deposits would not go higher anytime soon and hence these deposits offer an attractive option for investors.