Amid rising interest rate scenario, when commercial banks have been continuously raising interest rates on their fixed deposits, non-banking financial corporations (NBFCs) are not behind.
Shriram Finance, an NFBF, offers interest rates that are as high as 9.10 percent per annum.
It offers a regular rate between 7.6 percent to 8.5 percent to individuals for deposits with a tenure ranging between one year to five years.
On the top of this, senior citizens are entitled to receive an extra 50 basis points, while women customers are offered another 10 basis points extra on their fixed deposits. Consequently, maximum rate of interest one can earn on these deposits is 9.1 percent per annum.
ICRA has rated the fixed deposits offered by Shriram Finance as AA+ (stable). One can opt for flexible interest pay out options i.e., monthly, half-yearly and yearly at the time of maturity.
These deposits are open to resident individuals and partnership firms.
One-year FDs fetch an interest of 7.6 percent. It increases to 7.75 percent for an 18-month deposit. The two-year FDs offer an interest of 8.05 percent. The 3-year FDs offer an interest of 8.25 percent. The rate rises to 8.35 percent on a four-year deposits. Finally, five-year fixed deposits offer an interest of 8.5 percent.
On a rise
It is noteworthy to mention here that a number of private and state lenders have recently revised their FD rates.
IndusInd Bank also revised its FD interest rates with effect from March 18, 2023. The new rates range from 3.5 percent to 7.75 percent for FD maturing in 7 days to 5 years.
UCO Bank raised its FD rates w.e.f. March 15, 2023 for deposits of less than ₹2 crore between 2.9 percent to 7.2 percent based on the tenure of deposits.
Bank of Baroda also revised its interest rates on term deposits. It now offers an interest rate in the range of 3 percent to 7.05 percent for tenures ranging between 7 days to 399 days.