11% annual interest !!

Tata Motors, one of India's biggest and most respected corporation is offering a fixed deposit scheme offering upto 11% interest (compounded), thats a huge huge huge deal and right now I am scrambling to put together as big a war chest as possible for this. Unfortunately it doesnt seem I can come up with more than 1.5k, without dipping into my cash savings. So what do you think should I be dipping into my cash savings to try and put as much into this as possible?

Tata Motors FD Interest Rates reduced from April 16th,2009

Effective Yield on 3 years Deposit reduced from 13.5% to 11.83%

Tata Motors has announced reduction in Interest rates on its ongoing and hugely popular Fixed Deposit Scheme with effect from April 16th,2009.

Under the Quarterly Income Plan the Interest Rates on 1 year deposit has been reduced by 0.75%, on 2 Year deposit by 1% and 3 year deposit has been reduced by 1%.

Additional Interest to Senior Citizens, Tata Motors Shareholders and Employees of Tata Motors has also been reduced from 0.5% to 0.25%

Other terms and condition of the Fixed deposit scheme remains same. You can read further details about the scheme in my earlier post here.

If you are a senior Citizen or Tata Motors and its subsidiaries employee or a shareholder of Tata Motors, the Effective Yield on 1 Year Deposit will be 9.84%.

Effective Yield in case of 2 Year deposit will be 10.62%

Effective Yield on 3 year deposit will be 11.83%

The effective yield on 3 year deposit will get reduced by 1.67%. Hence, if you have made up your mind to invest in Tata Motors FD scheme, it would be better if you invest before 16th April,2009.

Following are the Main Brokers / Distributors for the FD’s

•Tata Securities •ICICI Direct

•Kotak Securities •Stock Holding Corporation of India

•JM Financial •HDFC Securities