10.09% Tamil Nadu Power Finance FD 2024 – Interest Rates and Review

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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 8.25% and one can can get yield up to 10.09%. These FD’s are considered as safe as the entity is owned by Government of Tamilnadu. In this article, we would provide Tamilnadu Power Finance FD Scheme details of 2024, Interest rates and also review any negative factors in this Fixed Deposit Scheme.

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

About 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. One should note that these FDs are not specifically indicated as guaranteed by TN Government anywhere in the website or in the application form.

Tamil-Nadu-Power-Finance-Fixed-Deposit-Scheme-Features-Issue-details-and-Interest-Rates

Tamil Nadu Power Finance FD 2024 – Scheme Details

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 50,000 and in multiples of Rs 1,000 in this FD scheme.

4) TN Power Finance Interest rates are ranging between 7.6% to 8% for general category.

5) Senior Citizens would get upto 0.25% higher interest rates.

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

What options available in Tamil Nadu Power Finance FD?

It offers two FD options:

1) Non Cumulative  Option:  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 2 years, 3 years, 4 years and 5 year tenure. Interest Rates are ranging between 7.6% to 8.24%, depending on the tenure. Senior Citizens would get up to 0.25% extra interest rate on specific tenures.

2) Cumulative Interest Option: 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%, depending on the tenure of the FD selected. Senior Citizens would get up to 0.25% extra interest rates on specific tenure FDs.

What are Tamilnadu Power Finance interest rates 2024?

Here are the details of interest rates for general category. Senior Citizens would get up to 0.25% extra interest rates on specific tenures. Refer to the respective columns.

A) Interest rates on Non cumulative option – General Category + Senior Citizens

TNPFC FD Interest Rates 2024 - Non-Cumulative Deposit

B) Interest rates on Cumulative option – General Category + Senior Citizens

TNPFC FD Interest Rates 2024 - Cumulative Deposit

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 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 in 2024?

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. One should note that there is no info about TN Govt guaranteeing these FDs on either their website or in application form.

2) You can invest in this FD scheme with a minimum of Rs 50,000 and get higher interest rates up to 8% for regular investors and up to 8.77% for Senior Citizens and get high yield up to 10.46%.

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. You could see delay in the entire process of opening or processing or closures

3) The FD ratings are reduced to [ICRA]BBB- (Stable); outstanding by ICRA Ratings in Dec-2023.

Some of the FAQs about TNPFC Fixed Deposits

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.

  • Regular Interest Payment Scheme FD calculator
  • Cumulative Interest Payment Scheme FD calculator

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” earlier in Apr-21, however these are now reduced to BBB-Stable in Dec-23. I always educate on this blog that investors should invest in AAA rated bonds or FDs. Anything below this is riskier.

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.

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.

When interest is paid for cumulative deposits / 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.

Tamilnadu Power Finance Form 15H online submission possible?

Individuals can submit a form 15G or 15H to TNPFC to not to deduct TDS on their FD interest.

However, Form 15H online submission not available. One need to download the form from their website and share them the signed copy.

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.

Ho depositors can do TNPFC Login?

Depositors can visit TNPFC Login link and start investing in their FD schemes.

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: RBI floating rate savings bonds offers 7.15% interest

As an existing customer of Tamil Nadu Power Finance, would I get any extra interest?

No. They would not get any extra FD interest.

What is TNPFC contact number?

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: customersupport@tnpowerfinance.com

ii) You can reach them at their registered office contact nos Ph: 044-46312345 and whatsapp to 044-66626705.

How to do Tamil Nadu Power Finance Fixed Deposit Renewal Online?

You can login to TNPFC website, select your FD and renew it online.

What is Tamilnadu Power Finance Crisil Rating?

TNPFC FD’s are not rated by Crisil. These are rated by ICRA earlier as “MA Stable” in Apr-21, however reduced to BBB-Stable in Dec-2023.

Can NRI’s invest in TNPFC FD Scheme?

Yes. NRI’s can invest in Tamilnadu Power Finance Corporation FD Scheme. However, the maturity amount cannot be repatriated outside India.

Is it safe to invest in Tamil Nadu Power Finance FD in 2024?

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 9.7% for regular investors and 10% for Senior Citizens. Even TN Power Finance FD can be opened online which is easier than the manual process. One aspect is that it is no where mentioned on their website / application form that these FDs are guaranteed by TN Govt (while the entity is owned by TN Govt). Also these FD rating are reduced to BBB-Stable which are riskier. One should consider some of the negative factors like premature withdrawal guidelines + slow processing of transactions etc. indicated above.

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Suresh KP
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67 comments

  1. Sir @Suresh K P,
    I have read the terms and conditions of this FD entirely but no where it is promised that the deposits are guaranteed by the state government.

    Also, it is mentioned that the deposits are not insured.
    But you have said that since it is a wholly owned govt entity guarantee is there. Can someone who can clarify this doubt pls answer?

