While the existing highest interest rate of 9.25 per cent is offered on 5-year FDs, additional 0.25 per cent is offered to senior citizens as well as additional 0.25 per cent on renewal of existing FDs.
With a long series of cuts in policy rates by the Reserve Bank of India (RBI), both deposit and lending rates of leading banks have come down recently. Going with the trend, Shriram Transport Finance is also set to revise its interest rates downwards by up to 25 bps (1 bps = 0.01 per cent) for Fresh/Renewal of Fixed Deposits (FDs) with effect from November 1, 2019.
Currently, Shriram Transport Finance FD has one of the highest interest rates of up to 9.25 per cent per annum amongst the ‘AAA’ rated Corporate Fixed Deposits.
Shriram Transport Finance Co. Ltd. (STFC) was incorporated in the year 1979 and has got FAAA rating by CRISIL.
Registered as a Deposit taking NBFC with Reserve Bank of India, STFC is among the leading organised finance provider for the commercial vehicle industry with a track record of about 30 years in this business.
Apart from commercial goods vehicles, STFC has also added passenger commercial vehicles, multi-utility vehicles, three wheelers, tractors and construction equipment to its portfolio.
So, with growing business and a stable rating, the higher interest rate offered on FDs by STFC looks quite lucrative.
While, Resident Individuals, HUFs, Trusts, Domestic Companies, NRIs and even Minors are allowed to invest in STFC FDs, the Resident Individuals may even invest online.
Investors will have the option to invest for 1 year, 2 years, 3 years, 4 years and 5 years. While the existing highest interest rate of 9.25 per cent is offered on 5-year FDs, the company offers additional 0.25 per cent to senior citizens as well as additional 0.25 per cent on renewal of existing FDs.
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There will be both cumulative and non-cumulative options available and investors may choose any of the options at the time of investing in STFC FD. Under cumulative options, interests will be added back to the principal resulting into higher maturity value due to compounding effects, while interest will be paid to the investors as and when it gets due under the non-cumulative option. In case of interest payout, investors may choose any option out of monthly, quarterly, half-yearly and yearly payout options.
If you have any plan to invest, consult your financial advisor to decide if the FD would suit your investment portfolio.