One of the unique features of the FD is that it accumulates interest on a monthly basis, which results in the highest interest yield compared to quarterly or half-yearly compounding on an investment.
The FDs are available under both the Cumulative and Non-Cumulative Schemes and have a tenure of up to five years.
If one is looking for a fixed deposit with a high-interest rate, here is an investment option. Even as other banks and NBFCs have slashed interest rate on fixed deposits in the current challenging market scenario, Shriram City Union Finance (Shriram City), one of India’s leading deposits accepting NBFCs, has launched a high yield cumulative fixed deposit (FD) scheme called “Shriram City Fixed Deposit. The FDs are available under both the Cumulative and Non-Cumulative Schemes and have a tenure of up to five years. As per the company, it is offering the highest interest rate in the market.
Shriram City Cumulative Scheme offers 8.09% p.a. interest rate with an additional 0.40% p.a. interest to senior citizens which altogether results in an effective yield of 9.94% p.a. and 10.53% p.a. respectively.
In Non-Cumulative scheme Shriram City offers up to 8.40% p.a. and additional 0.40% p.a. for Sr. Citizens with monthly, quarterly, half-yearly or yearly interest pay-outs. The scheme is exclusively crafted in keeping with the financial needs of senior citizens.
One of the unique features of Shriram City Fixed Deposit is that it accumulates interest on a monthly basis, which results in the highest interest yield compared to other institutions which offer quarterly, half-yearly or yearly compounding on the investment. Even at this distressing time when a series of repo rate cuts have led to several banks and NBFCs reducing interest rates on fixed deposits, Shriram City Union Finance has launched a high yielding fixed deposit scheme.
Shriram City Union Finance Fixed Deposit has the highest credit-quality rating of MAA+ with stable outlook by ICRA which suggests the company does not default on the payment of the principal as well as the interest amount. Shriram City also provides credit to individuals with small businesses who might not have access to organized financial services in India. It provides Business Loans, Personal Loans, Two-Wheeler, Gold Loan and MSME loans.
A deposit accepting NBFC, Shriram City Union Finance is registered with the Reserve Bank of India (RBI) and Ministry of Corporate Affairs. Shriram City is India’s most Trusted Financial Services Brand, according to the Brand Trust Report consecutively from 2016. Shriram City has a wide distribution network with over 947 branches across the country.
Shriram City is India’s largest Two-Wheeler and MSME financier with a huge presence across the country. Mr. YS Chakravarti, MD & CEO, Shriram City Union Finance, said; “Social distancing is the new norm and this will result in a surge of people moving from public transport to an economic mode of private transport Two-Wheeler. We have already started seeing a spike in Two-Wheeler volumes compared to the previous months. The need for capital from the MSME sector has already started knocking our doors and the coming months will see a lot of funding. Retail deposits will definitely help us manage the capital requirements in both the Two-Wheeler and MSME lending space.”
The company fixed deposits carry a relatively higher risk than bank fixed deposits and hence evaluate carefully before investing in them.