FDs are always considered first by general investors as well as senior citizens in India due to liquidity and guaranteed returns. However, during the current competitive market scenario, other banks and NBFCs have reduced interest rates on fixed deposits. But during the falling interest rate on FDs, a high yield cumulative fixed deposit (FD) scheme called” Shriram City Fixed Deposit which has launched by the Shriram City Union Finance (Shriram City) which is India’s top deposits accepting NBFCs. It provides the highest interest rate in the market and has a term of up to five years in both the Cumulative and Non-Cumulative options according to the firm.
The Cumulative Scheme of Shriram City provides an interest rate of 8.09 per cent p.a. With an extra 0.40 per cent p.a. interest rate for senior citizens, resulting in an efficient yield of 9.94% p.a. 10.53 per cent per annum. Shriram City offers up to 8.40% p.a. in the Non-Cumulative Scheme. And an extra 0.40 per cent p.a to the senior citizens. The system is structured specifically to meet the specific desires of senior citizens as the interest rates are payable monthly, quarterly, half-yearly or yearly. One of Shriram City Fixed Deposit’s remarkable properties is that it generates interest on a monthly basis, resulting in the highest interest output especially in comparison to other organisations that offer the investment to be compounded quarterly, half-yearly or annually.
Shriram City Union Finance has initiated a high-yielding fixed deposit scheme even at this traumatic time when a sequence of repo rate cuts have spurred to several banks and NBFCs lowering interest rates on fixed deposits. The fixed deposit scheme launched by the Shriram City Union Finance has a credit rating of MAA+ by ICRA. which indicates the firm does not collapse on the reimbursement of the interest amount and principal respectively. Shriram City also offers loans to customers such as business loans, personal loans, two-wheeler loans, gold loans and loans from MSMEs. Shriram City Union Finance, a deposit accepting NBFC, is authorized with the Reserve Bank of India (RBI) and the Corporate Affairs Ministry. According to the Brand Trust Report of 2016, Shriram City is India’s leading financial services company with more than 947 branches throughout the country.
Conclusion: Shriram City Fixed Deposit bears a comparatively higher risk than the fixed deposits of a bank. Therefore, it is suggested to analyse the past returns cautiously before investing.