Saturday, August 29, 2009

Tata Motors to re-launch Fixed Deposit Scheme

Tata Motors,    which is reeling under losses, resulting from the Jaguar-Land Rover acquisition and the slowing economy, is planning to re-launch a Fixed Deposit Scheme and expects to mop-up Rs 1500 crores.

The previous scheme, which was open until April 15th,   offered an interest rate of upto 11%,   on FDs with three year maturity.    Subsequently the offering was closed to the public and only open to the share holders.

The new  scheme from Tata Motors, offers interest rates between 8 and 8.75%, depending on the duration (choice of 2 year or 3 year maturities).

The new schemes are as follows:

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 Application forms are available for download.

Recommendation :  Avoid.   The interest rates are not very high for the risk undertaken,  especially in relation to the rates offered by bank FDs (7-8%).

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