10.9% Tamil Nadu Power Finance Fixed Deposit Scheme 2020 – Should you invest?

Tamil Nadu Power Finance Fixed Deposit Scheme - Features, Issue details and Interest RatesTamil Nadu Power Finance (TNPFC) Fixed Deposit Scheme 2020 Review


Banks have been reducing FD Rates in the last few quarters. If you are looking for a safe investment option with higher interest rates, Tamil Nadu Power Finance FD scheme could be a best bet for you. Tamilnadu Power Finance and Infrastructure Development Corporation (TNPFC) offers higher interest rates up to 8.75% and one can can get yield up to 10.9%. These FD’s are guaranteed by the Government of Tamilnadu, hence considered as safe FD. In this article, we would provide Tamilnadu Power Finance FD Scheme details of 2020, Interest rates and also indicate any negative factors in this Fixed Deposit Scheme.

Also Read: KTDFC Fixed Deposits offer 9.8% Yield – Is it safe to invest?

About Tamil Nadu Power Finance and Infrastructure Development Corporation Limited (TNPFC)


TNPFC is wholly owned by the government of Tamilnadu. Registered with RBI as a Non Banking Finance Company vide Regn no. 7.00389 Classified as a Hire Purchase Finance Company. It mobilizes funds through various Deposit Schemes. It provides Financial Assistance to Power and Infrastructure Projects and provides funds to Tamil Nadu Generation and Distribution Corporation Ltd. The Corporation has been making a profit since its inception. It declared dividend @ 30% on Profit After Tax for the Financial year 2017- 2018. Their deposit schemes are as per RBI Guidelines.

Tamil Nadu Power Finance Fixed Deposit Scheme Details in 2020


1) Tamil Nadu Power Finance FD’s comes with 1 year to 5 years tenure.

2) This FD scheme, offer cumulative and non cumulative options. In cumulative option, the interest would be paid on maturity. In non cumulative option, interest would be paid monthly or quarterly or annually based on the option chosen.

3) You can deposit a minimum of Rs 25,000 and in multiples of Rs 1,000 in this FD scheme.

4) TN Power Finance Interest rates are ranging between 7.5% to 9.11% for general category.

5) Senior Citizens would get 0.5% higher interest rates. The yield works out to be up to 10.93% for a 5 year cumulative FD Scheme.

6) These interest rates are effective from 22nd January, 2019 onwards and valid in 2020 too.

Also Read: Best Short Term Mutual Funds to invest in India

What are Tamil Nadu Power Finance FD Schemes available?


It offers two FD options:

1) Regular Interest payment Scheme (RIPS):  This is non-cumulative fixed deposit where the interest would be paid monthly, quarterly or annually. On the maturity, you would get your investment back. These FDs are available for 3 years, 4 years and 5 year tenure. Interest Rates are ranging between 8.25% to 8.57%, depending on the tenure. Senior Citizens would get 0.5% extra interest rate.

2) Cumulative Interest Payment Scheme (CIPS): This is a cumulative FD scheme where the interest would be compounded and paid on maturity. The tenure of these FDs is for 1, 2, 3, 4 and 5 years. Interest rates are in the range of 7.5% to 8.25%, depending on the tenure of the FD selected. Senior Citizens would get 0.5% extra interest rates.

What are Tamil Nadu Power Finance FD interest rates in 2020?


Here are the details of interest rates for general category. Senior Citizens would get 0.5% extra interest rates. Refer to the respective columns.

A) Interest rates on Regular Interest Payment Scheme (RIPS)


If you are thinking how much interest you would get if you invest Rs 1 Lakh in cumulative / RIPS FD scheme, here is the calculator.

Tamil Nadu Power Finance Corporation FD Scheme - How much interest you get for 1 lakh in RIPS scheme

B) Interest rates on Cumulative Interest Payment Scheme (CIPS)


Tamil Nadu Power Finance FD Interest Rates 2020 - Cumulative (CIPS) Scheme

Who is eligible to open a Tamil Nadu Power Finance Fixed Deposit?


The following are eligible to open this FD

1) Resident Individuals

2) Hindu Undivided Family (HUF)

3) Trust

4) Government firm

5) Private Firms

6) Societies

7) NRI’s are also eligible to open this FD scheme with certain terms and conditions.

