KTDFC – FD Scheme offers 12.91% yield – You can invest
This post is based on request made by Subodh Pandhya at “Suggest a topic”. Kerala Transport Development Finance Corporation (KTDFC) is Govt of Kerala undertaking. They have been offering FD scheme and yield works out to be 12.91%. This article provides more insights and highlights several other factors about KTDFC FD Scheme.
About KTDFC
KTDFC is a Kerala Government owned Non Banking Financial Company registered under the Reserve Bank of India. KTDFC accepts deposits from the public and these deposits are guaranteed by the Government of Kerala and these are secured investments.
Also read: SREI Secured NCD offers 11.75% interest rates-How safe it is?
Features of KTDFC FD Scheme
- KTDFC FD Scheme is available in two variants, PIPS and MMS Scheme.
- PIPS option: Under Periodic Interest payment option scheme (PIPS) interest is paid every month or every quarter during the FD scheme period.
- MMS option: Under Money Multiplier Scheme (MMS) interest is compounded every month and paid at maturity of the FD scheme.
- KTDFC FD Scheme offers two different interest rates for < 25 Lakhs and > 25L.
- Minimum investment required is Rs 10,000 and there-of you can invest in multiples of Rs 1,000.
- The FD scheme is available for 1, 2, 3, 4 and 5 years tenure.
- Senior citizens would get 0.25% additional interest rate over and above these rates.
- The Fixed deposits are guaranteed by Govt. of Kerala, hence they are safe investment options.
- You can apply for 15G/15H in case you do not want TDS to be deducted on interest amount.
- You can apply for pre-mature withdrawal after 3 months. If you withdraw the FD between 3 to 6 months period, you would not get any interest amount. If you withdraw the FD scheme after 6 months, you would be paid 2% less than normal contracted interest rate. You need to give 30 days’ advance intimation to have pre-mature withdrawal.
Interest rates are indicated below
Who Can Apply?
Fixed Deposit can be placed by Individuals, Companies, and Government bodies, Trusts, Firms, Institutions and HUFs.
How to apply for KTDFC FD Scheme?
- Click here to download the application form: http://www.ktdfc.com/images/PDF_downloads/applform.pdf
- You can directly submit the application form along with cheques at KTDFC offices.
- You can also apply through HDFC Banks and IDBI banks who are the fund arrangers/agents for this FD scheme.
- Please read this document for more rules and guidelines: http://www.ktdfc.com/images/downloads/Rules_Deposits.pdf
Why to invest?
- FD amount and interest are guaranteed by Govt. of Kerala. Hence this is safe investment option.
- High interest rates up to 12.91% yield.
- You can fill form 15G/15H in case TDS should not be deducted on your FD interest. There is no other company FD scheme which offers this unique feature.
Also read: 10 Best Short term investment options which are available right now
Why not to invest
- If you want to have pre-mature withdrawal, you would get 2% less interest rate.
Conclusion: KTDFC FD schemes are secured and offer high interest rates. In case you want to park your money for 2 to 5 years time frame, you can invest in such safe investment option.
If you enjoyed this article, share it with your friends and colleagues through Facebook and twitter.
Suresh
KTDFC – FD Scheme offers 12.91% yield – You can invest
- Kosamattam Finance NCD – Nov-2024 Issue – Details and Review - November 24, 2024
- Best Large Cap Mutual Funds to Invest in 2025 - November 23, 2024
- How to Balance Risk and Reward in Your Investment Portfolio - November 19, 2024
Pls let me know about Ur fixed deposit plans
Beware !!!Its ‘Kerala government’ scheme!! …like solar. Don’t invest your hard earn money. Ommanchandy govt is corrupted.No guarantee of return.
Hello Mr. Suresh,
Is it still the best government backed/assured FD scheme in Kerala?
Hi, Suresh,
Is KTDFC 100% safer???, Please post your comments ASAP
It is Keral Govt owned FD Scheme. You can invest.
intend to invest major amts in next 2 mts. am 65 so time windo is limited. any tax sheltered inv. available to increase net yield. safety, at least AA is desirable. pls advise, thanks maurice
Hi Maurice, There are several AA rated FD schemes. Pls see this article for top rated FD schemes. https://myinvestmentideas.com/2014/04/5-top-rated-company-fixed-deposit-schemes-for-superior-returns/
According to rule72,themoney doubles in 6yrs with 12%interest rate,are there any banks ,companies offering schemes for 6years with 12% interest rates?
