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is ktdfc fd safe?

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Answer # 1 #

KTDFC Fixed Deposit Scheme Review

Banks and financial institutions are reducing fixed deposit interest rates. Kerala Transport Development Finance Corporation (KTDFC) FD offers good interest rates up to 6.25% and one can can get yield up to 6.98%. These FD’s are guaranteed by the Government of Kerala, hence are considered as one of the safe FD schemes. What are the features of KTDFC FD Scheme? What are the interest rates of KTDFC Fixed Deposit Scheme? Should you invest in KTDFC Fixed Deposit or avoid?

Also Read: ICICI Home Finance Fixed Deposits offer 11.39% Yield – Should you invest?

About KTDFC Limited

Kerala Transport Development Finance Corporation Limited (KTDFC) was registered under the Companies Act in 1991 and started commercial business in 1992. The Corporation is a NBFC registered under the Reserve Bank of India under the category Non Deposit-Systemically Important.

The main objects are financing of transport vehicles, workshops and machinery, financial arrangements for acquisition of transport vehicles and machinery, assist transport or other undertakings, agencies, firms, whether incorporated or not, situated within the State of Kerala, with long, medium or short terms loans for any purpose whatsoever or subscribe to their share capital, equity or preference debentures or assist in other ways within the restrictions imposed by Reserve Bank of India from time to time. In addition to its usual lending schemes to KSRTC and others, the company widened its scope of activities by undertaking BOT/BOOT projects for KSRTC and Government departments. 100% of the share capital is held by Government of Kerala.

KTDFC Fixed Deposit Scheme Details

1) KTDFC 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 based on the option chosen.

3) You can deposit a minimum of Rs 10,000 and in multiples of Rs 1,000 in this FD scheme.

4) Interest rates are ranging between 5.75% to 6% for general category.

5) Senior Citizens would get 0.25% higher interest rates. The yield works out to be up to 6.98% for a 5 year cumulative FD Scheme.

6) These interest rates are effective from 1st January, 2021.

What are various FD Schemes offered by KTDFC?

It offers below FD schemes:

1) Periodic Interest Scheme – Monthly (PIS-M):  This is non-cumulative FD scheme where the interest would be paid monthly. On the maturity, you would get your principal back.

2) Periodic Interest Scheme – Quarterly (PIS-Q): This is non-cumulative FD scheme where the interest would be paid quarterly. On the maturity, you would get your principal back.

3) Money Multiplier Scheme (MMS): This is a cumulative FD scheme where the interest would be compounded monthly and paid on maturity.

Interest Rates on KTDFC Fixed Deposits in 2021

Here are the latest interest rates which are effective from Jan, 2021 onwards. Senior Citizens would get 0.25% extra interest rates. Refer second table for that.

Who is eligible to open a KTDFC 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

How to invest in KTDFC FD Online?

Generally, all the fixed deposits these days can be opened online. However KTDFC FD Scheme online facility is not available.

How to Open KTDFC Fixed Deposit then?

Below is the step-by-step process to open FD scheme with KTDFC.

1) Download the FD application form from KTDFC website here

2) Fill the applicable form and paste the photograph. No thumb impression allowed.

3) Duly filled application form along with Crossed Cheque or DD may be forwarded to Registered office/Branch offices of the KTDFC address. UTR Number/Pay in slip to be attached as proof of deposit if the amount is already deposited in a KTDFC bank account through RTGS or NEFT or Cheque.

4) All Cheques/Demand Drafts must be crossed and made payable to Kerala Transport Development Finance Corporation Limited, payable at Thiruvananthapuram or the places where the branches of the Corporation are situated.

What documents are required to open KTDFC Fixed Deposit Scheme?

You need to submit Photo + PAN + Address proof documents. Below are the some of the address proof documents that can be submitted.

1) Aadhaar Card

2) Valid passport

3) Valid driving license

4) Voter’s ID card

5) Telephone bill

6) Bank statement

7) Electricity bill

8) Ration card

9) Letter from employer

You can refer KTDFC website for a complete list of documents.

You may like: Best Mutual Fund Schemes to beat Corona virus situation

Why to invest in this FD scheme?

Here are some positive factors.

1) KTDFC is a Kerala Government owned entity and safe to invest in their FDs.

2) You can invest in this FD scheme with a minimum of Rs 10,000 and get higher interest rates up to 6% for regular investors and up to 6.25% for Senior Citizens and get high yield up to 6.98%.

