Retail Non-Banking Finance Company (NBFC), Shriram Finance Limited has announced a hike of 5 to 30 basis points in Fixed Deposit rates across various tenures.
The NBFC will offer an additional interest of 0.50 per cent per annum to senior citizens and an additional interest of 0.10 per cent per annum to women depositors. Also, an additional 0.25 percent per annum will be charged on all renewals.
With this, women depositors who are senior citizens renewing their deposits can earn up to 9.36 per cent interest rate on FDs with effect from January 1, 2023. In this regard, the company issued a press release on 31 December.
Only profit on 60 months deposit
The rate of 9.36 per cent will be applicable on deposits of 60 months. Shriram Finance will offer a rate of 8.45 per cent on deposits with a maturity of 60 months. Senior citizens can get an additional 0.5 per cent. With additional rates for women depositors, the effective rate would be around 9.36 per cent.
Revised interest rates for senior citizens from January 1
The company said that all the above tenors will be available for both offline and online investments. Banks and NBFCs have been raising deposit rates in recent months to raise funds in the tight situation.
Is it safe to invest in Shriram Finance FD?
Shriram Finance is an NBFC and a part of the Shriram Group. It is one of the largest NFBC in India. FDs offered by NBFCs are subject to instructions issued by RBI. However, these deposits do not get the benefit of deposit insurance guarantee of Rs 5 lakh offered by regular banks as per RBI regulations. Therefore, depositors should exercise caution before investing in FD schemes offered by NBFCs.
