Generally, debt instruments gain popularity whenever the equity market experiences volatility and the underlying prices require time to recover. In a turbulent equity market, diversifying your portfolio with risk-free debt instruments and protecting it reduces the risk of potential profitability. In a bid to keep consumer price index (CPI) inflation under control, which hit an 8-year high of 7.79% in April, the central bank is projected to announce another significant rate hike in June, which will result in higher interest rates and higher interest rates. Will increase Even though banks have started raising interest rates, it is still difficult to generate inflation-beating returns against the current scenario. Keeping this in mind, we have selected four risk-free debt investments that can provide you with stable and anti-inflationary returns of over 8%.
Shriram Transport Finance Recurring Deposit (RD)
Shriram Transport Finance Company (STFC) offers a Recurring Deposit (RD) with returns up to 8.50 per cent for debt investors looking for inflation-beating returns. In response to the question “Is it safe to invest in Shriram Transport Finance recurring deposit?” Investors should be aware that STFC RDs are rated “FAAA/Stable” by CRISIL, indicating the highest level of deposit safety, and “MAA+ with stable outlook” by ICRA which gives a clear view of credit levels. Is. STFC offers 7.03 per cent interest on recurring deposits maturing in 12 months, 7.12 per cent on RDs maturing in 24 months, 8.18 per cent on deposits maturing in 36 months, 8.34 per cent and 8.50 per cent on deposits maturing in 48 months. rate is offered. Percentage on deposits maturing in 60 months, with effect from August 1, 2021. This deposit scheme is open to both resident individuals and HUFs with a minimum deposit amount. 500 per installment.
Tamil Nadu Power Finance and Infrastructure Development Corporation (TNPFC) FD
Tamil Nadu Power Finance and Infrastructure Development Corporation (TNPFC) is a government enterprise in Tamil Nadu, hence the risk debate is not necessary at this point of time. This government backed organization offers a fixed deposit scheme with both cumulative and non-cumulative options.
Non-cumulative fixed deposits have a maturity period of 2 to 5 years, and as the name suggests, the interest rate, which ranges from 7.25 per cent to 8 per cent, is paid monthly, quarterly or annually, and Deposit amount is paid. Credit is given to the investor on maturity. Non-cumulative fixed deposits maturing in 24 months will attract an interest rate of 7.25 per cent, deposits maturing in 36 months will attract an interest rate of 7.75 per cent, deposits maturing in 48 months will attract an interest rate of 7.75 per cent. and deposits maturing in 60 months will fetch an interest rate of 8 per cent, which is an inflation-beating return for regular customers.
Senior citizens will get an additional rate of 0.5 percent. Cumulative FDs have a maturity period of 1 to 5 years, with interest rates ranging from 7.25 percent to 8%. As the name suggests, interest will be compounded quarterly and paid on maturity. Deposits maturing in 12 months will earn 7% interest rate, deposits maturing in 24 months will generate 7.25% interest rate, deposits maturing in 36 to 48 months will earn 7.75 percent interest rate, in 60 months Maturing deposits will receive an interest rate of 8%, and senior citizens will earn an additional 0.50 percent interest rate on their deposits.
Tamil Nadu Transport Development Finance Corporation Limited (TDFC) FD
Tamil Nadu Transport Development Finance Corporation Limited (TDFC) is a wholly owned subsidiary of the Government of Tamil Nadu that offers a fixed deposit scheme for debt investors with two options: Term Interest Payment Scheme (PIPS) and Money Multiplier Scheme (MMS) ( mms). The minimum deposit amount acceptable under MMS is Rs 50000, and the interest is compounded quarterly at the applicable interest rate and paid on maturity along with the principal amount.
The MMS scheme has deposit terms ranging from 12 to 60 months, with the company offering a standard rate of 7 per cent for senior citizens and 7.25 per cent for senior citizens on deposits maturing in 12 months. On MMS FD plans maturing in 24 months, TDFC offers regular rates of 7.25 per cent and 7.50 per cent to senior citizens; On MMS FD plans maturing in 36 to 48 months, TDFC offers regular rates of 7.75 per cent and 8.25 per cent to senior individuals. TDFC beats inflation at a regular rate of 8.00 per cent and 8.50 per cent to senior citizens on MMS FD schemes maturing in 60 months.
The minimum deposit amount under PIPS scheme is Rs. 50,000/-, and interest is paid monthly, quarterly or annually. Regular customers will get a monthly interest rate of 7.75 percent on PIPS FDs maturing in 36 to 48 months and 8.00 percent on PIPS FDs maturing in 60 months. Under the PIPS scheme, regular customers will get a quarterly interest rate of 7.25 per cent on deposits of 24 months, 7.75 per cent on deposits of 36 to 48 months and 8.00 per cent on deposits of 60 months. Under the PIPS scheme, regular customers will get an annual rate of 7.98 per cent on deposits of 36 to 48 months and an annual rate of 8.24 per cent on deposits of 60 months.
Senior citizens will get a monthly interest rate of 8.25 percent on deposits of 36 to 48 months and 8.50 percent on deposits of 60 months. They will get a quarterly rate of 7.50 per cent on 24-month deposit, 8.25 per cent on 36-48 month deposit and 8.50 per cent on 60-month deposit. Under the PIPS scheme, senior citizens will get an annual rate of 8.51 per cent on deposits of 36 to 48 months and an annual rate of 8.77 per cent for deposits of 60 months.