Tata Motors Fixed Deposit Plan

by Manshu on April 6, 2009

in Investments

tata-nano2

Tata Motors recently announced its Fixed Deposit plan, which is open for subscription to Resident Indians, NRIs, HUFs and Registered Societies, among others.

The fixed deposit plan has generated quite a bit of excitement, as it gives a yield of 12.83% on its 3 year — Cumulative Deposit Plan. Remember, this is the yield and not the interest rate. The interest rate remains 11%, which is still pretty high for a fixed deposit.

I think the frenzy generated by the launch of Tata Nano — the cheapest car in the world has easily over-shadowed the credit downgrade of Tata Motors to B+ by S&P (second one since last December).

From FT:

“S&P cited deteriorating cashflow stemming from Tata’s $2.3bn acquisition last year of Ford’s Jaguar and Land Rover marques as among the reasons for the downgrade – the second by S&P since December.”

Tata Sons is the parent company of Tata Motors and is one of the oldest, biggest and most reputed Indian conglomerates. So it is difficult for most Indians to even consider the idea that Tata Motors will default on its debt — S&P or no S&P, and of course the recent crisis where large banks and insurers are stuck holding toxic / legacy — AAA paper — has raised a lot of questions on the credit rating agencies themselves.

Tata Motors Fixed Deposit Plan Schemes

Here are the two schemes that an investor can choose from:

Scheme A

Quarterly Income Plan

tata-motors-fixed-deposit-scheme-a

Scheme B

Cumulative Deposit Plan

tata-motors-fixed-deposit-scheme-b

Tata Motors Fixed Deposit Plan – For NRIs

NRIs can invest in the Fixed Deposit Plan if they deposit the amount from their NRO Account and this amount doesn’t represent an inward transfer from a NRE / FCNR (B) account. Interest will be deposited in this NRO Account and NRIs need to submit their Indian address while making the application.

Tax Deduction at Source

Tax will be deducted on source from the interest of this Fixed Deposit Plan according to the provisions of the Income Tax Act 1961 for residents and NRIs.

For NRIs — the tax will be deducted at source, as the current provisions of Income Tax Act 1961 doesn not allow interest exemption on interest earned from deposits with companies.

Subscription to Tata Motors Fixed Deposit Plan

You can subscribe to this plan through your broker.  ICICI Direct has a link to it where you can subscribe to it online. If your broker doesn’t have the facility to subscribe to this plan — then you can also submit the application form at select bank branches.

Tata Motors Contact Page

This site is not related to the Tata Motors FD in any way, and if you applied for the FD and haven’t received any acknowledgment, please go to the Tata Motors page for investors.

Link for Tata Motors Investors Page

On this page, there is a phone number that you can call, and an email address that you can use to write to them about your concerns. Please use those resources to get an answer to your question.

Image Source: Tata Nano Gallery

Disclosure: I have not applied to this fixed deposit plan at the time of writing.

This site has regular features about IPOs, FDs and other investment ideas, if you would like to get that content by email, please click here.

Update: Tata Motors Investor Relations link included at the end of the page.

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Hardik N.Ganatra November 16, 2009 at 3:21 am

I want to invest in TATA MOTORS FIXED DEPOSIT SCHEME,URGENTLY,
pls call me on :9924078784.

POONAM SHARMA November 17, 2009 at 10:34 pm

Hi,

I have already invest into TATA MOTOR FD Scheme…GOOD opportunity…
Must invest in it…

Mahesh Kumar November 19, 2009 at 5:56 am

I want to invest in TATA MOTORS FD scheme

suggest me

naresh kumar nayak December 2, 2009 at 6:19 am

I want to invest in TATA MOTORS FIXED DEPOSIT SCHEME
pls call me on :9509836639

MP Shukla November 20, 2009 at 5:14 am

Myself and my wife Srojini Shukla have already subscribed but we have not received any intimatation although one month has passed. Tata motors must send me the intimation immediately.

Binod Kumar Prasad November 21, 2009 at 8:41 pm

Dear Sir,

Please guid the invest process

REgards,,,,,,,,,,,,,,Binod
9370717616

Manoj Goswami November 26, 2009 at 10:47 pm

I want to invest in TATA MOTORS FIXED DEPOSIT SCHEME,
call me on : 09319499860 Agra Uttar Pradesh

Avtar Singh November 30, 2009 at 3:56 am

I wish to invest in tata motors .
Pl call me on 924607022

C.R.SONPETHKAR November 30, 2009 at 11:31 pm

I WANT TO INVEST IN FD CUM SCHEME B.
PL ADVISE ME.
CONTACT NO 9371810433
E MAIL crs2003_in@yahoo.co.in

N Krishnan December 1, 2009 at 3:05 am

Yes – I want to do FDs in Tata Motors.

Can you send me the details of rate of interest etc. and the schemes to my above mail id. so as to make investment.

Also send me the forms and where the same have to be submitted with address and telephone numbers etc.

padmanabhan k December 2, 2009 at 7:48 pm

dear mr krishnan thnx for your interest
would appreciate if you could provide with you mail id
or u can send a test mail to my id apsfinserv@gmail.com.
regards padmanabhan k 9821055617

N Krishnan December 1, 2009 at 3:07 am

going to be the first time invester in tata motors FD.

Avtar Singh December 1, 2009 at 9:34 pm

Pl send me detail of F.D. Rates , New application form & address where i have to submitt the same.

pushpak December 2, 2009 at 12:09 pm

I WANT TO INVEST IN FD CUM SCHEME B.
PL ADVISE ME.
CONTACT NO 9990903821

v.karuppaiya December 2, 2009 at 8:50 pm

sir,
i am interested to invest in tata motors @11% rate , monthly income plan, pl advice me whom and where to contact.
i am in salem/ tn /636007.
my cell 9944437212.
urgent please.

RASESH DALAL December 6, 2009 at 12:26 am

I WOULD LIKE A FORM OF TATa MOTORS FIX DEPOSIT ON URGENT BASIS. WAITING FOR THE FORM ON MY EMAIL ADDRESS THAT IS rsshdalal@gmail.com

Ranjit kumar singh December 7, 2009 at 9:09 pm

i am interested to invest in tata motors @11% rate, monthly income plan,pl advice me whom and where to contact

i am in ranjit kumar singh
09242603110

Gautam Rastogi December 11, 2009 at 5:27 am

Send me a Tata Motors Fixed deposit form at the earliest

padmanabhan k iyer December 14, 2009 at 6:20 am

dear mrd contact numer & gautam rastogi
first of let me thank you for your interest in savings

kindly provide with your mail id,,will give further details

provide with your contact number and address,,

thnx nregards

padmanabhan k iyer
09821055617

BAIDYA NATH DUTTA December 12, 2009 at 7:21 pm

i want to invest in tata motors fixed deposit pl send current rate of interest in three years blocks. u can also contact me 09984494002

SUDARSHAN AGARWAL December 14, 2009 at 3:54 am

i want to invest in tata motors fixed deposit pl send current rate of interest in three years blocks. u can also contact me 09324580117/9860109942/09960713545.approx investment 2.5 lac

Ratish Chaubey December 17, 2009 at 8:43 am

Dear Sir

I want to invest in tata co.
Please call me on 9904202591 or provide your contact no urgentlly

Ratish
Hindalco Silvassa

padmanabhan k December 17, 2009 at 8:42 pm

dear mr.ratish gd mrng

kindly provide with your mail id will give you details
of the plan

it wud be a great endeavour to provide you with my services

also what is amount you plan to invest

thnx n regards

padmanabhan k iyer
09821055617
apsfinser@gmail.com

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