KTDFC – FD Scheme offers 12.91% yield – You can invest

KTDFC FD SchemeKTDFC – 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.


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

KTDFC FD Scheme-Interest chart

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?

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.

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KTDFC – FD Scheme offers 12.91% yield – You can invest

Suresh KP


  1. 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

    1. 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/

  2. According to rule72,themoney doubles in 6yrs with 12%interest rate,are there any banks ,companies offering schemes for 6years with 12% interest rates?

    1. 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.

  3. 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


    1. 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.

    1. 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.

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