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

Why NOT to invest in this FD scheme?

Here are some negative points.

1) KTDFC FD schemes are considered as safe as these are guaranteed by the Government of Kerala. However, they have fixed a threshold limit of Rs 4,500 Crores for such guarantee. No one knows whether KTDFC is offering these FDs only to this limit or whether it is exceeding this limit. If they are exceeding the limits, the FDs accepted higher than the guaranteed value could become risk.

2) Premature withdrawal rules make it unattractive.

3) One has to invest in these FDs through manual process / offline. This is a tedious process.

Some of the FAQs about this FD Scheme

1) How can I calculate the interest amount?

You can visit KTDFC Interest Rates Page where you would know the interest rates based on specific tenure which is updated regularly.

2) What is the KTDFC Fixed Deposit Rating?

If you are thinking “is KTDFC safe for FD”, you need to know that this is 100% Kerala government owned company. There are no credit ratings available on the website. However, since it is owned by Kerala Government, one can consider this as safe FD to the extent of Rs 4,500 Crores guaranteed by them.

3) How the Interest received on these FDs is taxed?

KTDFC 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 of my FD?

One can take a premature withdrawal only after 3 months from the date of KTDFC FD or from the renewal of deposit. If you wish to break the FD between 3 to 6 months after opening FD, no interest would be paid. If you wish to break FD after 6 months of opening FD but before the maturity date, you would get 2% lower rate compared to the interest rate at which you invested earlier.

5) When the interest payment would be done for non cumulative deposits?

In case of non cumulative deposits, interest would be paid on the 1st day after closure of month or quarter based on the scheme and option chosen.

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

Yes. Individuals can submit a form 15G or 15H to KTDFC 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 2% higher than the FD interest rate on such loan.

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

No. NRI’s cannot invest in this Fixed Deposit Scheme.

9) If I am an existing customer of KTDFC, would I get any extra interest?

No. They would not get any extra FD interest.

10) What are the KTDFC 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 leave a request at http://ktdfc.kerala.gov.in/contact-us and they would contact you.

ii) You can write to them at their registered office mail ID: mail@ktdfc.com

iii) You can reach them at their registered office contact nos Ph: 0471-2327881, 882, 883.

You may like: AAA Rated Fixed Deposit schemes in 2021

Should you invest in KTDFC Fixed Deposit Schemes in 2021?

KTDFC is 100% owned by the Kerala Government. Its FDs are safe to invest to extent of threshold guaranteed by Govt of Kerala. It offers highest interest rates where yield comes up to 6.98%. While interest rates are okay, the entire process is manual and offline. If you are willing to take this pain you can invest in this FD scheme. Alternatively, you can look at TNPFC FD Scheme that is offering high interest rate upto 10.46% yield.

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Sharma Hania
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  • State Bank of India. AAA.
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Felicity Wegner
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Answer # 3 #

KTDFC accepts fixed deposits, the payment of which (Principal and Interest payable thereon) is fully guaranteed by Government of Kerala up to Rs.

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Ralf Fletcher
Urology Nursing
Answer # 4 #

The matter shot into limelight on Thursday after it became known that the company defaulted on payout to Kolkata-based Ramakrishna Mission whose deposits had matured, forcing it serve a notice on the State government. Reports in circulation suggested the Mission had sent down a legal team to Thiruvananthapuram.

The State Chief Secretary was quoted as confirming receipt of the notice addressed to Bishwanath Sinha, Additional Chief Secretary, Finance. When contacted, Suviranandaji Maharaj, General Secretary, Ramakrishna Mission, Belur Math,told businessline that he was not aware of the matter.’

But he suggested the Thiruvananthapuram office of the Mission would be in a better position to respond. In turn, President of this office said he can confirm one of the ashrams had run into an issue with KTDFC over matured deposits which both parties have resolved to settle amicably. He dismissed as baseless reports of a legal team having reached Thiruvananthapuram.

Mails sent to the Additional Chief Secretary, Finance and messages to B Ashok, Managing Director, KTDFC, have not elicited a reply till the time of going to press. A top official in the Ministry of Finance, however, admitted the NBFC is in a liquidity crisis. The government will intervene when warranted, but ‘at a time of its choice’.

Prior to doing so, it would seek to exhaust all ongoing attempts to defuse the situation. An official at KTDFC headquarters said preoccupations with financial year end rules out an immediate solution. Some form of settlement could be expected in the new financial year that begins on Friday (April 1).

