13.73% Tamil Nadu Power Finance Fixed Deposit Scheme-How safe is this?

Tamil Nadu Power Finance FD Scheme13.73% Tamil Nadu Power Finance Fixed Deposit Scheme-How safe is this?

Tamil Nadu Power Finance and Infrastructure Limited offer Fixed Deposit scheme for 1 year to 5 years tenure. This is wholly owned by Govt. of Tamil Nadu. This offers 13.73% yield for 5 years tenure FD Scheme. How good is TN Power Finance FD Scheme? What are the features of TN Power Finance and Infrastructure FD Scheme? Are there any risks involved in it? This post is based on request from Arunkumar on suggest a topic.

About Tamil Nadu Power Finance and Infrastructure Limited

TN Power Finance is wholly owned by Govt. of Tamil Nadu. This is registered with RBI as Non Banking Finance company (NBFC) and into Hire Purchase Financing business. It mobilizes funds through attractive deposit schemes. Total deposits as of Feb-2014 are ₹ 9,612 Crores with total of ₹ 59.63 Lakh depositors.

Also Read: DHFL Fixed Deposit scheme offers 15.07% yield

Features of TN Power Finance FD Scheme

  • TN Power Finance FD scheme is available in Regular Interest Payment Scheme (RIPS) and cumulative Interest payment scheme (CIPS) options.
  • For regular interest payment scheme, Interest is compounded and paid, monthly, quarterly and Annually.
  • For cumulative scheme, interest is payable at maturity.
  • Minimum FD amount is ₹ 10,000 and any amount in multiples of ₹ 1,000 beyond this.
  • Deposits available for 1, 2, 3, 4 and 5 year tenure.
  • ECS facility available for payment of interest on regular payment interest deposits.
  • No TDS if the interest income is less than ₹ 5,000 per annum
  • Investors can submit Form 15H/15G in case they do not want TDS to be deducted.

a) Interest rates of Regulat Interest Payment Scheme (RIPS)TN Power Finance FD Scheme-RIPS-Interest rates

Also Read: LIC Housing Finance FD Scheme offers up to 12% yield-Should you invest?

b) Interest rates of Cumulative Interest Payment Scheme (CIPS)TN Power Finance FD Scheme-CIPS-Interest rates

How to apply for TN Power Finance FD Scheme?

  • Download TN Power Finance FD Scheme application form here
  • Fill the form
  • Enclose necessary cheque for the deposit amount. In case you are outside Chennai, you need to take demand draft in the name of the company, payable at Chennai (You can deduct necessary DD charges)
  • In case you are 58 years of age, you need to attach relevant age proof to get a higher interest rate.
  • Applications containing thumb impressions cannot be submitted
  • Duly filled form along with Cheque/DD has to be sent to a company registered office address

What about pre-mature withdrawal?

Below are the guidelines for pre-mature withdrawal of TN Power Finance FD Scheme.

  • < 3 months – Cannot withdraw FD scheme
  • In case of death of application holder within 3 months, FD amount without interest would be returned to the nominee.
  • 3 months to 6 months – FD withdrawal allowed, however, no interest would be paid
  • 6 months to 1 year – Withdrawal allowed, but the rate of interest would be reduced by 3% of what the company is supposed to pay for a 1 year FD scheme
  • 1 year to 5 years – Withdrawal allowed, but the rate of interest would be reduced by 2% of what the company is supposed to pay as rate of interest for the period an investor has invested the money.

Also Read: Mahindra Finance FD Scheme is rated FAAA and offers 12% yield

Can NRI’s apply in this TN Power Finance FD Scheme?

Yes, NRI’s can apply for TN Power finance Fixed deposit scheme. However, any interest remittance would be done only to NRO /  NRE account. Interest paid cannot be repatriated outside India. Maximum eligible tenure would be for 36 months FD Scheme.

Are there any risks involved in this FD scheme?

Company fixed deposit schemes comes with risk.  The payment of interest and repayment of principal amount would depend on company performance. However, since TN Power Finance is wholly owned by the Government of Tamil Nadu, there is less risk. In case of any performance issue by the company, your payment may get delayed, but it would not be high risk like other public limited companies.