    1. Hello Ram, It is no where indicated in the website / application form that such FD’s are guaranteed by TN Govt (like it is specifically indicated in KTDFC FDs). TNPFC is wholly owned entity of TN Govt, hence it is indicated as safe FD. Like you many FD investors would get this doubt, hence I have specifically mentioned this now in the article itself as many of you might not go thru the comments.

  2. Hi ! I invested good amount in this TNPFC and I would say that the process is a bit slow, even on some fd’s I made, it took 3-4 days to confirm the amount received and then it generates a fd.
    But in the generated fd, in which bank account will it credit interest is not mentioned although I had provided the details during generating the fd. If anyone have any clue on how to confirm that in which account will it credit interest, do tell.

  3. Can we get a tax exemption under 80C for the FD like we get for FD from any other bank with minimum lock in period?

  4. I suspect this to be a scam. Kindly comment. I’ve invested in this FD. Bank is not updated in their system still. They’ve not paid monthly interest first installment also.
    @Suresh KP, kindly comment how do I contact them. Their WhatsApp Support definitely seems to be absolutely lousy. Nobody responds on the phone call. I’ve not received any response to a mail sent by me.

    Others kindly comment if my doubt is correct or if you’re confident of seeing this company functioning properly. Thank you

    1. Hello Avka, This is government entity, hence cannot be scam. Yes like I indicated earlier, they are very slow. You need to reach them on the contact nos provided by them / email IDs given and there is no other option

  6. Sir
    I have sent Rs.4,00,000 throug NEFT for 5 years cips on 29.05.
    2020.The amount is debited from my account .But i didnot receive any certificate till date.Kindly send me certificate

          1. IS IT 15 G / 15 H ONLINE WE CAN APPLY SINCE BANK HAVE SUCH OPTION EVERY TIME PEOPLE CAN NOT VISIT THE TNPFC OFFICE . KINDLY POST IS TI TNPFC HAS SUCH OPTION OTHER THAN OPEN AND CLOSE FD’S

    2. Hi

      Can I know the applicable TDS percentage for the deposits made from NRO account. I could see in the payment receipt as 30.9%, if that is the case, I don’t think so as this would be beneficial.

  8. Dear sirs I have paid Rs 6 lakhs on-line for new fixed deposit through Andhra bank RTGS ref (Admin removed personal info from here) on 1/6/20.Pl confirm my application and payment to issue receipt and bond early. Ph << Admin removed personal info from here>>

  9. Hi,
    suresh,
    I am completing 58 years this month ( May’20) Wheather
    i can eligible for senior citizen or regular scheme.

    pl.reply

  10. Sir
    I have deposited 10 lakhs as two seperate deposits through post which got created on May 11.
    I received the deposit receipt/fd receipt on 29th May.

    1.Can someone share the contact numbers(working ones) and email(working ones)?
    2.Its pretty late that i am asking,but I would like to know to since it is not insured by DICGC,What is the relative safety of the instrument as it is govt based?
    Are we technically insured as it is Govt based?

    Thanks
    SaiRam

  11. What is the minimum age limit for senior citizen?
    Now I am 59 years, whether I can get the benefits of the senior citizen?

  12. sir
    good morning
    This is anandan , what is the maximum amount deposit for monthly or quarterly interest scheme,best scheme and branches all over India pl

  14. Hi Suresh,

    I had created FD with TNPFC and payment has been processed for 1 lakh and while doing transaction FD was not created in TNPFC. I did not get acknowledgement receipt or email or sms. So I sent them email and no response yet.I called them and asked them to confirm the amount received on your side. They did not ask me what’s the issue and what’s customer id. Simple answer from representative was “wait for a week you will get the FD created”. So pathetic service. I called them 13 times and 13th time got connected to customer service. Any of you know any other ways of reach them like myself(NRI) jus to confirm the amount Is received on their side?

    1. Prabu, Looks there is no other way except to wait. Like i indicated this is govt organization and the services could be little delayed. Pls post your comment once you get resolution within 1 week

  15. I am returning this month,I want to invest in monthly or quarterly intrest scheme, what is the maximum amount I can deposit pl

    1. sir
      I am retiring this month , I need monthly or quarterly interest scheme what is the maximum amount I can deposit pl

  16. Sir

    TNPFDC is one of the most unprofessional organisations one can come cross.
    You cannot reach them on phone or email or through website or App. It is the most frustrating experience one gets. The emails get returned as no response from their server.
    I would give them minus rating irrespective of the higher interest offered.
    It is a typical government organisation of Tamil Nadu and I am afraid if one can expect any better in terms of service.
    It is not worth the trouble.

    1. Hello Ranganathan, Sorry to hear your experiences. This could be due to covid-19 situation or is this before Mar-2020 situation? This would help other investors to know such pain points before they invest.

