FD Rates: Even as inflation in the country is hovering over 7 per cent and equity markets becoming volatile, people are looking for investment avenues that can offer guaranteed returns while beating inflation. incorporated Fixed deposit (FD) can be seen with non-bank finance companies Shriram City Union Finance (SCUF) and Shriram Transport Finance Corporation (STFC). They are offering interest rates in the range of 6.5-7.9 per cent on their fixed deposits, which is . More than bank FD,
What are Corporate Fixed Deposits?
Corporate FDs are a type of fixed deposit issued by non-bank companies, including housing finance firms or other non-banking financial companies (NBFCs). These are the tools through which companies raise money from the public. These deposits are also rated for their credibility by rating agencies.
FD rates offered by SCUF and STFC (deposit less than Rs.5 crore):
12 Months: for general public – 6.50 percent; For Senior Citizens – 7.00 percent
15 Months: for general public – 6.75 percent; For senior citizens – 7.25 percent
24 months: for general public – 6.75 percent; For senior citizens – 7.25 percent
30 Months: for general public – 7.75 percent; For senior citizens – 8.25 percent
36 Months: for general public – 7.75 percent; For senior citizens – 8.25 percent
45 Months: for general public – 7.80 percent; For senior citizens – 8.30 percent
48 months: for general public – 7.80 percent; For senior citizens – 8.30 percent
60 Months: for general public – 7.90 percent; For senior citizens – 8.40 percent.
What are Bank FD Rates?
The interest rates offered by SCUF and SRFC also beat the current level of inflation when invested for at least 15 months. Moreover, they are also higher than the interest rates offered by various banks on fixed deposits.
For example, Punjab National Bank (PNB) offers interest rates in the range of 3.00-5.25 per cent depending on the tenure of the deposit. Senior citizens are offered 50 basis points more than this. IDFC First Bank offers FD interest rates in the range of 3.50-6.00 per cent. India’s largest private sector lender HDFC Bank offers 2.50-6.00 percent interest rates. These interest rates are for deposits below Rs 2 crore. ICICI Bank also offers interest rates in the range of 2.50-5.75 on its fixed deposits.
To control inflation, the Reserve Bank India (RBI) raised the key repo rate by 50 basis points (bps) in early June, nearly a month after the central bank’s monetary policy committee hiked it by 40 basis points in an off-cycle policy review in May. The second was growth. Retail inflation stood at 7.04 per cent in May, which is higher than the RBI’s target of 2-6 per cent.
Recently, several lenders including ICICI Bank, State Bank of India and HDFC Bank have increased their interest rates for both deposits and loans.
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