Customer complaints have so far originated mostly from outside of Kerala and enquiries suggest retired employees of both private and public companies are on the list. Among them is 80-year-old Delhi resident Ramesh Singh (name changed), who chose to park his retirement benefits with KTDFC.

A former employee from the private sector, Singh found the catchphrase “maturity amount and interest fully guaranteed by Kerala Government” alluring. He is shocked to see maturity claims since December 2022 have not been honoured. He was informed “the company has no funds to repay maturity proceeds and is looking for (State) government support”.

Mails sent to the Chief Minister, Transport Minister and the CMD of KTDFC have received a standard one-liner, ‘Your complaint has been passed on for appropriate action’, followed by a deafening silence. “They don’t even have the decency to inform depositors on the fate of their money. Isn’t it a clear breach of trust?,” Singh asked.

Sources in the Transport Department said the current impasse is because of non-payment of credit extended to various entities, including over ₹700 crore to loss-making Kerala State Road Transport Corporation (KSRTC). The annual Review of Public Enterprises in Kerala, 2021-22 tabled in the State Assembly agreed, saying the net worth of KTDFC has eroded to ₹ -350.73 crore. Accumulated loss at the end of the year under review is ₹399.33 crore.

Long-term borrowings in the form of fixed deposits stood at ₹600.45 crore. Short-term borrowings from banks and FIs amounted to ₹350 crore, unchanged from the previous year. Net loss stood at ₹43.47 crore, comparably lower that previous two years. Finance costs vis a vis FIs, banks and others too had shrunk to ₹87.72 crore.

The plight of the KTDFC reflects the bleak financial position of the state whose ‘committed expenditure’ on salaries, pensions, and interest robs as much as 70 per cent of the estimated revenue receipts during 2023-24. This has limited the State’s flexibility to decide on other expenditure priorities such as capital outlay. Half of the public sector undertakings are running in loss with KSRTC, to which KTDFC has ‘bled’ loans, recording the highest at ₹1,787 crore during 2021-22 .

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Arif Shay
COOKER TENDER
Answer # 5 #

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 8.77% and one can can get yield up to 10.46%. 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 2023, 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?

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.

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% to 8.5% for general category.

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

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

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 7.25% to 8.77%, depending on the tenure. Senior Citizens would get up to 0.5% 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% to 8.5%, depending on the tenure of the FD selected. Senior Citizens would get up to 0.5% extra interest rates on specific tenure FDs.

Here are the details of interest rates for general category. Senior Citizens would get up to 0.5% extra interest rates on specific tenures, otherwise they would get only 0.25%. Refer to the respective columns.

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.

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.

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.

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

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

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 reaffirmed in April, 2021. Since it is owned by TN Government, one can consider this as safe FD though it has not explicitly indicated anywhere in the application form or on their website.

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.

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 this form 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.

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 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: customersupport@tnpowerfinance.com

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

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

TNPFC FD’s are not rated by Crisil. These are rated by ICRA which is “MA Stable”

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 10.46%. 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).  One should consider some of the negative factors like premature withdrawal guidelines + slow processing of transactions etc. indicated above. Beyond this, it is a good and safe FD scheme to invest.

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Doe bvqduqc Atif
ASSEMBLER COMPONENT
Answer # 6 #

KTDFC accepts deposits from the public with attractive interest rates through Periodic Interest Scheme-Monthly (PIPSM), Periodic Interest Scheme-Quarterly (PIPSQ) and Money Multiplier Scheme (MMS). The deposits are guaranteed by the Government of Kerala, which ensures 100% security and extra earnings.

KTDFC offers various loan products to suit the needs of every customers with low diminishing EMI rates, hassle-free procedures and premature closure options ensuring more savings to its customers.

KTDFC has successfully completed the construction of a Commercial cum Office Complex for Motor Vehicles Department at Vazhuthacaud, Thiruvananthapuram (Trans Towers) in 2006 and undertook the construction of Bus Terminal cum Shopping Complexes for KSRTC on BOT basis at Angamaly, Thiruvananthapuram, Thiruvalla and Kozhikode.

Renovation of Tagore Theatre into a modern Cultural Complex, as a State-of-the-art venue of Cultural and Entertainment Activities has also been successfully completed by KTDFC.

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Murray Kestner
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