Fixed Deposit Rates
In this article, I will enlighten you on best-fixed deposit rates in Kenya. A fixed deposit is the most popular way of saving money. It is a sure investment as well as offers good returns.
In particular deposit accounts such as fixed deposits which are provided by most South African banks are an investment product where customer funds are illiquid for a specific period of time with a given fixed interest rate of return to compensate. Fixed Deposit for clients aged 55 years and older Nominal Rates for clients aged 55 and above. Published at 2020-12-04 Period R10 000-R249 999. Fixed Deposit: Nominal Rates Published at 2021-03-01 Period R10 000-R249 999.99 R250 000-R499 999.99 R500 000-R999 999.99 R1 000 000+ 1. The calculator will provide the maturity for deposits up to ₹1,99,99,999. For interest rates on deposits of ₹2 crore and above, please Click here; Senior citizen rates are not applicable to NRE and NRO deposits; For NRO Fixed Deposits, the maturity amount indicated is subject to TDS as applicable from time to time.
While opening a fixed deposit account, you will need to put a fixed tenure at an agreed rate of interest. At the end of this tenure, you will receive the amount you have invested plus compound interest.
With a fixed deposit account, you are guaranteed of positive returns. These returns do not fluctuate over time as opposed to market-led investments.
Even though the fixed deposit rate falls, you will continue to receive the interest decided when you opened the account.
The return on investment on fixed deposit accounts depends on the fixed deposit interest rate and the type of deposit you are investing.
You can opt for a monthly or quarterly pay-out of interest or the reinvestment option, which will give you the benefit of compounding.
While fixed deposit accounts are fixed for an agreed tenure/period, you can take out a loan against it in the form of an overdraft.
The benefit of this kind of loan is that your investment continues to earn interest and you do not have to withdraw your money prematurely.
Best Fixed Deposit Rates in Kenya
Fixed Deposit Rates Rsa
Here are the best Fixed Deposit Rates in Kenya in 2020
1. KCB Bank
Fixed Deposit Rates
KCB offers a competitive fixed deposit rate for local and foreign currencies.
The bank, however, has a condition, money must remain in the fixed deposit rate account for the agreed period.
They offer an interest rate of up to 6% p.a. on your savings
2. I&M Bank
Fixed deposit accounts in I&M Bank are opened for fixed contracted periods, which range from one month to one year.
The bank boasts of having attractive rates, thus providing customers with long term savings growth opportunities.
Fixed deposit accounts can be opened in the following currencies,
- Kenya Shillings
- US Dollars
- Euro
- GB Pounds
- South African Rand
In I&M Bank, the minimum you are allowed to deposit for your fixed deposit account is Ksh. 50,000
3. CBA Bank
CBA bank fixed deposit account offers flexible investment periods with interest that is paid upon maturity or at predetermined times of the year.
In CBA, you have the luxury of investing in both local or foreign currency.
You require the minimum of Ksh 100,000 / USD 10,000 as the deposit amount in CBA.
4. Stanbic Bank
Interest rates at Stanbic bank are fixed during the investment period and funds available on maturity.
There is no monthly fee charged to this account, and interest is also calculated upon maturity.
5. Standard Chartered Bank
The fixed deposit account is available to clients of this bank in Kenya Shillings, US Dollar, Pound Sterling, Euro, Japanese Yen, Australian Dollar and South Africa Rand.
What is attractive about this bank is that you can negotiate for a fixed deposit rate that suits you.
You can access personal loans and overdrafts equivalent to 80% of the balance in the Fixed Deposit Account.
You require a minimum of deposit of Ksh 100,000
5. Equity Bank
Equity Bank fixed deposit account provides you with a medium for investment opportunities for individual savers, businesses and organisations.
The minimum amount you can invest in this bank is Ksh 20,000 with a minimum investment period of one month.
The bank allows you to negotiate the fixed deposit interest rate that best suits you.
One of the benefits of the fixed deposit rate accounts in this bank is that you can withdraw prematurely.
It also allows direct borrowing of up to 80%.
6. Cooperative Bank
The investment period offered by Coop Bank is one to twelve months.
The clients are then paid a competitive rate for the period the money is held in the account.
7. DTB Bank
The minimum deposit allowed at this bank is Ksh 100,000, and it offers a competitive fixed deposit rate.
You can also deposit using foreign currency–> USD 10,000 or GBP 10,000
8. Consolidated Bank
This facility is available to both individuals and business clients.
You require a minimum account opening balance of Ksh 50,000.
You can invest at this bank for a period one month, 2, 3, 6, 9 or 12 months or on call.
The account holder can get a loan and overdraft using the deposit account.
Fixed Deposit Rates In Ghana
More about the fixed deposit rates in Kenya
- The interest rate is fixed and guaranteed for the term of the investment, so you don`t have to worry about declining interest rates.
- Depending on what bank you settle on, interest payment options are flexible, allowing interest to be paid monthly, quarterly, half-yearly, annually or upon maturity.
- Some banks will enable you to the fixed deposit accounts as security against a loan or overdraft.
- You have the choice of changing your investment period, inform the bank before the date of maturity.
- Some banks offer a free advice slip in the mail upon maturity or on request, also enquire about this from your respective bank.
Tamil Nadu Power Finance (TNPFC) Fixed Deposit Scheme 2021 Review
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 2021, Interest rates and also indicate any negative factors in this Fixed Deposit Scheme.
Also Read: KTDFC Fixed Deposits offer 9.8% Yield – Is it safe to invest?
About Tamil Nadu Power Finance and Infrastructure Development Corporation Limited (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 Details in 2020
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
What are Tamil Nadu Power Finance FD Schemes available?
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.
What are Tamil Nadu Power Finance FD interest rates in 2021?
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.
A) Interest rates on Non cumulative option – General Category + Senior Citizens
B) Interest rates on Cumulative option – General Category + Senior Citizens
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 or apply in 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?
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
Some of the FAQs about TNPFC Fixed Deposits
1) 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
2) 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”. The rating is valid up to August 31, 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.
3) 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.
4) 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.
5) 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.
6) Can we submit Form-15G or Form-15H?
Yes. Individuals can submit a form 15G or 15H to Tamil Nadu Power Finance 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 1% higher than the FD interest rate on such loan. One can avail such loan only for twice during the FD tenure.
8) 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
9) As an existing customer of Tamil Nadu Power Finance, would I get any extra interest?
No. They would not get any extra FD interest.
10) 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.
Should you invest in Tamil Nadu Power Finance Fixed Deposit Schemes in 2021?
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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