Tata Motors FD Scheme

Tata Motors is offering 10.5% rate of interest for 1 year of deposit, 11% for 2 yrs and 11.5% for 3 yrs of deposit which is higher than what the other banks are offering.

Hey thanks for your replies!!

Has anyone done risk analysis for the same scheme??

See there is shortage of funds for corporates as the liquidity crunch is felt across the globe. India is also badly affected in so far as liquidity and level of ecomic activiy is concrened. Companies even do not have funds to meet the working capital requirements. Raising of funds through FD is not a bad option as the call money rate are also skyrocketing. By offering some basis point above the market rate makes business sense in this scenerio of liquidity crunch.