Why to invest?

  • Interest rates are high. Yield comes to 13.73% per annum for a 5 year FD scheme.
  • Company is making good profits, hence the interest payment would not be an issue.
  • Wholly owned by Govt. of Tamilnadu, hence safe to invest

Why not to invest

  • Nil

Complete details of TN Power Finance FD Scheme is available at their website

Conclusion: TN Power Finance FD Scheme offers good interest rates.  If you are medium to low risk appetite investor, you can look to invest in such safe investment option to get higher interest. 

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Suresh
Tamil Nadu Power Finance Fixed Deposit Scheme

Suresh KP

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118 comments

  1. Thanks for your article on Tamilnadu Power Finance Corpn.

    I am wondering how it performs well when its funds are used in Government Projects which are reporting marginal profit or loss. Same manner the Tamilnadu Transport Finance Corporation. Pl clarify how it reports good profit when its funds are used for Govt owned Units? are they allowed to independantly function in funding projects ?

  2. So far I am getting the interest properly and I have not faced any issue.
    My deposit period is getting expired in December 20 and I am planning to renew the same for a further period of 3 or 5 year period depending upon the Interest rate they declare

  3. i have deposited 2 cheques for Rs.1.25 lacs each on 16.06.2020 and their acknowledged receipt nos. 0013801 & 0014047. Till today they have not opened the deposit a/c. The cheques were already cleared from my SB A/c. I visited their Office 3 times and there is no proper response. They are neither attending phone call nor their mail. Like this so many depositors are in difficulties. Without solving this issue their Office is going on accepting fresh deposit. Their Ombudsman Telephone No is also not responding. What is the fate of depositors. The responsible authority should attend this.

  4. what is the maximum interest will be paid .

    Can we get quarterly interest pay out.

    what is the maximum amount I can depost

  5. I am going to retire in May 2020. Please advice me investment options. Maximum amount to be deposited is to communicated to me.

  6. Dear Sir,
    I have sent 2 FDs for closure to TN Power Finance & Infrastructure Dev. Corporation as a registered post 2 weeks back. So far I have not developed any response. They dont respond to calls or email. Can you please let me know any person with Phone number / Email address.

  7. Pl, inform the latest FD I interest rates in TPFD for senior citizens & status of its balance sheet. Also inform safety rating for its FD’S. Thanks.

  8. Tamil nadu power finance and Infra are good and efficient. Only problem is they donot answer phone call. either it is busy or no reply or no net work. People investing from other parts of India find it difficult to communicate they must have hot line someone on call all the time. Now today 2 second April 2019 till now interests not credited in our account

  9. hi, could you review or comment on this FD under current scenario. The FD rates have changed and so have their performance. Is it a good option to invest?

  10. The interest rates mentioned in this article is entirely different from those mentioned in company website. Rates have been changed from 26/5/2018.& it is very much less than shown above.

    1. Yes it is correct, I have deposited in the month of October 2018, the interest rate for 5 years FD is 10.17% only, But here 12.91%. So I think this site is not correct.

        1. Dear all, This article pertains to April, 2014. There is lot changed now. I can write new article on this again as there is some demand from readers

  11. Sir,

    i am planing to deposit 3 lackhs in your tn power generation corporation for3 yrs. where shall I contact? what is the FD interest rate. Pl inform the details.

  12. 09.05.2018.

    Sir,
    i would like to deposit an amount of Rs 7 lacks in your TN power generation corporation for
    5 yrs Fixed deposit. what is the procedure?,where shall i contact?. what is the interest rate?.
    How much amount I got in maturity period?. if nomination person felicity is available.
    please inform us, as early as possible.
    Thanks.
    Yours truly
    A.THAMILSELVAN

  13. I am 58 years old and staying in Kerala. What will be the monthly interest I get if I deposit 2 lakhs for the period of 3 years. Request you to send me reply on my email address.

  14. I am planning to deposit around 3 lakhs with you for a period of 5 years.  monthly interest.  Can you please inform me as how much is the interest rates.  Also inform me about cummulative interest (quarterly / bi-yearly- 6 months).  Thanks, Nagarajan.

  15. Please let me have the details of:

    1. 5 year plan.

