Complaints of low interest rates on fixed deposits have become a common denominator among investors. Even State Bank of India (SBI), India’s largest public sector bank, offers interest rates of 5.5 per cent on fixed deposits. But did you know that there is a financial institution in India that pays 8% interest on fixed deposits?
That’s right. Tamil Nadu Power Finance and Infrastructure Development Corporation offers interest rates of 8% for ordinary citizens and 8.5% for senior citizens. As the name suggests, this financial institution is run by the Government of Tamil Nadu. If you compare the interest rates of other state-owned banks, you can see that Tamil Nadu Power Finance is changing.
Many people are curious to know the interest rates offered by Tamil Nadu Power Finance for fixed deposits. The minimum term of the fixed investment plan offered by this institution is 12 months. If the investment is made for this period, ordinary citizens will get 7 per cent interest rate and senior citizens 7.25 per cent. Tamil Nadu Power Finance offers fixed deposits of 24 months, 36 months, 48 months and 60 months.
If the deposit is for 24 months, the interest rate for ordinary citizens will be 7.25 per cent; The interest rate for senior citizens will be 7.50 per cent. The interest rate for ordinary citizens and senior citizens is 7.75 per cent and 8.25 per cent on fixed deposits for 36 months. The company offers ordinary citizens 7.75 per cent interest on fixed deposits for 48 months. During this period, senior citizens will get 8.25 per cent interest.
Tamil Nadu Power Finance offers 8% interest on fixed deposits for 60 months; They will also pay 8.50 per cent interest rate for senior citizens.
It is worth mentioning here that in the current scenario no other bank in India is offering 8.50 per cent interest rate to senior citizens. Tamil Nadu Power Finance offers the facility of opening a fixed deposit through an online website. In any case, those who want to make a low risk investment would do well to look at Tamil Nadu Power Finance, which offers an interest rate of 8%.
At the same time, it is advisable to have a term of less than 3 years when making a fixed investment. This is because interest rates are likely to rise in the meantime. For example, if you make a fixed deposit for 5 years, you will get the interest rate at the time of starting the fixed deposit. In the meanwhile, the investor does not get the benefit of increasing the interest rate.
So it is wise to start with a fixed investment of 2 to 3 years. Investors can also think of fixed investment plans for one year. At present, interest rates on fixed deposits remain low. Credit demand will increase as the economy slowly recovers. This will force banks to increase deposit rates. This is the main reason why you should not start a fixed investment for a long time.
