Shriram Transport Finance FD Review
Shriram Transport Finance, formerly known as Shriram Transport Finance Company Limited, is a major player in the Indian financial sector. They offer a variety of financial products, including fixed deposits (FDs) which can give you interest rates as high as 9.40%* p.a. Here’s a closer look at Shriram Transport Finance FD Review to help you decide if they’re right for you.
Understanding the Concept of Fixed Deposits
Before we dive into the specifics of Shriram Transport Finance fixed deposits, let’s first revisit the concept of fixed deposits. A fixed deposit, also known as a term deposit, is a type of savings account where an individual or an entity deposits a lump sum of money for a A defined span, usually extending from several months up to multiple years. In return, the financial institution, in this case, Shriram Transport Finance, offers a predetermined interest rate, which remains fixed throughout the tenure of the deposit.
How Fixed Deposits Work
Key Features of Fixed Deposits
Fixed deposits are characterized by their fixed tenure, during which the principal amount is invested at an agreed rate of interest.
At the end of the term, the investor gets back the original amount invested plus any interest earned. The interest rate remains constant, regardless of market fluctuations, providing a stable and predictable return.
Types of Fixed Deposits
Cumulative Fixed Deposits: In these deposits, the interest is accumulated and paid at the time of maturity along with the principal. This type of FD benefits from the compound interest effect, as the interest that is accrued is reinvested.
Non-Cumulative Fixed Deposits: These deposits pay out the interest at regular intervals (monthly, quarterly, semi-annually, or annually), which might be suitable for individuals who need regular income from their investments.
Benefits of Investing in Shriram Transport Finance Fixed Deposits
1) Higher Interest Rate
Grow your savings with interest rates as high as 9.40%* p.a.
2) Benefits for Senior Citizens
Senior citizens get an additional 0.50%* p.a.
3) Special Interest Rates for Women
Women depositors get an additional 0.10%* p.a.
4) Flexible Tenure
STFC offers a wide range of tenure options, ranging from 12 months to 60 months, allowing investors to choose a duration that aligns with their financial goals and liquidity needs.
5) Flexible Payout Options
Shriram Transport Finance offers flexible interest payout options, i.e., monthly, quarterly, half-yearly, yearly or at maturity.
6) Guaranteed Returns
Shriram Transport Finance fixed deposits provide a fixed and guaranteed interest rate throughout the tenure of the deposit, ensuring a predictable and stable stream of returns for investors.
7) Secure Investment
As an NBFC with a strong financial standing, Shriram Transport Finance is a reputable and trustworthy institution, providing investors with a sense of security for their deposits.
8) Convenient Investment Process
The process of opening and managing a Shriram Transport Finance fixed deposit is straightforward and user-friendly, making it accessible to a wide range of investors.
Shriram Transport FD Interest Rates 2024
Shriram Transport Finance Company Rated “[ICRA]AA+ (Stable)” by ICRA & “IND AA+/Stable” by India Ratings and Research.
Non-Cumulative Deposit
| Period (Months) | Monthly % p.a. | Quarterly % p.a. | Half-Yearly % p.a. | Yearly % p.a. |
|---|---|---|---|---|
| 12 | 7.59 | 7.63 | 7.71 | 7.85 |
| 15 | 7.87 | 7.92 | 8.00 | 8.15 |
| 18 | 7.73 | 7.77 | 7.85 | 8.00 |
| 24 | 7.87 | 7.92 | 8.00 | 8.15 |
| 30 | 8.05 | 8.10 | 8.18 | 8.35 |
| 36 | 8.38 | 8.43 | 8.52 | 8.70 |
| 42 | 8.42 | 8.47 | 8.56 | 8.75 |
| 50 (JUBILEE) | 8.47 | 8.52 | 8.62 | 8.80 |
| 60 | 8.47 | 8.52 | 8.62 | 8.80 |
Cumulative Deposit
| Period (Months) | Rate % (p.a. at monthly rests) | Effective yield % p.a. | Maturity value for Rs. ₹ 5000/- |
|---|---|---|---|
| 12 | 7.59 | 7.85 | 5,392 |
| 15 | 7.87 | 8.24 | 5,515 |
| 18 | 7.73 | 8.16 | 5,612 |
| 24 | 7.87 | 8.49 | 5,849 |
| 30 | 8.05 | 8.88 | 6,110 |
| 36 | 8.38 | 9.49 | 6,423 |
| 42 | 8.42 | 9.75 | 6,706 |
| 50 (JUBILEE) | 8.47 | 10.10 | 7,107 |
| 60 | 8.47 | 10.50 | 7,625 |
The interest rates have been freshly updated as of April 29, 2024.
Considerations and Limitations
Lower Liquidity
Fixed deposits are not as liquid as some other investment options. Withdrawing funds before the maturity date often results in penalties, which could reduce the interest earnings.
