8.77% Interest By This Government Company Makes These Fixed Deposits Attractive

Tamil Nadu, government owned, Tamil Nadu Transport Development Finance Corporation (TNTDFC) is offering very attractive interest rates on fixed deposits let's take a look.

Non senior citizens FD rates from TNTDFC

If you opt for the annual interest rates payout the interest paid is 8.24% for 60-months. If you opt for quarterly interest payout, the amount of interest offered is 8% for 60 months and 7.75% for 36-months and 48-months. It is a better proposition to go for deposits of 48 and 60 months, with annual payout as the interest rates are good.

For non senior citizens, if you are investing for 60-months under the money multiplier scheme, you receive an interest rate of as high as 8%. On the other hand for a period of 36 and 48 months, investors receive an interest rate of 7.75% and for 12-months it is just 7% and 24 months 7.25%.

Deposit interest rates for senior citizens from Tamil Nadu Transport Development Finance Corporation Fixed Deposits

Under the periodic interest payment, if senior citizens opt for the annual interest payout, under the periodic interest payment, you receive an interest rate of as high as 8.77%. For 36-months and 48-months the annual interest payout fetches an interest rate of 8.51%.

For senior citizens, if you opt for the Money Multiplier Scheme, they are offered at an interest rate of 8.5% for 60 months, while 48 months fetches a slightly lower interest rate of 8.25%. The annual interest rates payout that you receive is probably the best from a government institution.

The best options under the Tamil Nadu Transport Development Finance Corporation Fixed Deposits

Clearly, the best investing options for investors would be the annual payout with 60-months tenure, where non senior citizens receive an interest rate of 8.24% over 60-months and senior citizens receive 8.77% for 60-months. Apart from this, it is a good option to always invest for longer term tenures as interest rates could drop in the coming quarters. There is also online facility for investing in these deposits and investors would do well to apply through the online process. Over the next 1-2 years, interest rates in the economy are expected to fall. So, make the best use of high interest rates.

Things to note about fixed deposits

In case, you are likely to receive interest rates of more than 5000 a year, you would be liable to TDS. In such cases you can submit form 15g and form 15h, as the case maybe in case you are not liable to pay income tax in India. Apart from this, it may not be advisable to go for the 1 or 2 year deposits as interest rates could fall and you would end-up getting lower rates, when you want to redeem the same.

Money multiplier or periodic interest payment, which to opt for?

It really depends on your own requirements. We would recommend investors who require regular payments to look for the annual interest or the quarterly payouts, which offer better interest rates. In any case for the money multiplier, interest rates would begin to get compounded, which is not bad at all.