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
Scheme B
Cumulative Deposit Plan
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.
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Update: Tata Motors Investor Relations link included at the end of the page.
Sudha gupta did not recd FD of 50000=00 .Cheque was of BOI INDORE
So far I have not recd my FD inspite of more than three weeks which was of 50000=00 cheque was of PNB indore,PL let me know the status.
I WANT TO INVEST 2,00,000 IN YOUR F.D SCHEME FOR FIVE YEARS, PLEASE TELL ME THE BEST RATE OF INTREST YOU CAN GIVE .THANKYOU
dear mr Ruchin
pls find below the rates
my area of specialization is to provide my clients best Financial solutions
based on thier Future Financial goals
hope we could get together and understand more
regards
Tata Motors Ltd. ( From 26th Aug 09 ) 20000 8% for 24 months 8.75 36 months Qtrly/cum
Senior Citizen/ Shareholder – 0.25 % p a extra Minimum Amt 1 Lakh & above
fyi
padmanabhan k iyer
09821055617
i wish to know whether the F.D. scheme is still on from tata motors ( 22/9/09) & also whether a minor w/o a demat a/c can apply or not?
could you tell me the tata motor’s current cumulative plan interest rates…..
Tata Motors Ltd. ( From 26th Aug 09 ) 20000 8% for 24 months 8.75 36 months Qtrly/cum
Senior Citizen/ Shareholder – 0.25 % p a extra Minimum Amt 1 Lakh & above
fyi
padmanabhan k iyer
09821055617
I want to invest fixed depositof Rs.2 lakh for 3 years.How much interest I will get per month? For Senior Citizen how much?
hi lakshmi
the new rates are
Period Int rates
2yrs 8%
3yrs 8.75%
1) Min amt – RS 20000/- & in multiples of Rs 10000/-& For Monthly Int – Min Amt- RS 1 lac.
2) 0.25 % p. a. additional int for Senior Citizen -6o yrs
fyi pls
you can call me at 09821055617
padmanabhan k iyer
FSS (Financial Service Specialist)/LUTCF / AMFI/CIIP/NCFM
could you plz inform me about the current status of rate of interest for tata motors for payment of monthly & quarterly and any other plans in detail waiting for reply…
the new rates are
Period Int rates
2yrs 8%
3yrs 8.75%
1) Min amt – RS 20000/- & in multiples of Rs 10000/-& For Monthly Int – Min Amt- RS 1 lac.
2) 0.25 % p. a. additional int for Senior Citizen -6o yrs
fyi pls
you can call me at 09821055617
padmanabhan k iyer
FSS (Financial Service Specialist)/LUTCF / AMFI/CIIP/NCFM
@ padmanabhan k iyer : thanks
@padmanabhan k iyer: but how many shares i should have? and what will be the cut-off date for that? and is it valid for any tata company or only for tata motors share? Please inform..
thanks
you can hold any TATa company shares and even 1 share of Tata makes u
a shareholder.
i am interest deposit in Fd in TATA Moters can you suggest Visakhapatnam in Andhrapradesh Address please.
for three years only
hi
ok you can invest in the plan only concern is as per new norms of Tata any one want to invest to hold atleast Tata shares
for more infotmation can call at 09821055617
padmanabhan k iyer
i want to invest in fixed deposit Rs 100,000/- for 5years plz send me some reply in my email.
Please let me know whether FD scheme is still available. If so, i would appreciate receiving application form for this and how to pay the money and also the eligibility to join in the scheme
hi
yes its still available and you can apply for the plan only concern is as per new norms of Tata any one want to invest to hold atleast Tata shares
for more infotmation can call at 09821055617
padmanabhan k iyer
we want to invest in tata motors fd
thanking u
hi
you can apply for the plan only concern is as per new norms of Tata any one want to invest to hold atleast Tata shares
for more infotmation can call at 09821055617
padmanabhan k iyer
my parents are inerested in ur F.D, as they dont have any Demat account so how they can apply.
hi
your parents can apply for the plan no need of demant account
only concern is as per new norms of Tata any one want to invest
to hold atleast Tata shares
for more infotmation can call at 09821055617
padmanabhan k iyer
hello sir,
i want to know if tata motor willn’t be successful in their bussiness, we could loss our principle amt deposit and earned interest. also the risk factor for tata motor fixed deposit plan. your advice will be very helpful to me.
thanks
Yes Nirav, if they do very badly then you could lose your money. For that to happen though something very drastic will have to happen and before that the shares will go to zero.
Thank you for the article. Apart from tata motors, Mahindra Finance also offering Fixed Deposit schemes.
I am an employee of TCS .
1. What will be the rate of interest for fixed deposit cumulative deposit plan for term 3 years ?
2. Also can I open a recurring deposit for 3 years contributing 5000 a month ? what would be the rate of interest and maturity value?
garima
what is the rate of tax in Tata motors fixed deposit ?
hi
we are looking fixed deposit for six months to one year rs in cr.
so i want interest rate and prematual charges(before six months or one year withdrawl)