KTDFC FDs

The Kerala Transport Development Finance Corporation (KTDFC) is a government of Kerala owned enterprise and the deposits are guaranteed by the government of Kerala.

The 1, 2 and 3 year deposit offers an interest rate of 8.25 per cent for non senior citizens and 8.50 per cent for senior citizens. These deposits are not rated, but, since they are backed by the Government of Kerala, they are the best in their category. Interestingly, under the cumulative deposit the interest is compounded monthly, unlike banks, which compound the interest every quarter.

So, your yields go as high as 9.32 per cent on a three year deposit and as high as 9.80 per cent on a 5-year deposit.

Ujjivan Small Finance Bank

Ujjivan Small Finance Bank is a small finance bank, which was granted license by the RBI last year as a small finance bank.

The bank offers an interest rate of 8 per cent on its FDs with a tenure of 1 and 2 years. Deposits below that are not attractive as the interest rate is low. Ujjivan Small Finance Bank is among the reputed small finance banks and is offering a decent interest rate, when compared to the private or the government owned banks.

If you are looking for a longer term deposit at this bank, it would not be advised as the deposit interest rates are low. One of the better fixed income investments in India for the shorter term.

National Savings Certificate

If you are looking at a slightly longer term tenure of 5 years, this has to be your best choice. The National Savings Certificate is backed by the Government of India and offers an interest rate of 7.80 per cent.

You cannot break the NSC before the 5 years, though you can avail a loan for the same. You also get tax benefit under Sec 80C of the income tax act, though the interest is fully taxable in the hands of the investor.

These certificates are issued by the Post Office and are freely transferable from one post office to the other. Again, one of the best fixed income investments in India for the long term.

Bajaj Finance FDs

Bajaj Finance is a private sector company and offers an interest rate of 7.85 per cent on its FDs for new customers.

If you are a senior citizen the interest rates move higher to 8.10 per cent, while the interest rate for loan customers is 7.95 per cent.

These deposits are much better when compared to banks, which offer you an interest rate of 6.50 per cent. Bajaj Finance's FD has been awarded with ICRA's MAAA (Stable) Rating and CRISIL's FAAA/Stable Rating.

Dewan Housing Finance FDs

A 48 to 120 months fixed deposit at Dewan Housing Finance fetches you an interest rate of 8 per cent.

However, we do not recommend that investors go for long term tenure FDs, as interest rates could gradually go higher.

A 36-months deposit at Dewan Housing Finance fetches you an interest rate of 7.85 per cent and 24 months 7.80 per cent. For select privilege customers the interest can go as high as 8.05 per cent. 

These customers include armed forces personnel, senior citizens, home loan borrowers etc.

Taxation

It is also important to understand the tax implications on these investments. All of the investments mentioned above will have a tax liability except the Public Provident Fund. Infact, the PPF also offers you tax benefits under Sec 80C, apart from the fact that the interest income is completely exempt from Income Tax in India. 

It is one of the safest options in India and investors can go for the same. 

Disclaimer

Though we have recommended some government schemes and also highly rated deposits, private sector deposits are not secure deposits. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author of this article do not accept culpability for losses and/or damages arising based on information in this article.