Fixed deposits or term deposits are a safe financial instrument offered by banks and NBFC providing investors with consistent, higher interests than savings accounts. The interest rate is fixed and paid at a predetermined rate throughout the tenure. Fixed Deposit is a popular investment instrument in India. It is ideal for anyone who does not want to bear any risk.
The minimum investment amount is Rs 5000. Notably, Shriram City offers a lucrative interest rate at 7.75% and an additional 0.30% for senior citizens. The tenure for these deposits can range from 12 months to 60 months. You can also apply for an online fixed deposit within minutes by visiting the Shriram City website.
Over the years, Term Deposits have grown exponentially to provide flexibility to investors. There are various types of Fixed Deposits granted by financial institutions:
Fixed Deposits are the best solution to all your problems. Here is a list of problems to which Fixed Deposits provides a solution:
Cumulative Fixed Deposits do not provide regular interest payments. These payments are accumulated and compounded over the investment period and paid out on maturity, along with the principal amount.
In this type, the interest pay-outs are made at regular intervals, monthly, quarterly, semi-annually, or annually. It is most suitable for those looking for a steady source of income, like pensioners.
This is applicable for individuals above 60, with special rates of interest that are higher than the usual fixed deposit rates with flexible tenures.
Tax-Saving Fixed Deposits provide a tax exemption of up to Rs 1.5 lakh in a calendar year. However, the lock-in period for tax-saving fixed deposits is five years, with a one-time lump-sum payment.
To conclude, Fixed Deposits can be a great start to your investment journey. It is an excellent option in terms of capital safety. Additionally, it helps inculcate the habit of spending less as the capital is locked in for the specified period. It provides greater liquidity as you can opt for a loan against your Fixed Deposit. It is a great investment tool for senior citizens because of higher interest rates and an opportunity to go for monthly pay-outs under the non-cumulative fixed deposits.
Shriram City Union Finance has an unchallenged trust of over 45 years and above 5 million customers in the Indian market. Shriram City Fixed Deposit comes with a "MAA+ with Stable Outlook" rating (indicates high credit quality) by ICRA. The investment tenure can range from 12 months to 60 months with a minimum investment of Rs 5000. The interest rates are as high as 7.75% and an additional 0.30% for senior citizens. Also, you can go in for a regular pay-out option for monthly, quarterly, semi-annually, or annually.
For more details on the term deposits, you can also visit the Shriram City website online and use the Fixed Deposit Calculator to know the maturity and interest you can earn on your investment.