Friday, December 14, 2012

Fixed Deposits from KTDFC - 10.5%

KTDFC is a Kerala Government owned Non Banking Financial Company registered under the Reserve Bank of India. KTDFC accepts deposits from the public and these deposits are guaranteed by the Government of Kerala and ensure 100% security and extra earnings.

Deposits are accepted from the public under two Schemes, viz. Periodic Interest Payment Scheme and Money Multiplier Scheme.

Interest Rates:
1 Year:10.25% upto Rs 25 Lakhs and 10.5% above that
2 Years: 10.25% upto Rs 25 Lakhs and 10.5% above that
3 Years: 10.25% upto Rs 25 Lakhs and 10.5% above that
4 Years: 10% upto Rs 25 Lakhs and 10.25% above that
5 Years: 10% upto Rs 25 Lakhs and 10.25% above that

For senior citizens, there is an additional 0.25% extra.

For deposits under this Scheme, the minimum amount acceptable is Rs.10000/- and further in multiplies of Rs.1000/- and the interest is paid monthly or quarterly.

For deposits under this Scheme, deposits are accepted in multiples of Rs.1000/- with a minimum of Rs.10000/- and the deposits along with interest accruing periodically are paid at the end of the deposit period (MONTHLY COMPOUNDING).

In the case of refund of deposit to the depositor, refund will be made by crossed A/c Payee Cheque / Demand Draft at Company's cost.
In the case of renewal of deposit, the depositor shall return the deposit receipt duly discharged in favour of the Company together with application form duly filled in. In case the deposit is not renewed on maturity, but recalled on a subsequent date, the Company is not liable to pay interest on the deposit amount from the date of maturity. Similarly if the request for renewal is received after 30 days from the date of maturity, renewal will be considered only from the date of receipt of renewal request.

As per the directions of the Reserve Bank of India currently in force, the deposit shall not be repaid before the expiry of 3 months from the date of deposit. In case of premature withdrawal after 3 months, interest shall be paid at the following rates :-
After 3 months but before expiry of 6 months: No interest
After expiry of 6 months but before the date of maturity: 2% below the contracted rate

Application form along with Cash / Crossed Cheque / DD may be forwarded to the registered office of the Company. In case of payment by Cheques/DD, City Cheques/DD payable at Thiruvananthapuram alone will be accepted.

Interest earned by charitable trust is exempted under Income Tax Act vide Section II (5) (Vii).If the aggregate amount of interest payable to a resident depositor in any of the financial year under the schemes were to exceed Rs. 5000/- income tax at the appropriate rates as prescribed in the Finance Act as amended from time to time will be deducted as and when payment is made unless affidavit in the prescribed form is produced for each financial year separately by the depositor.

Loans will be permitted only to individuals on deposits up to 75% of the deposit amount under both the schemes, after the expiry of 3 months from the date of deposit Interest will be charged at 2% above the interest payable on such deposits. Interest on the loan will be adjusted out of interest payable on deposits under scheme I and compounded on loan on deposits under scheme II. The loan can be closed either by remitting the loan amount in one lumpsum before the maturity period of the deposit or it wiII be recovered out of the maturity value of such deposits at the time of maturity.

You can download the application form from here!

For more details, refer to the KTDFC website.


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