      1. Hi Suresh,

        I saw 80% of reviews in google mentioned same that Tamilnadu Power Finance Corporation Staff especially manager is very rude and main issue is they never respond to the queries via email and and call’s.

        These reviews are 7 to 8 months back, and not in this covid/lock down situation. So looks like their service is very poor irrespective of the situation.

        and also many people complained about interest not also credited and no response for such critical queries.

        Just wanted to share these points as per the reviews mentioned in google from many customers.

        1. Hi Dilip, Thanks for sharing the experiences. Like i said earlier this is Govt company, hence there could be delays. That is the risk one has to take if they want to invest in such companies

  17. Hi Suresh,

    Can you please confirm if this Tamilnadu Power Finance Corporation FD Scheme is covered under “DICGC insurance provided by RBI” ??

    Thanks,
    Dilip

    1. Currently, as per the RBI guidelines, deposits with all commercial banks and cooperative banks are insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC). TNPFC is NBFC registered under RBI (not bank) and does not fall under the purview of DICG

  18. Hi Suresh,

    I have applied FD through my mobile APP. After all data inputs I got a download of bank details to pay for my FD. I separately transferred to the Beneficiary of TNPFCL the amount. How do I know my FD has taken place since there is no link between amount transferred and the FD updated in APP.

    2. Hi Deva please tell the TNPFC bank details you sent …I did online transaction from NRO account and it got failed after debiting the amount. How do I contact them by phone?

  19. 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

  20. 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?

      1. 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

  22. 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

    1. Good to hear that you liked it and executed it. If you liked our article, share this link on your facebook which might be useful to your friends too.

      1. Hello sir I too opened FD but I don’t know how I get paid? I mean how they payout interests?

        1. Hello Priya, Have you downloaded their google App from play store. I understand with that you can close the FD with few clicks and the amount would be in your bank account. Pls check and update in this comment so that others also would benefit with the process. If it is not possible, you need to login to the website and check for closure option

          1. Hello sir I have their app I invested but I can’t update my bank details so how will they return back the amount?

  24. Pls send address of Ahmedabad office,where we can do it easily or authorised Agent.

  26. Neatly explained . Very good option for many investors seeking for safe avenue for investment with decent returns.

    1. Hello Renganathan, We have already provided the link in section which says “How to Open or apply in Tamil Nadu Power Finance Fixed Deposit Online?”. You would have missed that.

      Regd your query on whatsapp on positives and negatives from your friend. We already highlighted majority of them except about TNPFC lending to only one organization and their capital adequacy ratio is 7.2% against 10%. Since it is under TN Govt, we thought, going into deep dive into their business is not required unless you are investing in their share capital where the share price would fluctuate based on how they are doing the business. If the customer is defaulting to TNPFC, TNPFC cannot default to FD customers as it is under Govt of TN. We have not seen any instances in India where Govt subsidiary company itself is defaulting to its customers as per my knowledge. The maximum risk i feel there could be delay in payment of interest or delay in repayment capital if such instances happen.

  28. Hello, please post such more posts related FD offered by govt entities. I see you post for entities only related to south Indian states. Please post for Gujarat govt entities if such schemes available. Thanks!

  29. Hi Suresh,
    Very good article on a investment options that are not known to many people.
    Can you also write share your opinion on FDs with Small Finance Banks like Fincare Small Finance Bank & Utkarsh Small Finance Banks? They also offer 9% interest with quarterly compounding and I think it is covered by DICGC insurance provided by RBI bank.
    Do you think it is safe to invest up to Rs 5 lakhs on these FDs with small finance banks listed above?
    They also provide door step service for FDs.
    Thanks & Regards,
    Jalpesh Patel

    1. Hello jalpesh, At this juncture, I would advice you to stay back as banks NPAs would increase due to covid-19 pandemic and investing in small banks would be little riskier too. I would write article in coming days putting pros and cons along with latest FD rates. You can go thru them and take a call

      1. Thanks Suresh.
        Will await your article with pros & cons along with latest FD rates.
        Kindly also share your opinion on DICGC insurance coverage provided by RBI for FDs with all banks incl. small finance banks.

  30. Very good and safe investment and easy to apply with good interest rate thanks sir pl provide some more safe government fd with online apply

    1. Hello Sarabdeep, Every week, I am analysing and providing atleast one FD scheme which are either high rated one or Govt one. You can subscribe to our artilces through email and these would be delivered to your mail box

  31. Very good idea for investment safe and good interest rate pl post more like it online operated

    1. Thank you Sarabdeep. If you liked our article, please share on your FB or Twitter which might be useful to your friends too

  32. Thank you Suresh.
    Tamilnadu Transport Development Finance Corporation also offering the same rate of interest.

    1. Hello Mohanan, Sure, would do that. If you liked our article, share this on your facebook which might be useful to your friends too

  33. Good morning. If possible, please review Tamil Nadu Transport Development Corporation FD Schemes also.

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