Shriram Finance has announced a rise in fixed deposit rates effective April 9th, with increases of 5-20 basis points observed across maturity periods spanning 12 to 60 months. This adjustment allows investors to earn returns between 7.85% and 8.8% on their deposits.
Additionally, senior citizens stand to benefit from an extra 50 basis points, while women investors are entitled to an additional 10 basis points. Consequently, the maximum rate has been elevated to 9.4% for a woman senior citizen.
According to wealth managers, considering the robust financials of the company, which has established itself as one of the prominent non-bank lenders in India, conservative investors looking to allocate funds to debt instruments may find Shriram Finance's fixed deposit appealing.
Distributors are advocating for Shriram Finance's fixed deposit, citing the company's commendable AA+ rating, robust financial position, and competent management. Fixed deposits are being recommended for their simplicity and transparency, making it easy for investors to comprehend and anticipate their earnings at the end of the investment tenure.
These products are often popular with retirees who use them to take a monthly income to fund their expenses. Investors also get a chance to earn more in corporate deposits when compared with bank or postal deposits. After the rate increases, a deposit of Shriram Finance will pay up to 8.8% for a tenure between 36 and 60 months, Economic Times reported.
For the same tenure, a fixed deposit with the State Bank of India (SBI) offers an interest rate ranging from 6.75% to 7%, whereas a postal deposit yields a slightly higher return of 7.1% to 7.5%.