The Tamil Nadu power finance corporation is an organization completely owned by the government of Tamil Nadu. It is registered with the Reserve Bank of India as a Non-Banking Finance company. It gathers money through various deposits plan. It offers financial help to power and infrastructure ventures and grants money to Tamil Nadu Generation and Distribution Corporation Limited.
The finance corporation has been working in profit since the beginning. It affirmed dividends at the rate of thirty percent after tax for the fiscal year 2017-18. Their deposit plans are following the Reserve Bank of India’s guidelines.
One thing that needs to be focused on is that these fixed deposits schemes are not explicitly indicated as surety by the government of the state of Tamil Nadu and are not said to be mentioned on the website or in the application form.
Although being an entity completely owned by the Tamil Nadu government makes the fixed deposit schemes safe. They offer interest rates as high as 10.46 percent. The TN power finance FD can be started online that is easier than the traditional process of visit the point of the process. There are a few factors like the early withdrawal principle, the slow dispensation of transactions. It provides two fixed deposits choices
- Non-Cumulative Choice
The non-cumulative fixed deposit is where the interest is paid every month, every fourth month, or yearly. When it matures, the money invested by you will be earned back. These fixed deposits are available for 24 months, 36 months, 48 months, and 60-month time limits. The interest rate could be between 7 percent to 8.7 percent depending on the tenure. People above the age of sixty get a half percent extra interest rate on those tenures.
- Cumulative Interest Choice
The cumulative interest choice fixed deposit plan where the interest would be compounded and paid after the scheme matures. The period of these fixed deposits is 12 months, 24 months, 36 months, 48 months, and 60 months. Interest rates range between 7 percent to 8.5 percent, depending on the period of the fixed deposit chosen by you. People above the age of sixty get an extra 0.5 percent on a specific period.
The people who are eligible to open the fixed deposits here are residents of the state, Hindu families, people who work for trust, government institutions, a private institution, societies. Nonresident Indians can also open this fixed deposit scheme with a few terms and conditions.
These days all the fixed deposits can be opened online but the government institutions fixed deposits plans are opened manually. Yet, Tamil Nadu Power Finance fixed deposit plans online service is available all the time.
You can also open Tamil Nadu Power and Finance Corporation fixed deposits offline by submitting the vital documents to the nearest offices. You can also check the official website for more information.
Documents required for opening Tamil Nadu Power Finance Fixed Deposit Scheme
You need to submit an Aadhaar Card to open Tamil Nadu Power Finance Fixed Deposit. 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 that is passport, voter identification card, driving license, ration card, telephone bill of the recent months, bank Account Statement of a bank.
If the address given in the mentioned documents is different from your current address, a photocopy of any one of the mentioned documents should be submitted for residential address proof.
Advantages of investing in Tamil Nadu Power Finance Corporation Fixed Deposits
- It is safe to invest in Tamil Nadu Power Finance Corporation Fixed Deposits as they are owned by the state government of Tamil Nadu. Although they cannot be held responsible for a mishap in the market crash and they don’t guarantee it in any way.
- In this fixed deposit plan, you can invest as little as fifty thousand rupees and get a good Tamil Nadu power finance FD rate of interest of almost 8 percent for the usual investors and up to 8.77 percent for people above the age of sixty and get a higher profit of 10.46 percent.
- One gets to choose from many fixed deposit schemes in cumulative fixed deposits, you can get interested in your fixed deposit every month, every three to four months, or once a year.
Some minor disadvantages of investing in Nadu Power Finance Corporation Fixed Deposits
- You cannot withdraw any money from the fixed deposits before it matures
- The fixed deposits opening and closing will be according to the state government’s timing. It won’t take place the same way it does in public sector banks or private banks. The entire process of opening and closing an account will take a lot of time
Frequently Asked Questions (FAQs)
#1 Is there any kind of taxation on the fixed deposits?
The Tamil Nadu Power Finance Corporation taxes the same way as any other financial institute. It would deduct on interest on five thousand rupees a year. However, one needs to pay income tax on the complete interest paid to you.
#2 Can someone take a premature withdrawal from a fixed deposit?
Yes, one can take a premature withdrawal but you will need to inform the institute 15 days ahead of the withdrawal. You can make a withdrawal only after three months to six months where no interest would be paid.
#3 When will the interest be paid?
The interest on non-cumulative deposit will be paid on the last day of the month or the quarter of the year.
#4 Can Non-Resident Indians invest in this fixed deposit?
The deposits will be accepted under the income tax act of 1961. These deposits are accepted for a maximum time of three years. The money deposited for the fixed deposit should be taken out from their NRE account and then transferred to the NRO account. The money cannot be sent outside the country for any kind of payment. Only after maturity it is allowed.
So, Now you know the advantage, disadvantage and all other information about tamilnadu power finance corporation fixed deposit rates. Hope this helps you to decide make good investment.