The most attractive feature of this one-of-a-kind FD scheme is that interest gets compounded on a monthly basis and gives higher effective yield in comparison to the other fixed deposits in the market.
As an alternative to bank fixed deposits, one can also invest in company fixed deposits. The latter generally provides higher interest rates, but at the same time also carries relatively high risk. One such company fixed deposit that can be explored is of Shriram City Union Finance, one of India’s leading deposit accepting NBFCs, which has announced a high yield fixed deposit (FD) scheme. One can invest in the cumulative and non-cumulative options through online or offline modes.
From 1st August, Shriram City has launched ‘Shriram City Fixed Deposit Scheme’ with the tenure of up to 5 years. The cumulative fixed deposit scheme offers 8.09 per cent per annum interest rate with an additional 0.40 per cent per annum interest to senior citizens which results in an effective yield of 9.94 per cent per annum and 10.53 per cent per annum respectively.
The Non-Cumulative scheme gives pay-out in regular intervals attracts an interest rate of 8.40 per cent per annum and an additional 0.4 per cent per annum to the senior citizens for a tenure of 5 years.
The most attractive feature of this one-of-a-kind FD scheme is that interest gets compounded on monthly basis and gives higher effective yield in comparison to the other fixed deposits in the market. The lower the frequency of compounding better it is for the investor.
Shriram City offers both cumulative and non-cumulative fixed deposits. If you are choosing non-cumulative deposits, you can earn interest on a monthly, quarterly, half-yearly, or an annual basis. For cumulative deposits, the interest earned against the deposit will get compounded along with the principal amount.
As per the company, the scheme is designed keeping in mind the financial needs of the senior citizens. Even at this tumultuous time when a series of repo rate cuts has led to several banks and NBFCs reducing interest rates on fixed deposits, Shriram City Union Finance has launched such a high yielding fixed deposit scheme.
This scheme with comparatively much higher returns offers a better alternative to the retirees, who find it difficult to meet both their ends due to double whammy of rising inflation coupled with an environment of reducing interest rates all around.
Shriram City’s fixed deposits scheme offers flexible tenure options starting from 12 months to 60 months. One can choose the duration and the amount based on the needs and financial goals. If one has a big event planned in five years, then one can select the 60-months deposit tenure for financing the event.
A deposit accepting NBFC, Shriram City Union Finance is registered with the Reserve Bank of India (RBI) and Ministry of Corporate Affairs. The Shriram City Union Finance Fixed Deposit has the credit rating of MAA+ by ICRA. One should carefully select and evaluate one’s own risk profile before investing in them. The company FDs carries a relatively higher risk than bank fixed deposits.