Good News for Fixed Deposit Investors: Shriram City Union Finance offers 8.4% interest on FD

By: |
August 24, 2020 4:23 PM

The senior citizen investors will get 0.4 per cent higher interest or 8.8 per cent annual interest on choosing the option with regular interest payouts.

fixed deposit, FD, bank FD, interest on FD, FD interest rate, Shriram City Union Finance, Shriram City Fixed Deposit Scheme, effective yieldFor the senior citizens, the effective yield on the cumulative option will be as high as 10.53 per cent per annum.

Amid the low annual interest rate of around 6 per cent offered by the leading banks on their fixed deposits (FDs), here’s something to cheer for the FD investors, as Shriram City Union Finance – a Non Banking Finance Company (NBFC) – has launched Shriram City Fixed Deposit Scheme with over 8 per cent annual interest for the investment period of 5 years.

The non-cumulative option of the FD offers an annual interest rate of 8.4 per cent to investors below the age of 60 years, while the senior citizen investors will get 0.4 per cent higher interest or 8.8 per cent interest on choosing the option with regular interest payouts.

On the other hand, the cumulative option of the FD offers an annual interest rate of 8.09 per cent to investors below the age of 60 years, while the senior citizen investors will get 0.4 per cent higher interest or 8.49 per cent interest on choosing the cumulative option.

At this rate, the 5-year cumulative option of the scheme would altogether results in an effective yield of 9.94 per cent per annum for the investors below the age of 60 years. For the senior citizens, the effective yield on the cumulative option will be as high as 10.53 per cent per annum.

As the interests get cumulated on a monthly basis, the cumulative option of this one-of-a-kind fixed deposit scheme gives higher effective yield in comparison to other FDs.

The Shriram City Fixed Deposit Scheme has got MAA+ rating by ICRA, which is a high credit-quality rating that suggests that the company does not default on the payment of the principal as well as the interest amount.

A part of Shriram Group, Shriram City Union Finance – a deposit accepting NBFC – has been incorporated in the year 1986 and is also involved in providing multiple loan products like Business Loans, Two-Wheeler Loan, Home Loan, Personal Loan and loan against pledged jewellery (Gold Loan).

With the current level of Consumer Price Index (CPI) over 7 per cent, the Shriram City Fixed Deposit Scheme – with over 8 per cent interest and even higher effective yield – will ensure that the money invested in the FD – especially by senior citizens – would keep pace with the inflation.

While the scheme looks attractive, consult your financial advisor before investing to know if it would help you in fulfilling your financial goals.

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