Shriram Finance raises FD interest rates to up to 7.85% from October 11
Shriram Finance has announced higher fixed deposit rates, effective October 11, with extra interest for senior citizens and women.
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Good news for those who invest in fixed deposits (FDs). Interest rates on FDs have been raised on the occasion of Dussehra, and investors will benefit directly.
Shriram Finance, described as a small finance bank, announced new FD rates on October 9. The rates come into force on October 11, the first day of Navratri, from when the institution's customers will start earning higher interest.
On FDs of less than Rs 10 crore for a 12-month tenure, the NBFC has decided to pay 7 per cent a year, up from 6.85 per cent. Customers with a 15-month digital FD will get 7.5 per cent from October 11, against 7.1 per cent earlier.
Rates on FDs of 18 to 23 months have also been raised. According to the NBFC, customers will now get 7.25 per cent for this tenure instead of 7.05 per cent. Those holding FDs of 24 to 35 months will get 7.5 per cent in place of 7.1 per cent.
Rates on FDs of 36 to 60 months have gone up too, from 7.5 per cent to 7.85 per cent, the highest of the rates announced.
Some customers will gain even more. The NBFC has decided to give senior citizens above 60 years 0.50 basis points more interest. Women will also get additional interest: all women will receive a rate 0.05 per cent higher.
Customers who choose to extend their FD tenure after maturity will get 0.15 per cent interest.
A rise in FD rates had been expected after the RBI raised interest rates. It remains to be seen which other banks raise their FD rates next. An FD gives a fixed return, and given the swings in the share and gold markets, it can be a dependable investment option. Before putting money in an FD, check the bank's rules and terms carefully along with the interest rates.
