With 8.40% Interest Rate This MAA+ Rated FD Can Be A Good Bet For Seniors



oi-Vipul Das


Updated: Friday, December 18, 2020, 15:40 [IST]

Shriram City Union Finance, the leading two-wheeler financial firm in India and a major Non-Banking Finance Company (NBFC) allowing fixed deposit reported the highest interest rate of 8.40 per cent on its Fixed Deposit (FD) products, along with an additional 0.40 per cent for senior citizens. Most notably, it provides a cumulative monthly benefit that ends in your investment’s best return. This NBFC, valued by more than 5 million Indians across the nation who prefer the products of the company for their personal finance, is listed among the top lenders to MSMEs, in addition to accepting FDs on a wide scale, Shriram City also provides Recurring Deposit (RD) schemes, a respected brand in the retail loan sector.

Shriram City Union Finance’s FD strategies are ranked ‘MAA+ / Stable Outlook’ by ICRA, promising that the principal amount and interest payment will be provided to the investors. In order to open a fixed deposit account with Shriram City, you will need to make a minimum deposit of Rs 5000 in multiples of Rs 1000 with no upper limit for a tenure ranging from 12 months to 60 months. The FDs provided by Shriram City are accessible online at www.shriramcity.in for the ease of investors, where they can invest their preferred amount in just a matter of seconds, which makes it a quicker and secure alternative. Shriram City provides the highest interest rates that are accrued on a monthly basis, leading to a higher return on the investment.

Under non-cumulative options with an additional interest rate of 0.40 percent for senior citizens, the interest rate on Shriram City FD schemes will go up to 8.40 percent per annum. When a customer prefers the cumulative FD method for monthly income compounding, the effective return for senior citizens goes up to 9.94 percent per annum with an additional 0.40 percent interest rate. Not just that an additional interest rate of 0.25 per cent per annum will be permitted if the depositor renews the account after maturity. In addition, personnel of the Shriram Group companies can benefit from an additional interest rate of 0.15% on their deposits. The Shriram City FD schemes allow you to make a premature withdrawal after the lock-in period of 3 months respectively.

Shriram City also provides a wide variety of loan options in addition to FD schemes. With a broad portfolio scattered across the nation with more than 947 branches, several loan offerings such as Business Loans, Two-Wheeler Loan, Personal Loan, Gold Loan, and home loans are also available.



Shriram City Union Finance FD Rates

Shriram City Union Finance FD Rates

For non-cumulative FD

Tenure ROI payable monthly ROI payable quarterly ROI payable half-yearly ROI payable annually
12 7.25% 7.30% 7.37% 7.50%
15 7.44% 7.49% 7.56% 7.70%
24 7.44% 7.49% 7.56% 7.70%
30 7.86% 7.92% 8.00% 8.15%
36 7.86% 7.92% 8.00% 8.15%
45 7.90% 7.96% 8.04% 8.20%
48 7.90% 7.96% 8.04% 8.20%
60 8.09% 8.15% 8.23% 8.40%


For cumulative FD

For cumulative FD

Tenure ROI compounded monthly Effective yield in %
12 7.25% 7.5
15 7.44% 7.78
24 7.44% 8
30 7.86% 8.66
36 7.86% 8.84
45 7.90% 9.17
48 7.90% 9.26
60 8.09% 9.94


Our take

Our take

For most risk-averse investors in India, FDs are the most prominent investment instruments and thus widely considered. Investors favour FDs because they have stable and assured returns and assist in the formation of a secured wealth. Particularly in the case of FDs, diverse FD schemes are provided by banks and NBFCs. Although the NBFCs’ FD schemes deliver higher returns compared to bank FDs, Shriram City Union Finance provides among its counterparts the highest interest rates with an acceptable rating.

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