    2. Can I get quarterly interest on a 5 year plan?

    3. I do not have any income as I am retired. What is the maximum I can invest to avoid [a] TDS. [b] I file my returns every year. Please suggest.

  16. S.RAMAMURTHY VILLA-257 (SERENE PELICAN)–No.49 MAIN ROAD–PINNATCHIKUPPAM–SELIAMEDU POST–PONDICHERY-607402

     

  17. We r sen cit 81 & 74 yrs old. the info we have is 36 mnths. RIP monthly int 9% & Qtly 9.07% .But ur web site says 10.5 & 10.59%.  (1)  Which is correct. (2) Also we want to be sure how safe is our principle amount. Now Especially since there is such a turmoil in the political front.We can ill afford a loss.

    Kindly guide us. 

  18. Sir,
    I am an employee retired from the service of an enterprises wholly owned by AP State Govt. Pension scheme is not there. only dependent on PF which is Rs.987/- PM. My son provided me Rs.9.00 Laks in my name jointly with my wife. Neither of us having any other source of income other than the principal amount of Rs.9.00 Lkhs deposited in POST OFFICE MIS ACCOUN, bearing interest of 8.4%PM. oF Of course no recovery is being made for IT as both of us are above the age of 58 years. I would like to ask you, in the event of the said MIS account is withdrawn from the PO and deposited in TNPIDC for monthly payment of interest, will attract any deduction of IT as per rules in vogue. I reiterate that there is no other source of income except the monthly interest of PO being received.

  19. Is this safe and secured to invest in a NBFC with RBI approval? I request a reply at the earliest possible

  20. AS A SENIOR CITIZEN AGE 62, CAN I INVEST IN MUTUAL FUNDS AND PLEASE GUIDE ME AS ON DATE WHAT AND WHICH MUTUAL FUND IS SAFE FOR MY CAPITAL AND GIVING GOOD RETURNS FOR A MINIMUM PERIOD OF 3 YEARS

  21. How safe is the investment in your corporation? I have already burnt my fingers in one or two such firms. Pl advice 

     

  22. Dear sir,
    Kindly furnish details about latest fd schemes in tamil nadu power fin corp and
    LIC housing. And also furnish safe & higher interest rate options in other corporates.

  23. Its a very safe investment. But only catch is when you need to ask or do something about your deposits you need to be physically there at their office and get frustrated with line ups. Imagine a room full of frustrated Senior citizens asking all sorts of questions. Bottom line is if you need higher interest you need lots & lots of patience.

  24. I have recently advised a friend of mine to invest in TN Power Finance Corpn. and earlier to many of friends who took VRS and retired from my Co., as I had invested here and understood to be good. But now, my friend tells me that a recent depositor did not get his deposit refunded and did not get proper reply and response. Can any one tell us the facts of their experience. This would benefit all outstation depositors.

    1. My advice is to AVOID any state government owned corporation for investment. The red tapism is high. Do you really to tolerate this? Think!

    1. Need Document : 15G form for tax saving.
      Pan card xerox, and any other govt ID proof. and they only accepted cheque.

  25. I have no problems in getting interest from this organization , I have invested to the tune of Rs 16 lakhs . I am getting the interest promptly . ….Dr.v.srinivasan

      1. Reply to Mr. Desingh ……Sir…I am sorry that I could not note your query …..I am getting interest prioptly for the last 10 years ………Dr.V.Srinivasan

  26. Dear Suresh,
    I did not get any response from you about my previous quarries, hence once again being produced.
    I am from West Bengal. I have gone through your valuable comments. I have some quarries/doubts/anxieties about Tamil Nadu Power Finance & Infrastructure Development Corporation Ltd.’s Fixed Deposit scheme. I am a retired person and my only income source is MIS from F.D. I intend to invest a handsome amount in TPFIDCL’s F.D. But my main anxiety is all their contacts are non-responsive. They never lift the phone, they never ( almost 99 times in 100 mails) reply the e-mails. Please tell me in case of any problem like non-payment of monthly interest or non-receipt of the FD certificate how can I reach to their concerned official ? Even I have planned to go to their Regd. Office at Chennai personally to have a on the spot survey. Can you please guide me from Chennai central station how can I go to their office to deposit the FD application form ? I want to travel by public transport system to reach their office. Please also tell me to deposit the FD application money do they accept at per cheque of any bank ? Please let me know all these things as quick as possible, since I am planning to go to their office with FD application form within one or two days.

