Tata Motors Ltd. have recently launched a Fixed Deposit (FD) investment scheme. Through this, the company will be raising debt capital directly from public. Let’s see some of the features that make this FD scheme more advantageous than other fixed return schemes available currently:· Rate of Interest: The rate of interest varies from 10% to 11% depending upon the lock in period of the investment. The maximum rate of interest offered by the company is 11% per annum for an FD of three years lock in period. For senior citizens, an additional 0.5% will be given.
Similar to the FDs of banks, the interest will be compounded quarterly and if you choose the cumulative deposit option in the plan, the 3 year FD would give you an annual return of 12.83%. This is because interest at year quarter is automatically reinvested, thus yielding higher rate of return.
The interest rate is more than that offered by any bank.
·Current Market Scenario: Owing to regular decrease in inflation and recessionary trends, the banks have been constantly decreasing the interest rates on fixed deposits. It is a good option to invest in a fixed return plan offering good returns at the moment.
·Security of Funds: Some of the regional and co-operative banks are offering fixed deposits at somewhat similar rates of interest. But the security of money with them is always questionable, especially in the current economic circumstances. If we have to trust any company, the Tata Group is undoubtedly among the favorites. Moreover, successful vehciles like Tata Indica, Tata Safari, Tata Ace etc and anticipatory success of Tata Nano makes the funds more more secure
·Compare with other investment options: While some market linked investment plans might reap you better returns, but seeing the daily fluctuations in share market, it would not be advisable to invest huge amount in these schemes.
Returns under other fixed return schemes are lower than that of Tata Motors FD scheme.
Other Information
A minimum amount of Rs. 20,000 can be invested in the scheme. There are three options for interest payment:
1.Accumulate them and receive the full amount at maturity
2.Receive interest every quarter
3.Receive interest every month (for deposit above Rs. 1 lakh)
Brochure and investment forms are available at Tata Motors website. The forms can be deposited at designated branches of HDFC Bank Ltd, Tata Securities , Kotak Securities, JM Financial(list of branches available at Tata Motors website).
Click here to get application forms
Also Read:
Returns under other fixed return schemes are lower than that of Tata Motors FD scheme.
Other Information
A minimum amount of Rs. 20,000 can be invested in the scheme. There are three options for interest payment:
1.Accumulate them and receive the full amount at maturity
2.Receive interest every quarter
3.Receive interest every month (for deposit above Rs. 1 lakh)
Brochure and investment forms are available at Tata Motors website. The forms can be deposited at designated branches of HDFC Bank Ltd, Tata Securities , Kotak Securities, JM Financial(list of branches available at Tata Motors website).
Click here to get application forms
Also Read:
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