Hi Dr. Sudhakar, There is Secured NCD scheme which is coming next week which can double your money in less than 6 years. I have written an article which would be posted automatically tomorrow morning. Please go thru this and give your feedback.
Hi suresh
I would like to know the liquidity of long term NCD being floated in the market. say i want my investment back jst after 3 year whether i will b getting my capital or not as minimum or chances are there some appreciation or loss pl tell
sundeep
Sundeep, All NCD’s which are being issued are issued in demat form and physical form. If you have applied in demat form, they are traded on stock exchanges like any other stock. However depending on the maturity date, the price of the bond would fluctuate. You should be ready to forgo say 3%-5% of capital amount if you want to withdraw before maturity. These are good to hold till maturity.
Hello suresh
I m staying in odisha.can I invest in this scheme …what is procedure
Hi Shiva, It is immaterial where you are staying. I have given the process in the article on how to apply KTDFC FD scheme. Please go thru this process.
i can invest 100.dollars a month on short term no risk i live in oregon american citizen can i invest in india o other places open bank acounts any ideas or information please help
Hi Lary, I am not sure whether American citizen can invest in India. You may need to contact your local financial planner.
Hi Suresh,
I think there is a mistake in the Interest Rates sheet. A Cumulative Interest of 10.25% works out to an effective yield of 12.57% and not 13.32% as shown. Here's a small calculation I did using CI & SI. Let me know if I've done something wrong or the interest shown is indeed wrong.
I've used the usual formula –
CI = Principal * (1 + Interest Rate%)^Term
Effective Interest (SI) = (Interest Earned) * 100 / (Principal * Term)
Principal
10000
10000
Interest Rate
10.75%
10.25%
Term
5
5
CI
16661.68
16288.95
Interest
6661.676
6288.946
Effective (SI) Rate
13.32335
12.57789
Let me know your thoughts.
Hi Karthik, Just observe the comments in the below table and row no.1. The interest is compounded every month. Means you would get higher interest rate if you calculate annually or at maturity.
Bhai log,
pls revisit, interest rates are revised and are offered in the range of 10 -10.5%
http://www.ktdfc.com/deposites/schemes
Ram, The analysis was on specific date. Interest rates may change as all companies are increasing the rates. Thanks for your valuable feedback. This would help our readers too.
I am glad to read your article about KTDFC and would visit your website frequently
thanks & regards
gilson
Thank you Suresh for this article. Its really nice to see such safe and good investments options coming up.
Just wanted to know your view on one thing. Do you feel when so many new FDs and NCDs offering attractive yeild we should still consider investing in MFs in this flactuating market condition?
Arghya, For low risk investors, these are good. But how long do you wait only for up to 12% returns. For e.g. I want 12% returns, but I also need something beyond 15% returns, hence I would partially invest in NCD or Tax free bonds and also invest in mutual funds for long term.
Thanks Suresh.So will it be a good idea to invest lumpsums in the FDs and NCDs, and small SIP in MF for long term (>10 years)?
Good strategy Arghya. However you indicated small SIP, you should invest big in SIP every month 🙂
Hello Suresh,
Thanks for such nice posting… I came to know that REPCO bank is also offering some FD with 10 % interest along with accidental insurance coverage. But I couldn't get more details on that, could you please do some research on REPCO bank FD's ?
and recently I invested an amount on 2LAC in SBH chal-achal FD for 60 days which is giving 8% interest.. very short term.. SBH is also having good FD schemes for short term.. If you have time please post an article for our viewers..
Thank you
Kishore B
Sure Kishore would do that.
Hi Suresh,
Thanks as usual.
One more for you – http://www.indiainfoline.com/Markets/News/IIFL-Public-Issue-of-Secured-Redeemable-NCDs-opens-on-September-17-2013/5776848924
Considering the past history of IIFL, I guess many would be skeptical. Would be interesting to know your take. 🙂
Karthik, I have posted article, it would be published tomorrow (13-Sep-13)
Hi
Can NRE"s also invest in this ? If yes are the interest rates and rules the same ? and if yes will the returns be taxed ?
Regards
Hi Nanmith, NRI’s cannot invest in any of the company FD’s including this. You can try IIFL Secure bonds or REC tax free bonds which are good for investments and which are open now.
Double Like !!!
Hi Suresh
Good article again. One question I had was, how do we track the FD? Do they have any online or other options to check it? If I choose the accumulation of interest, how do I check my balance?
Thanks againg for all the good articles.
Hi Krishna, Since these are not in demat form or online form, you cannot check. However I heard that they would send annual statement. Hopefully this is true.