Backed by the Government of Kerala, the Kerala Transport Development Finance Corporation Ltd. offers customers with two different KTDFC fixed deposit plans. It is a Non-Banking Financial Company authorised under RBI. As the FD scheme is guaranteed by the Government of Kerala, this ensures that the deposit amount, as well as returns, are 100% secure. With strong, falling EMI rates, hassle-free methods and premature closure options, KTDFC provide different loan products to meet the needs of each customer. On the other side, favourable KTDFC FD rates are provided to senior citizens, making this FD scheme even more appealing to investors.
Types of FD schemes
Two kinds of FD schemes for customers to select from are provided by Kerala Transport Development Finance Corporation, and they are:
Period Interest Payment Scheme (PIPS): The deposit amount shall be paid at the completion of the period of deposit, along with interest accruing periodically, according to the exemption of applicable taxes+GST if any.
Money Multiplier Scheme (MMS): The amount of the deposit after interest payment at the periods chosen is liable to the tax benefit of applicable taxes+GST if any, paid after the completion of the maturity period.
- Higher interest rates up to 8% for the general public and 8.25% for senior citizens.
- Additional 0.25% rate of interest for elderly people
- An account can be opened individually and jointly by Indian residents only
- Since it is backed by the Government of Kerala, this FD scheme is a stable bet.
- With the maturity amount, one can reimburse the loan at the end of the term.
- Interest rates provided by KTDFC vary from 8.00 per cent to 8.25 per cent over FD tenures of 1 to 5 years for senior citizens.
- NRIs are not allowed to invest in this FD scheme
- TDS will not be deducted up to Rs.5,000 in interest in a fiscal year in lieu of which 15G/15H forms will have to be submitted.
- Fixed deposits with KTDFC comes with a tenure of 1 to 5 years
- One can make a minimum deposit of Rs 10,000 and in the multiples of Rs 1,000 subsequently.
Premature withdrawal facility
The corporation enables its customers with premature withdrawal alternative. To better explain the terms and conditions of KTDFC's premature withdrawal, the below-given factors must be considered:
- After 3 months of opening the account, a premature withdrawal facility is allowed.
- The request of withdrawal for deposits over Rs. 1 lakh shall be submitted 30 days earlier.
- For investments below Rs. 1 lakh, a 15-day notice shall be applicable by the company.
Interest shall be paid as follows in the circumstance of early withdrawal after 3 months:
- No interest shall be paid if withdrawal is made after 6 months but before 6 months from the date of deposit.
- Interest will be provided at a 2% lower rate than the interest rate accepted, in case of withdrawal is made after 6 months but before the date of maturity.
- In the event of the depositor's demise, the company shall pay to the specified nominee the whole value of the investment, irrespective of the lock-in period; the nominee can claim to continue with the FD account by ensuring the company in written format.
Loan against fixed deposit
KTDFC gives its customers the possibility of making use of the loan against their fixed deposits with the corporation. For more clarity on the matter, consider the points listed below:
- Loans will only be approved to customers on loans up to 75 percent of the amount of the deposit.
- A loan can be applied after a lock-in period of 3 months from the date of account opening.
- Interest will be charged at 2% above the interest payable
- Under the Period Interest Payment Scheme (PIPS) interest on the loan shall be modified against the interest due.
- Through paying off the loan in a lump sum with interest until maturity or having it modified against the maturity amount or premature withdrawal, customers can close the loan.
KTDFC Interest Rates
|Tenure||ROI p.a. for general public||ROI p.a. for senior citizens|