How to Open or apply in Tamil Nadu Power Finance Fixed Deposit Online?


Generally, all the fixed deposits these days can be opened online. But government organizations FD scheme are almost manual. However, Tamil Nadu Power Finance FD Scheme online facility is very much available. You can visit this link to see how to deposit in Tamilnadu power finance.

You can also open TNPFC FD Offline by submitting documents to nearest centers. Please check the website for more info about this.

What documents are required to open Tamil Nadu Power Finance Fixed Deposit Scheme?


You need to submit an Aadhaar Card to open TNPFC FD.

In case depositor chooses to have a different address other than the address indicated in the other, any of the below documents needs to be submitted as Proof of Address:

Passport

Voter ID

Driving license

Ration card

Telephone bill (not older than three months)

Bank Account Statement of a Scheduled bank

Electricity bill (not older than three months)

Water bill (not older than three months)

In case the address mentioned in the above documents differs from the present address, copy of any one of the following document should be furnished for proof of residential address.

Telephone Bill / Bank Account Statement / Letter from any recognized public authority / Electricity Card / Letter from Employer. · In the absence of the above documents, the company will not be able to process the application for deposit / renewal.

Why to invest in this TNPFC FD scheme?


Here are some positive factors.

1) Tamil Nadu Power Finance and Infrastructure Corporation (TNPFC) is a Tamilnadu Government owned entity and safe to invest in their FDs.

2) You can invest in this FD scheme with a minimum of Rs 25,000 and get higher interest rates up to 8.57% for regular investors and up to 9.11% for Senior Citizens and get high yield up to 10.93%.

3) You can enjoy FD options of cumulative FD, monthly interest FD or Quarterly FD or yearly interest FD.

Why NOT to invest in Tamilnadu Power Finance Corporation FD?


Here are some negative points.

1) Premature withdrawal rules make it unattractive.

2) The FD opening and closures would same some time in Government own entities. It cannot happen on same hour the way it happens in banks.

Some of the FAQs about TNPFC Fixed Deposits


1) How Tamil Nadu Power Finance FD Calculator work?

You can visit Tamilnadu Power Finance Interest FD calculator where you would know the interest rate and maturity amounts before you invest. This way you know what is your FD maturity amount after a specific period of tenure. You can plan it appropriately.

a) Regular Interest Payment Scheme FD calculator

b) Cumulative Interest Payment Scheme FD calculator

2) What is TN Power Finance Corporation FD Rating?

Are you thinking whether “is it safe to invest in Tamil Nadu Power Finance FD”?. ICRA has rated these FDs as “MA-Stable”.  The rating is valid up to August 18, 2020. Since it is owned by TN Government, one can consider this as safe FD.

3) How is the Interest paid on FDs are taxed?

Tamil Nadu Power Finance Corp would deduct TDS on interest exceeding Rs 5,000 per annum like any other company. However, one need to calculate total interest received and pay income tax based on the income tax slab applicable to them in that year.

4) Can I take a premature withdrawal in this TNPFC FD?

One can take a premature withdrawal only after 3 months from the date of Tamil Nadu Power Finance Corporation FD. Here are the premature guidelines of this FD scheme.

a) If you wish to break the FD between 3 to 6 months after opening FD, no interest would be paid.

b) If you wish to break FD after 6 months of opening FD but before 12 months, you would get 3% lower rate compared to the interest rate offered for 12 months tenure FD.

c) If you wish to break FD after 12 months of opening FD but before 24 months, you would get 2% lower rate compared to the interest rate offered for 24 months tenure FD.

d) If you wish to break FD after 24 months of opening FD but before 36 months, you would get 2% lower rate compared to the interest rate offered for 36 months tenure FD.

e) If you wish to break FD after 36 months of opening FD but before 48 months, you would get 2% lower rate compared to the interest rate offered for 48 months tenure FD.

You need to give 15 days advance intimation for FD premature withdrawal.

5) When interest is paid for Regular Interest Payment Scheme (RIPS)?

In case of non cumulative deposits / RIPS, interest would be paid on the last day of the month or quarter or year.

