New Delhi: Fixed deposit investors have a reason to review their investment options as Shriram Finance has announced higher interest rates on select fixed deposit (FD) tenures. The revised rates were announced on October 9 and will come into effect from October 11, ahead of Dussehra and during Navratri.
The change will allow eligible customers to earn better returns on deposits, depending on the tenure they choose.
Shriram Finance FD Interest Rates: What’s Changed?
Shriram Finance has revised interest rates across several fixed deposit periods for deposits below Rs 10 crore. Under the new rates, a 12-month FD will earn 7% annual interest, up from the earlier rate of 6.85%.
For customers choosing a 15-month digital fixed deposit, the interest rate has increased from 7.1% to 7.5%. Depositors opting for tenures between 18 and 23 months will now receive 7.25%, compared with the previous rate of 7.05%.
The revised rates also offer higher returns on longer-term deposits. FDs with tenures ranging from 24 to 35 months will earn 7.5%, up from 7.1%. Meanwhile, deposits held for 36 to 60 months will receive an interest rate of 7.85%, compared with the earlier 7.5%.
Additional Benefits for Senior Citizens and Women
Shriram Finance also provides additional interest benefits to certain customer groups. Senior citizens aged 60 years and above are eligible for an extra 0.50 percentage points over the applicable standard rate. Women depositors can receive an additional 0.05 percentage points.
Customers who renew their fixed deposits at maturity can also qualify for an extra 0.15 percentage points, subject to the applicable terms and conditions.
These additional benefits can increase the effective interest rate available to eligible depositors.
What Should FD Investors Consider?
Fixed deposits offer returns at a predetermined interest rate for the selected tenure, making them an option for people who prefer predictable earnings. However, investors should compare the available rates, deposit terms and withdrawal conditions before committing their money.
Interest rate changes by financial institutions can influence the returns available on new deposits and renewals. Investors should also check the latest applicable rates directly with the financial institution before opening an FD.
Before investing, customers should carefully review the deposit tenure, premature withdrawal rules, renewal conditions and other applicable terms to understand the overall benefits and limitations.
Disclaimer: This article is intended for informational purposes only and should not be considered financial or investment advice. Interest rates and additional benefits are subject to the financial institution’s applicable terms and may change. Readers should verify the latest rates and conditions with Shriram Finance and assess their financial needs before making an investment decision.
