Tata Motors FD: Questions

by Manshu on April 23, 2009

in Investments


Tata Motors Fixed Deposit Plan has aroused a lot of investor interest and people have been quite interested in getting more information about this FD plan.

One of the things that I had missed about the Tata Motors FD plan when I wrote about it earlier was the increased rate of interest you get, if you are a shareholder.

Additional 0.25% for Shareholders, Employees and Senior Citizens

You get an additional 0.25% if you fall under the following three categories:

  1. You are the company’s shareholder
  2. You are an employee of the company or its subsidiary
  3. You are a senior citizen. (Over 60 years old)

You just get an additional 0.25%, even if you fall under more than one category. So, if you are a 61 year old employee who happens to be a shareholder of Tata Motors — you still only get an additional 0.25%.

Since, you can’t age overnight and it’s not that easy to become a Tata Motors employee — you could buy a few Tata Motors shares; become a shareholder and increase the rate of interest by 0.25%.

What If I Break the FD?

If you invest in the Tata FD and have to break the FD or withdraw your money prematurely — the investment form says that the withdrawals will be allowed on the sole discretion of the company.

The form goes on to say that there will be a reduction in the interest rate to the extent permissible by the Companies (Acceptance of Deposits) Rules, 1975. And finally, that Tata Motors will deduct the brokerage they paid at the time of issuing the debt.

Here is what the form says:

Premature withdrawal will be permissible at the sole discretion of the Company. All such prematured refunds shall be subject to such terms, including reduction in the rate of interest as prescribed in the Companies (Acceptance of Deposits) Rules, 1975, as applicable. Further any Brokerage paid by the Company at the time of acceptance/renewal, will also be deducted on any premature repayment .

I looked up the Companies (Acceptance of Deposits) Rules, 1975, and it says that if someone breaks a fixed deposit after six months (at least) — the company issuing the fixed deposit can reduce the rate of interest by up to 1%.

So, there are three things you should remember, in case you break the fixed deposit plan before its maturity:

  1. Tata Motors holds the sole discretion to allow you to withdraw your funds.
  2. They will deduct the brokerage they had to pay for setting up the fixed deposit.
  3. They may reduce the rate of interest by up to 1%, if you have at least completed six months with the fixed deposit plan.

These were two questions that I found interesting about this scheme and was interested to find out what the form said about them. You can read the basic details about the plan in a post that I wrote earlier and can be found here.

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{ 13 comments… read them below or add one }

suresh bhagade November 23, 2009 at 12:26 AM

Can you give me example how better investment in Tata Motrs FD Plan v/s Twinkle Star FD Plan which is given 13% interest on 5.5 years paln.

So I can show my Client .

Suresh Bhagade


mamata roy December 7, 2010 at 11:39 PM

i want invest in Tata Motor FD for 3Yrs. cum . doposite plane Pl. Call me –deleted– or –deleted–


veena sawant April 19, 2011 at 9:07 PM

want to book an fd for around 1,00,000.00 pls give the details


Manshu April 20, 2011 at 11:25 AM

This FD is now closed.


J HARISH July 4, 2011 at 2:08 PM

Kindly let me know the admissible benefits other than interest on Fixed Deposits for quarterly or cumulative schemes. i am one the employees who opted for Voluntary Seperation Scheme with effect from 20th December 2006 from Videsh Sanchar Nigam Limited which is now operating as “Tatacommunications Limited”
Mobile 91 9945383327 or landline 91 80 26679818
Bangalore India
My other email id harish_lath123@yahoo.co.in


swati p bhatt July 18, 2011 at 10:12 AM

please give us the details of tata motors fd forms address,as i am interested to invest .



Manshu July 19, 2011 at 4:17 AM

Those are no longer open Swati.


kalpesh vyas February 14, 2012 at 9:34 PM

My Tata motors FDR matred in feb’12, I am intersted to reinvest the same , require details for rate of interest, Also wants to know the process for fdr withdrwal


aseem sharma July 20, 2012 at 1:54 PM

i want to make the fd of 20 lac plz send the address and phone number of consult department


Subrata Chattopadhyay July 15, 2013 at 3:22 PM

I want to invest Rs 100000. as quarterly income scheme Pls send me office adress and phone of Tata Motors where I can make investment


Manshu July 15, 2013 at 8:12 PM

This scheme is no longer open.


P.B.Panchal November 6, 2015 at 12:53 PM

I want to invest in FD schemes of TATA MOTORS.
send me branches name in Ahmedabad (Gujarat) at in Shahibaug area for investment.


Jayant Varma July 25, 2018 at 5:04 AM

I want to deposit some amount as f d pl let me know where I will get form


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