Kerala Transport Development Finance Corporation Limited [KTDFC] , Govt Of Kerala undertaking NBFC have recently [from 10th Oct 2012]come up with new fixed deposit scheme named as “Salute Fixed Deposits – Special FD Scheme for parents by children”.
I think probably this may be the first scheme where parents would be the beneficiaries of the deposits kept by the the children.
Important Features Of KTDFC – Salute Fixed Deposits:
- Minimum Fixed Deposit Amount – Rs. 25,000/- or in multiples of the same.
- Lock in period : Depositor can select lock in period of Either 5 years Or 10 years.But there will be facility of premature withdrawal after completion of 6 months with fine of 2%.Deposits can also withdraw in the period 3 months – 6 months without any interest.Its not possible to withdraw deposits within first 3 months.
- Deposit period will be selected by depositor and it should be greater than at least One year than lock in period.
- Interest will be accured with principle till completion of selected lock in period and then monthly interest payouts will be provided to the beneficiary till completion of deposit period.
- After completion of deposit period maturity amount will be paid back to the beneficiary.
- Deposits of KTDFC are guaranteed by Govt Of Kerala.
- If you don’t want to tax to deducted at source one can submit 15 G form .TDS will be applicable interest accrued / paid exceeds amount of Rs.5000/- in the said financial year.
Interest Rates – “KTDFC Salute Deposits”:
| Lock in Period – Yrs | Interest Rate | Annual Yield | Maturity Of 1 lakh. |
| 5 Years | 10.50% Cumulative Monthly Compounding. | 13.73% | 1,68,660 /- |
| 10 Yes | 18.45% | 2,84,463 /- |
Health Insurance Facility :
There will be optional health insurance facility in association with Oriental Insurance.This is not free insurance but with a nominal premium.
- Health insurance coverage can be opted until age of 69 Years only.
- Health insurance coverage will be at following rates:
| Annual Premum | Coverage |
| Rs.300/- | 30000/- for one person |
| Rs.450/- | Rs.30,000/- for two persons [Floating basis] |
| Rs.600/- | Rs.30,000/- for each of two beneficiary |
Overall summary of benefits:
- Good Interest rate at rate of 10.50% compounded monthly basis.
- Benefit of monthly interest payouts to beneficiary in between period of Lock in & term of deposit.Maturity amount on completion of deposit period.
- Health insurance coverage at nominal cost.
- If the earning head dies in accident,compensation of Rs.25,000/- will be available under this policy.
- Please note: KTDFC have reserved rights to change interest rates under the conditions of severe volatility.In such case depositors will have option to take back deposits with accumulated interest.
Download KTDFC Salute deposit form
I must say that this is a really nice and heart touching scheme. Parents spend their whole life doing things for the children so it is schemes like this which help the children to give them something in return.