    Thanks,

    ASIM KUMAR DEBNATH
    Hooghly, West Bengal
    09874411475

    1. Hi Asim, The problem what you indicated as “non responsive” is the main problem. This is the main reason why investors are not ready to invest in such FD schemes though these are safe investment bets. I do not have exact postal address to guide you, however you can reach on thier website.

    2. Hi asim i tell u the address,
      Tufidco – Powerfin Tower, 490/3-4, Anna Salai Nandanam, Chennai, Tamil Nadu 600035.
      get auto or bus from central to nandanam, it will take 30min,,,

    1. It is owned by Tamilnadu Govt, hence it is safe to invest. In case there is problem with company in future, you would get your money back, however there could be delay

  27. I got immediate response from TNPFIDC . They informed me that if 15G/15H is submitted no TDS will be there, hope they will stick to it.

  28. i would like to invest 10L.. Can u pls tell me which bank FD is best? and can i invest in TNPF? any one have account in this sector? pls share all.

  29. Hi Suresh
    I would like to get ur view on my query that if i want to invest approx 50 lakhs and want to generate a monthly income and live on it,what will be the safest mode,if it’s bank FDs then since only 1 lakh is secured by Govt. so shud i invest 50 different banks? what according to you wud be the best /safest & convenient strategy in my required scenario.plz advice.

    1. Anand, Rs 1 Lakh is not per FD or per bank. It is your overall FD’s across banks. You can adopt following strategies 1) Invest in 2-3 banks FD schemes 2) Invest in bank FD, Post office MIS scheme, MF debt funds 

      1. Thanks dear KP for ur reply plz tell me if i only keep the full amt in my Icici ac for convenience is it fine or will it be a bit risky?( 2)Are debt funds equally safes as bank fd ? Are liquid funds safer as psu bank fd/ savings ac as is claimed by certain articles? Thanx again for ur help…

        1. Awaiting ur reply dear Suresh on my above query also is it possible to have a monthly income option in debt funds? Nw bank fds are reducing interest rates my monthly income will be v less too!! Wat to do now dear ? I only hv 50 Lakh!

    2. guys no need for agent. Take DD favoring” TN Power Finance & Infra Development Corp. 2) Fill in the form, 3) take a copy of both for your reference, 4) Courier to Chennai address, 5) within 10-15 working days you FD will be issued.

  30. I had the similar experiance as no agent or contact person could be traced even in a big place like Delhi.

  31. Also the list of their Agent/Distributors seems to be very old as no phone numbers are working or are correct.
    Do you know any sensible & responsible Agent/Distributor of theirs whom one can deal with.

  32. I tried contacting people at Tamilnadu Power finance but no response as it happens in any other Govt owned company.
    I was not sure if they properly acknowledge submission of Form 15G. If they act like any other Govt owned entity that means TDS is sure to get cut.
    If such a thing happens at what rate TDS would be cut?

  33. Like wise is the Tamilnadu State Transport Finance Corporation deposits. Please review this also.

    1. Hi Anand, Your query was not clear, hence could not respond. If I understood right, you are looking for best monthly income option. Pls check this article where I have posted several tips. https://myinvestmentideas.com/2013/08/best-investments-to-get-monthly-or-regular-income/

      1. Thanx fr ur reply suresh just want to ask further that is there a way to invest full 50 lakh in pomis ? If not then r bank fds equally safe is there really some risk in them of capital loss?
        Thanx againg for your valuable help dear.

        1. Max amount in POMIS is Rs 4.5 Lakhs. You can invest along with your spouse for another Rs 4.5 L. Balance you can invest in nationalized bank FD schemes. 

  34. I have a fd joint with my husband Syed inayathulla,he is the prime holder,but since he has expired on march 2014 I would like to delete his name and my daughter’s name,what is the procedure,there is also an address change.I would also like to know your phone number because the number mentioned on the fd there is no response which is 044-24329945.

