The interest rates on fixed deposits are becoming very attractive after the increase in the repo rate of the Reserve Bank of India. Tamil Nadu Power Finance and Infrastructure Development Corporation is giving interest at the rate of 8.5 per cent to senior citizens.
Fixed deposits are becoming much more attractive after the recent hike in the repo rate by the Reserve Bank of India (RBI). Many major public and private banks have already increased the interest rates on fixed deposits, thereby allowing customers to get higher interest rates on their deposits.
Fixed deposits are considered to be the safest option of investment. Many people are opting for fixed deposits amidst high inflation and volatility in the stock market. You can invest in low risk financial instruments from banks, non-banking financial institutions and post offices.
Tamil Nadu Power Finance and Infrastructure Development Corporation Limited is one such government company, which is offering very attractive interest rates on Fixed Deposits. The company has decided to give 8.5 percent interest rate to senior citizens. The company has presently introduced two options as per the requirement of the investors. One is non-cumulative fixed deposit i.e. non-cumulative fixed deposit and the other is cumulative fixed deposit.
Non Cumulative Fixed Deposit
Investors can get monthly, quarterly and annual interest under this fixed deposit. When the fixed deposit matures, they can withdraw their investment. This fixed deposit can be made for tenures of 2, 3, 4 and 5 years. The interest rates on this are between 7.25 percent to 8 percent for non-senior citizens, depending on the tenure.
At the same time, senior citizens get interest at the rate of 8.5 percent. By the way, let us tell you that they will get an interest rate of 8.5 percent only on FDs maturing in 60 months. FDs maturing in 48 months will get 8.25 percent interest.
Cumulative fixed deposit
This is the second product of Tamil Nadu Power Finance and Infrastructure Development Corporation Limited that senior citizens can take advantage of. In this, the interest rate will be compounded quarterly, which will be paid to the investors on maturity.
The tenure of this fixed deposit is also 1, 2, 3, 4 and 5 years. The interest rate has been fixed between 7.25 percent to 8.5 percent according to the time period. People of 58 years and above can avail 8.5 per cent interest rate on 60 months fixed deposit.