Current Shriram Finance Fixed Deposit Rates: An Overview

Fixed Deposits (FDs) are one of the most popular savings tools in India. They offer a low-risk investment option where the returns are predictable, unlike equity-based investments. Shriram Finance provides a variety of FD options with different tenures and interest rates, allowing investors to select what best suits their needs.

What Are Fixed Deposits?

A fixed deposit is a financial product offered by banks and NBFCs (Non-Banking Financial Companies). It allows investors to deposit a lump sum for a fixed period, known as the tenure. The interest rate is fixed and does not fluctuate during this period, providing a stable investment. FDs are considered a low-risk option because they offer predictable returns. Investors can select their investment tenure based on financial goals and receive interest either regularly or upon maturity.

Shriram Finance FD Rates  – Overview

Shriram Finance offers competitive FD interest rates across different tenures. These rates vary depending on the tenure chosen, with longer tenures generally offering higher interest rates. Interest rates are slightly higher for senior citizens than for general investors.

Below are the latest Shriram Finance FD rates (p.a.) (w.e.f. 9th April 2024):

Tenures	Yearly Interest Rate (% p.a.)
12 Months	7.85%
15 Months	8.15%
18 Months	8.00%
24 Months	8.15%
30 Months	8.35%
36 Months	8.70%
42 Months	8.75%
50 Months	8.80%
60 Months	8.80%

Note: The rates are as per the Shriram Finance official website and may change. Investors should verify the latest rates before investing.

Tenures and Payout Options

Shriram Finance offers FD tenures ranging from 12 months to 60 months. Investors can choose the payout frequency that fits their needs. The options include cumulative FDs, where the interest is compounded and paid at maturity, or non-cumulative FDs, where interest is paid on a monthly, quarterly, or annual basis.

For those looking for regular income, monthly or quarterly interest payouts could be an option. Investors looking to grow their savings may go for cumulative FDs, as the compounding effect can lead to higher returns.

How to Use the Shriram Finance Fixed Deposit Calculator

A fixed deposit calculator is a useful tool for estimating the interest earned over a specific period. The Shriram Finance FD calculator allows investors to input the following:

• The investment amount
• FD tenure
• Interest rate (based on the current Shriram Finance FD rates)
• Payout option (cumulative or non-cumulative)

For example, if an investor deposits ₹5 Lakhs for 3 years at an interest rate of 8.40% p.a., the calculator will show the maturity amount based on the chosen payout option. This helps investors in planning their financial goals effectively.

Premature Withdrawal and Loan Against FD

Shriram Finance provides flexibility if an investor needs to withdraw funds before maturity. Premature withdrawals are allowed but may come with a penalty, which can lower the effective interest rate. It’s important to be aware of these conditions before opting for an FD.

Additionally, investors can take a loan against their FD. Instead of withdrawing the deposit early, they can borrow up to 75% of the FD amount. This helps maintain liquidity without losing interest.

Tax Implications

The interest generated from FDs is subject to taxation under the Income Tax Act, 1961. This interest is considered in the investor’s overall income and taxed according to their income bracket. If the cumulative interest from all FDs in a financial year surpasses ₹40,000 (or ₹50,000 for senior citizens), a 10% TDS is applied.

Shriram Finance does not provide a tax-saving FD. Therefore, investors seeking tax deductions under Section 80C of the Income Tax Act, 1961, may need to consider alternative investment options.

Benefits of Shriram Finance FDs

Competitive Interest Rates

Shriram Finance offers attractive interest rates, with an additional 0.50% p.a. for senior citizens.

Flexible Tenure Options

Investors can choose tenures ranging from 12 to 60 months, allowing flexibility in planning their financial future.

Payout Flexibility

The choice between cumulative and non-cumulative payout options enables investors to align their returns with their cash flow needs.

Loan Facility

Investors who may need liquidity can take loans against their FD without withdrawing the deposit prematurely.

Key Considerations

Although FDs are a low-risk savings tool, investors should consider a few factors before investing:

Interest Rate Changes

While the interest rate is fixed for the FD’s tenure, future FD rates may fluctuate. You can choose to invest when rates are favourable.

Inflation

FD returns may not always keep pace with inflation. High inflation can reduce the real value of the returns, decreasing purchasing power.

Liquidity Constraints

Premature withdrawal of an FD may incur a penalty. It’s advisable to choose a tenure that matches your liquidity needs to avoid losing interest.

Conclusion

Shriram Finance FDs offer a stable investment opportunity with competitive interest rates and flexible tenures. Whether an investor prefers periodic interest payouts or wants to accumulate savings through a cumulative FD, Shriram Finance provides options that could meet their financial objectives.

Using the Shriram Finance fixed deposit calculator, investors can estimate returns based on the current FD rates. This helps in making informed investment decisions. However, it’s important to check the latest rates and terms before investing, as they may change.

Before committing to an FD, consider factors like inflation, tenure, and liquidity needs to ensure the investment aligns with your financial goals.