Investments

Tata Motors Fixed Deposit Plan

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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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94 thoughts on “Tata Motors Fixed Deposit Plan”

  1. Can NRI make the deposit from his NRE A/C and if so repatriation facility is available or not.

    Regards,
    S.B. RAM

  2. S.B. Ram,

    The prospectus says that deposits from NRIs will only be accepted from NRO accounts and that too — only when they don’t represent a transfer from an NRE account.

    From the document:

    “Deposits would be accepted for a maximum period of 3 years provided that deposit shall be placed to the debit of NRO
    accounts only and amount deposited does not represent inward remittance or transfer from NRE/FCNR(B) accounts into a NRO account. Payment of interest as also the repayment of deposit shall be made only by credit to the NRO”

  3. Sir I am interested to invest few money in your scheme can I invest online or suggest me other ways for investment
    I am wating your suggestion.
    Thanks
    Vijay Nemade

    1. You can apply to the scheme by getting in touch with your broker only. This site or none other like this can help you in getting this scheme.

  4. Sir,
    I heared that u have reduce the interest rate ? is it right ,if i want to invest some money in ur scheme with same intrest earlier is it possible pls. replly so i can invest my money in ur company or any other sceme.
    My Mobile no 9820046810

    1. They have not reduced the rate of interest to 7%. You can still get it at earlier rate, please check with your broker.

  5. i want to know the exit load of tata motors if we withdraw the amount in 3 months

  6. Basil,

    The form does talk about premature withdrawal and says that it is allowed solely at the discretion of the company and that they will deduct the brokerage paid by the company at the time of deposit.

  7. Sir I am interested in investing in TATA MOTORS fixed deposit scheme. Firstly please tell weather this scheme is still available. Secondly I am thinking of investing around 50 lakhs in this scheme. Can you guide me that I am not taking any risk by investing in TATA scheme.

    1. @Mir, There is a little risk in investing in this scheme as it is a FD from a corporate. If you are looking for something that is risk free or very little risk please invest in government securities or fixed deposits with SBI.

      @Keki,

      Please get in touch with Tata Motors for your query. This site is not related to them in any manner.

      This is the link you can use to post your query:

      http://ir.tatamotors.com/?CardID=18

      Click on Investor Query and fill out the form.

  8. Dear Sir /Madam,

    I am holding FDR No 94450 dated 04.03.09 in name of Pervin Rointon =
    Khokhri. of TATA MOTORS

    In your covering letter you have mentioned that I will get the interest =
    on 31.03.09 for the period 04..03.09 to 31.03.09 amounting Rs. 253 /-

    Please note that till today I have not received any interest form your =
    end.Kindly look in to the matter any reply me at your earliest.
    Awaiting your reply on above email id

    Regards,

    keki khokhri

  9. Sir,

    Ref : Fixed Deposit Certificate No 131880
    Sub: Correction of status as Shareholder whose Client Id is 10264691 under DP ID IN 302105 of Eureka Stock & Share Broking Services Ltd. and make necessary correction in ECS amount at the rate of interest as applicable to a Shareholder.

    We introduce ourselves as Business Associate of Karvy Stock Broking Ltd. Under code no 48107.
    We have canvassed “FIXED DEPOSIT” of Tata Motors on 31/03/2009 to Mr. Basudeb Das who is your shareholder of Tata Motors as given above.
    But we regret to inform that our client Mr. Basudeb Das has received a “FDR Certificate No. 131880” under category of “ PUBLIC” and received a Statement of ECS at the rate of 11% as applicable for “PUBLIC”. Whereas he has applied under category of “ SHAREHOLDER” and clearly ticked in shareholder category in the application form and necessary documents i,e stock holding statement of Eureka Stock & Sharebroking Services Ltd. attached therewith.
    Therefore we request you to correct the status of the Client as “SHAREHOLDER” and remit the differential amount of interest through ECS in his Bank with interest of @ 11.5% which is applicable for a Shareholder .

    Your early action in this regard is highly appreciated.

    Thanking you,

    Yours Faithfully,

    C M Mukherjee

    Partner
    Ace Financial Services
    (Business associate Code of Karvy 48107)
    Copy to 1) Tata Motrs
    2)Mr Basudeb Das

  10. can i know the risk factor while investing in tata motor fixed deposit

  11. I also want to apply for this Fixed deposit..
    how do I apply..below is my number help me out..

    Hemanshu.

  12. Sir I am interested in investing in TATA MOTORS fixed deposit scheme. So please tell weather this scheme is still available.

  14. Please tell what was the rate of interest on Tata Motor Fixed deposit on 24.4.09

  15. sir
    i want to know this how much interest on fd nd how much comission on it

  16. sir

    would like to know the latest Fd rates, kindly provide the details
    and also how NRI can Invest and can they repatriate the same.

    whats the commission for the FD’s

    regards

    1. @Padmanabhan: Do you have a NRO account? That should be enough to get started. If not then you need to look at getting this first.

  20. I also want to apply for this Fixed deposit..
    how do I apply..below is my number help me out..

    chhaya

  21. 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)

  23. 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

  25. 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

    1. 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.

  26. my parents are inerested in ur F.D, as they dont have any Demat account so how they can apply.

    1. 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

    1. 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

  28. 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

    1. 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

  29. i want to invest in fixed deposit Rs 100,000/- for 5years plz send me some reply in my email.

  30. 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

  32. i am interest deposit in Fd in TATA Moters can you suggest Visakhapatnam in Andhrapradesh Address please.

  33. @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

    1. you can hold any TATa company shares and even 1 share of Tata makes u
      a shareholder.

  35. 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?

    1. 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

      1. 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…

        1. 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

    1. 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

  37. 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?

  38. 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

    1. 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

  39. 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.

  42. I wish to contact Tata Motors reg.FDR No.233740.Could I please have their email address.

  43. Can I invest in Tata Motors Fixed Deposit Scheme no and if so what is last Date.
    Some agent can cotact me urgently.
    mpshukla

    1. dear mr shukla
      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

  45. I am interseted to deposit some money in your company. Whether this scheme is still continuing? Whether you also give some senior citizen incentive?
    Kindly send the forms on line

    1. dear dr.Y.singh
      wish you & your Family a very Happy Deepawali

      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

    1. Latest Interest Rate for Fixed Deposit Scheme. For Senior Citizen, whether extra Interest Rate is available?

      1. dear mr desai

        wish you & your Family a very Happy Deepawali

        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

  48. i am staying in sector-17,faridabad and would like to invest in tata motors fixed deposit scheme.please provide me with the current details .also give me the contact person details in faridabad

  49. Sir I am interested to invest few money in your scheme can I invest online or suggest me other ways for investment
    I am wating your suggestion.
    Thanks
    SUSHIL SHASTRI

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

  52. Hi,

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

  54. 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.

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

  59. 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.

    1. 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 [email protected].
      regards padmanabhan k 9821055617

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

  63. 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.

  65. 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

    1. 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

  67. 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

  68. 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

  69. Dear Sir

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

    Ratish
    Hindalco Silvassa

    1. 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
      [email protected]

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