NBFC fixed deposits: The fixed deposits offered by NBFCs are just like Bank Fixed Deposits where you deposit a lump sum amount for a fixed tenure at a predetermined interest rate.
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These FDs are generally considered a safe and secure investment option and are quite popular among risk-averse investors. Here’s an NBFC – Shriram Finance, that has increased its interest rates for multiple tenures.
Shriram Finance: FD rates
The NBFC has increased interest rates on fixed deposits by 0.05 to 0.20% for various maturity tenures, as per its press release issued in April. The revised FD rates are effective from April 9, 2024.
Who is eligible?
Senior citizens aged 60 years or above at the time of deposit/renewal are eligible to earn an additional 0.50% interest per annum, while women investors can avail an extra 0.10% interest per annum.
Additionally, Shriram Finance will offer an additional interest of 0.25% per annum on all renewals.
Women senior citizens investing in 50-month and 60-month fixed deposits are eligible for a 9.40% interest rate per annum, including 0.50% for senior citizens and 0.10% for women.
For the same tenure, senior citizen FD investors will earn 9.30% interest, while regular citizens will earn 8.80%.
Non-cumulative fixed deposit rates
For non-cumulative fixed deposits, the retail NBFC offer interest rates ranging from 7.85% to 8.80% annually for tenure of 12 to 60 months, while the effective return on cumulative fixed deposits ranges from 7.85% to 10.50% annually for the same tenure range.
Here are some important points to consider:
– Senior citizens (aged 60 years or above at the time of deposit/renewal) will receive an additional interest of 0.50% per annum.
– An extra interest of 0.25% per annum will be paid on all renewals when the deposit matures.
– Women depositors will receive an additional interest of 0.10% per annum.
– The minimum tenure of a fixed deposit is 12 months, and the maximum tenure is up to 60 months.
– The maturity date is when all funds due are paid into your nominated account.
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Shriram Finance‘s Ratings and Deposit Terms
Shriram Finance’s fixed deposits are rated “[ICRA]AA+ (Stable)” by ICRA and “IND AA+/Stable” by India Ratings and Research, and they accept deposits in multiples of Rs. 1,000/-, subject to a minimum amount of Rs. 5,000/-.