  35. Hi Suresh ,need ur valuable advice since im planning to put all my savings( approx 50 lakhs) into FDs and live of the interest on monthly basis and also save a bit so that my capital grows too. something like an early retirement (im almost 40 yrs of age) what would be a super safe yet high interest, monthly option that u will suggest in my case.ive hear that interest rates may fall soon…plz help

  36. Is Tamilnadu Power Finance accepting FDs at present? If yes, I would like to know their agent's contact detais for Delhi and Gurgaon.

  37. Hi Suresh, I am based in Gurgaon. I want to invest in TNFC FD for monthly income in non cumulative scheme. Do the have system of electronic payment directly to my bank? Secondly, if i invest less than Rs 45000, do i have to reflect interest amount in my IT return?

    1. Hi Aps, I do not know exactly, but yes most of the company FD schemes offer this facility. Interest from Company FD schemes is taxable and you should indicate the same in ITR and pay necessary tax

  38. We had deposited Rs.30,000/- with TDFC  at their Regd. Office address for 5 years in Scheme-1 PIPS.  The FD receipt has not yet been sent to us by the Co. by Regd. Post.    The Cheque/D.D. drawn in favour of TDFC has already been cleared by them on 19/6/2014 at CHENNAI.

    1. Hi UR, It would take 2 to 4 weeks period for you to get FD receipt. Since it is cleared on 19th June, you should get this before 17th of July

  39. Hi Suresh,

    When you say 12.91% is the effective yield offered for 5 yr period for non-senior citizens , is this pre-tax or post-tax returns? if it is pre-tax returns, how much would be post-tax returns when applied for a resident indian?

    For a non-resident indian, how much returns would be applicable for 5 yr period? Would there be any tax applicable for non-resident indians?

    How much is the success ratio of accepting the 15G/15H forms for tax claims by this company?

    1. Keshav, All returns indicated on this website are taxable unless I specifically mention that this is exempted from income tax. Post tax returns would depend on invidual income tax slab. If you are in 10% tax bracket, 10% tax needs to be paid on such FD interest. All companies would accept 15G/15H. It is individual responsibility to declare income and pay income tax on that

  40. hi suresh i am your regular follower  ….

    you can research the below and post it in your site ….

    there i salso another gov owned company suresh which i know ,,,, its callsed tamilnadu transport finance corporation http://www.TDFC.in …. you can check that also it also offers good interest rates   …

  41. dear suresh,

    Thank you for the article. What is the difference between CIPS 1 and CIPS 2 for 60 months period?

    1. Dr. Sudhakar, they a seperate objective e.g. CIPS-1 can be invested for min of Rs 10,000 and any amount higher than that. However CIPS-2 can be invested in multiples of Rs 608 only which would fetch you Rs 1,000 in 6 months. e.g. Rs 608 would give you Rs 1,000 and Rs 1,216 would give you Rs 2,000 at maturity etc. This is one of the best way to plan.

    1. Hi Ravi, I have not inputted print option as of now. You can use Control+P and print it. I would work out on how you can take a better print out by incorporating a button on the article itself.

  42. Looks like someone has deleted my post. Please let me know for 60 months cumulative option, even though the rate of interest is higher in this FD, i am getting less maturity amount compare to shiram city finance FD.. Can you let me know how the maturity amount is calculated

    1. Manish, I keep answering based on some order (easiest to tough ones). I just responded to your other query. Pls bear and give me time between 24 to 48 hours to respond.

  43. Incase if I am investing in 5 year FD, Can I show this Under 80C as investment for Tax excemption?

  44. Hi Suresh,

    I have a question on the maturity amount. Under the cumulative interest payment for others, if I invest 10000 for 60 months, I will get Rs 16453 with a effective yield of 12.91. But if I invest same amount in shriram city union finance secured ncd april 2014, for the same duration, I am getting 17430 on maturity with a percentage of 11.75. So wanted to know despite having higher return percentage, why TN power is giving less amount on maturity.

    1. I have not noticed this Manish. I investigated for some time and gave up. These two data is from company websites only. You need to give some time for me to investigate and check in case there is any error in the tables provided by them.

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