Shriram Finance Fixed Deposit Rates

Shriram Finance Fixed Deposit Rates

Shriram Finance, a prominent non-banking financial company (NBFC) in India, offers fixed deposits (FDs) with attractive interest rates, making them a popular investment choice for individuals seeking stable returns. The specific interest rates vary depending on the deposit tenure and the depositor’s category. Here’s a detailed overview:

Interest Rates

Shriram Finance generally offers higher interest rates on its fixed deposits compared to traditional banks. As of October 26, 2023, interest rates for fixed deposits range from approximately 7.25% to 8.75% per annum. These rates are subject to change based on market conditions and the company’s policies. It is always advisable to check the latest rates on the official Shriram Finance website or by contacting their customer service.

Tenure: The tenure of the fixed deposit plays a crucial role in determining the interest rate. Typically, longer tenures attract higher interest rates. Shriram Finance offers a wide range of tenures, from 12 months to 60 months, allowing investors to choose a period that aligns with their financial goals.

Depositor Category: Senior citizens usually benefit from higher interest rates on fixed deposits. Shriram Finance provides an additional interest rate benefit of up to 0.50% for senior citizens on their fixed deposits.

Cumulative vs. Non-Cumulative: Shriram Finance offers both cumulative and non-cumulative fixed deposit options. In a cumulative FD, the interest earned is reinvested and paid out along with the principal amount at maturity. In a non-cumulative FD, the interest is paid out at regular intervals, such as monthly, quarterly, or annually, depending on the depositor’s preference.

Features and Benefits

• High Interest Rates: Shriram Finance FDs offer competitive interest rates, potentially providing higher returns than traditional bank FDs.
• Flexible Tenure Options: The availability of various tenure options allows investors to align their investments with their financial plans.
• Senior Citizen Benefit: Senior citizens can earn additional interest on their fixed deposits.
• Loan Facility: Shriram Finance offers a loan facility against fixed deposits, providing liquidity in case of emergencies without breaking the FD.
• Easy Application Process: Opening a fixed deposit with Shriram Finance is generally a straightforward process, both online and offline.
• Rating: Shriram Finance has a good credit rating by reputed rating agencies, this indicates a relatively low risk of default and the company’s ability to repay principal and interest on its debt obligations on time.

Things to Consider

While Shriram Finance FDs offer attractive returns, it’s important to consider the following:

• Risk: As an NBFC, Shriram Finance carries a slightly higher risk compared to public sector banks. It’s essential to assess your risk appetite before investing.
• TDS: Tax Deducted at Source (TDS) is applicable on the interest earned on fixed deposits as per prevailing tax laws.
• Premature Withdrawal: While premature withdrawal is allowed, it may attract penalties, resulting in a lower return on investment.

Disclaimer: Interest rates and other details mentioned are subject to change. Please verify the latest information from the official Shriram Finance website or by contacting their customer service before making any investment decisions.