6) Can we submit Form-15G or Form-15H?

Yes. Individuals can submit a form 15G or 15H to Tamil Nadu Power Finance to not to deduct TDS on their FD interest.

7) In an emergency, can I get a loan against my FD?

Yes, but after 3 months from the date of opening FD which would be at the discretion of the company. One can request for the loan on this FD which would be up to 75% of the FD amount. The interest rate would be 1% higher than the FD interest rate on such loan. One can avail such loan only for twice during the FD tenure.

8) Can NRI’s invest in this FD Scheme?

Yes. Here are the guidelines for NRI to invest in the TNPFC FD scheme.

a) Deposits from NRIs are accepted as defined in the Income Tax Act, 1961 (as amended).

b) NRIs should remit from their Non-Resident Ordinary maintained with banks on non repatriation basis provided that the amount deposited with the company does not represent inward remittances of transfer from NRE/FCNR (B) accounts into the NRO account.

c) NRI Deposits are accepted subject to the specific understanding that the maturity Value of deposit and the interest thereon will not be repatriated outside India.

d) NRI Deposits are accepted for a maximum period of 36 months.

You may like: ICICI Home Finance FD offers upto 11.3% Yield – Should you invest?

9) If I am an existing customer of Tamil Nadu Power Finance, would I get any extra interest?

No. They would not get any extra FD interest.

10) What are the Tamil Nadu Power Finance Fixed Deposit toll free number or customer care details?

You can reach at any of the following details for queries or complaints.

i) You can write to them at their registered office mail ID: power@tnpowerfinance.com

ii) You can reach them at their registered office contact nos Ph: 044 2432 9945 / 044 2432 9946 and whatsapp to 044 24329950.

Should you invest in Tamil Nadu Power Finance Fixed Deposit Schemes in 2020?


Tamil Nadu Power Finance is 100% owned by the Tamilnadu Government. Its FDs are safe as the entity is owned by TN Government. It offers highest interest rates where yield comes up to 10.9%. Even TN Power Finance FD can be opened online which is easier than the manual process. One should consider some of the negative factors like premature withdrawal guidelines + slow processing of transactions. Beyond this, it is a good and safe FD scheme to invest.

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Suresh KP

Tamil Nadu Power Finance Fixed Deposit Scheme 2020 Review

Suresh KP

I have done my Post Graduation in Finance. I have over 20 years of experience in analyzing various investment options and money saving ideas. I love doing financial planning, Mutual Fund Analysis, Searching long term Stocks for wealth creation, IPO Reviews, Analyzing Life Insurance and Health insurance Plans etc.

60 Comments

  • Hi Suresh / Devandram

    After FD created in Online / Will you get the hardcopy too ? and then 15 G or 15 H online can be applied to avoid the TDS ? Since this FDs are safe investment and I read other article says that govt providing the security upto 4000 crores of FD only ? What it mean by ? if so what will happen above the specified limit

  • Dear Suresh,

    I am an NRI having my money in NRE account in my Bank in India. I have NRO account also but the balance is NIL since I have no earning in India to be transferred to this NRO account. In the rules and regulations of TN power finance, can you explain the following rule :

    “NRIs should remit from their Non-Resident Ordinary maintained with banks on non repatriation basis provided that the amount deposited with the company does not represent inward remittances of transfer from NRE/FCNR (B) accounts into the NRO account”

    Can I open an online account from a foreign country by transferring the FD in NEFT mode?

    • the rule itself says No.

      • Hi Suresh / Devandram

        After FD created in Online / Will you get the hardcopy too ? and then 15 G or 15 H online can be applied to avoid the TDS ? Since this FDs are safe investment and I read other article says that govt providing the security upto 4000 crores of FD only ? What it mean by ? if so what will happen above the specified limit

  • I love this article, really good info….

  • DR. BISWAMBHAR AGARWAL

    (May 18, 2020 - 6:52 am)

    Many thanks,I have invested online in tnpfc fd through link provided by you, it’s very smooth process, everything online and it took hardly 5 minutes, moreover there is their app also available on Google Play Store which makes thing even easier

  • Jaganathan Premnath

    (May 17, 2020 - 9:46 am)

    Very clearly explained the all information. Very useful.

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