KSFE Fixed Deposit Schemes – Should you invest?
Bank FD Schemes are offering low interest rates. There are several companies offering FD Schemes with high rates, however, those may not be safe. Investors are looking for safe fixed income options. Kerala State owned, Kerala State Financial Enterprise (KSFE) is offering FD Schemes with high interest rates. What are various FD Schemes offered by KSFE? What are the interest rates on such KSFE FD scheme? Is it safe to invest in KSFE FD Scheme? Should you invest in KSFE Fixed Deposit Schemes? This is an article based on "Suggest a topic" from one of the reader.
Also Read: Top 5 Value Mutual Funds for 2018
Overview about KSFE
Kerala State Financial Enterprises, in short KSFE, was formed by the Government of Kerala with an objective to provide an alternative to the people for private chit fund promoters. To bring social control over the chit fund business and save the innocent people from the clasps of private chit fund operators, this company was formed in the year 1969.
KSFE is a miscellaneous non-banking company fully owned by the Government of Kerala. It enjoys the unique status of being the public sector company of India which runs Chits. Also, it is amongst the few profit-making companies governed by the Government of Kerala. In fact, it has always witnessed progressive profits since its inception. The company pays huge sums of money to the government earned in the form of guarantee commission, service charges, and dividend.
KSFE offers a huge variety of products and services with Chitty as its main product. It deals in personal loan, housing loan, car loan, gold loan etc along with short term deposits and fixed deposits scheme. The institution also provides two fee based services namely money transfer and safe deposit locker.
Recently, KSFE has opened its chit-fund scheme for NRI Keralites also. There are certain norms laid down by the institution and if satisfied, they too can be benefited through this scheme.
What are Various FD schemes offered by KSFE?
KSFE offers an array of financial products and schemes. Here is the detail of few products of KSFE.
KSFE Short term deposits
KSFE is accepting short –term deposits for a period that range between 30 days to 364 days and offer very attractive interest rates as compared to other financial institutions. There are different slabs available for different time horizons. The investors can use this scheme to park their funds temporarily. The minimum amount deposited under this scheme is Rs. 5,000 and deposits are accepted in multiples of Rs. 500.
KSFE Normal Fixed deposits
The facilities, services and features of KSFE fixed deposit is similar to other banks and financial institutions, but the interest rates offered them are much higher. This makes the investment very lucrative. The effective rates of interest are higher than the published interest rates, because of monthly payment of interest.
KSFE Sugama Deposit scheme
It is one of the best deposit schemes of KSFE. It is similar to a savings bank deposit in mode and procedure, but offers the best interest rates in its category with 5.5% whereas bank rates are 3.5%. Sugama acts as a safe and sound transaction scheme for automated chitty installments payment, deposit interest withdrawals and day-today dealings.
What are the Interest Rates on KSFE FD Schemes?
Given below are the interest rates of few schemes of KSFE
Interest Rate of KSFE Short Term FD Scheme: The institution provides the facility of short term deposits as short as 30 days. For 30 to 60 days deposit, the interest rate is 3.25% p.a, 61 days to 90 days, the interest rate is 4.25% p.a, for 90 to 180 days, it is 4.75% p.a, for 181 to 364 days. 5.50 % p.a.
Interest rate of KSFE Fixed Deposit: The fixed deposit has to be for 1 year and above but not exceeding 3 years. The interest rate is 7% per annum for FD to the public and 7.5% of the chitty prize money deposits. The interest rate is 8% p.a. for senior citizens.
Interest rate of KSFE Sugama FD: The interest rate on Sugama deposit is 5.5% on the minimum balance maintained in the account between 6th and last day of the month. The interest is credited twice in a year, on 30 September and 31 March.
Some of the FAQS about KSFE FD Schemes
1) How safe is KSFE FD Scheme?
KSFE is Kerala state owned enterprise, hence it is safe to invest in such FD Schemes
2) Does KSFE FD have any insurance coverage?
Like any other bank FD Scheme, KSFE FD covered by deposit insurance coverage.
3) Are there any branches for KSFE?
The Corporate Office of KSFE is at Thrissur. It has 11 Regional Offices at
i) Thiruvananthapuram ii) Kollam iii) Kottayam iv) Ernakulam v) Thrissur vi) Kozhikode vii) Kannur viii) Attingal ix) Alappuzha x) Kattappana and xi) Malappuram for coordinating and controlling the branches.
4) Where is the enterprise located and what are its contact details?
Here are the details of KSFE.
“BHADRATHA”, Museum Road, P.B. No.510,Thirussur – 680 020. Ph No: 0487 2332255. Toll Free No: 1800 425 3455 Fax: 0487 – 2336232 E-mail : [email protected]
5) Can we apply KSFE FD Scheme online?
Currently one has to visit their RO or branch office to do FD scheme.
Also read: 10 Best SIP Plans in India
Should you invest in KSFE Fixed Deposit Schemes?
KSFE is a public sector company fully owned by the Government of Kerala. Since its inception, the company has always headed towards growth. The financial and service contribution made by the KSFE towards the economy and development of Kerala cannot be ignored. Moreover, it is the only company that mobilizes its funds within the state itself whereas other financial institutions and banks channelize their funds collected form Kerala in advancing to other states. The interest rates offered by it are much higher than other institutions. As such, there is no risk also involved in it which makes the investments very productive. If you are low to moderate risk taker and looking for fixed income option, you can invest in KSFE FD Scheme.
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KSFE Fixed Deposit Schemes – Should you invest
Now how much interest for 1year to 3years FD.
Can I do FD in NRE
Will there is a option for receive the interest of 3 years Term Deposit in every month?
Will there’s a option for receive the interest of 3years term deposit in every month?
Is there any tax benefit for the fixed deposit?
No Tax benefits available for this FD scheme.
below 40000 yearly income from fd you get tax benefit.more than 40000 you just submit form 15G
Are the FD refunded on the maturity date. Has there been a negative experience.