Interest Rate Fluctuations
While FD rates are fixed, they might not compete well with inflation or provide returns as high as other riskier assets like stocks. When interest rates rise, the locked-in rate might result in an opportunity cost.
Tax Implications
The interest earned on fixed deposits is taxable under income tax laws in most countries, which could reduce the net returns, especially for those in higher tax brackets.
Shriram Transport Finance FD Calculator
To make sure that one’s hard-earned money earns the best interest on investing in a fixed deposit, it is a wise option to use an FD calculator. Therefore, to help customers better planning of their finances in Shriram Transport Finance, As doing Shriram Transport Finance FD Review, we, Intraday With Shahid put forth the Shriram Transport Fixed Deposit Calculator. With this, you can easily estimate the interest you’ll earn by investing a specific amount for a set period.
How to Open a Fixed Deposit with Shriram Transport Finance Company
Opening a fixed deposit with Shriram Transport Finance is a straightforward process. Here’s a step-by-step guide:
- Visit the Shriram Transport Finance website or reach out to their nearest branch.
- Gather the required documents, which may include a valid ID proof, address proof, and a recent photograph.
- Fill out the fixed deposit application form, providing the necessary personal and financial details.
- Choose the desired tenure and investment amount.
- Make the deposit either through online transfer, cheque, or cash.
- Receive the fixed deposit receipt and keep it safe for future reference.
Eligibility For Shriram Transport Finance FD
Who can invest in Shriram Transport Finance FD?
- Resident Individuals
- Partnership Firms
- Partnership Firms
- Nature of work
- Companies
- Hindu Undivided Families (HUFs)
- Hindu Undivided Families (HUFs)
- Skill Development – Placement
- Trusts and Foundations
- NRIs
- NRIs (Accepted for a max period of 3 years)
- Hindu Undivided Families (HUFs)
- Unincorporated Association or Body of Individuals
Customer Reviews and Feedback on Shriram Transport Finance Fixed Deposits
To gain a comprehensive understanding of Shriram Transport Finance fixed deposits, I’ve also looked into customer reviews and feedback. Overall, the feedback seems to be positive, with many investors praising the company’s reliability, competitive interest rates, and smooth investment process.
One customer review states, “I’ve been investing in Shriram Transport Finance fixed deposits for the past few years, and I’m consistently impressed by their commitment to providing a secure and rewarding investment experience. The interest rates are higher than what I’ve found at traditional banks, and the customer service has been excellent.”
Another customer shared, “As a small business owner, I rely on Shriram Transport Finance’s fixed deposits to diversify my investment portfolio. The flexible tenure options have allowed me to align my investments with my cash flow needs, and I’ve been satisfied with the returns generated.”
How to Choose the Right Fixed Deposit
When selecting a fixed deposit, it’s important to consider several factors that can affect the growth and accessibility of your investment:
Factors to Consider
Interest Rates: Higher rates yield more returns. It’s beneficial to scout for the best rates while ensuring the institution is reputable.
Tenure: The length of time the money will be held impacts returns and access to your funds. Choose a tenure suitable to your financial goals.
Penalty on Early Withdrawal: Understand the consequences of withdrawing your deposit early. Some banks may offer lower penalties, which could be important if you anticipate needing funds in an emergency.
Tips on Comparing Offers
Shop Around: Don’t settle for the first offer. Compare what different banks and financial institutions are offering.
Read the Fine Print: Details like compound interest frequency and renewal terms can significantly affect returns.
Use FD Calculators: Many online tools can help you calculate the maturity amount from different banks, making it easier to compare.
Conclusion: Is Shriram Transport Finance Fixed Deposit a Secure Investment Option?
After a comprehensive review of Shriram Transport Finance fixed deposits, I believe they can be a secure investment option for individuals and businesses seeking higher returns on their savings. The company’s strong financial standing, competitive interest rates, and flexible tenure options make it an attractive choice.
However, it’s crucial to consider the potential risks, such as the lack of deposit insurance coverage and the relative illiquidity of fixed deposits. Investors should carefully assess their financial goals, risk tolerance, and liquidity needs before committing their funds to Shriram Transport Finance fixed deposits.
If you’re interested in exploring Shriram Transport Finance fixed deposits as a potential investment option, I encourage you to visit their website or speak with a financial advisor to learn more about the specific features and requirements. By carefully evaluating the risks and benefits, you can make an informed decision that aligns with your financial objectives.
FAQs
Is Shriram Transport Finance FD safe?
Generally, yes. Shriram Transport Finance FD have a credit rating of “[ICRA]AA+ (Stable)” by ICRA and “IND AA+/Stable” by India Ratings and Research, which indicates high credit quality.
What interest rates does Shriram Transport Finance offer on FDs?
Up To 9.40%* p.a. Shriram Transport Finance offers competitive interest rates, which may be higher than some banks. They also offer additional interest for senior citizens and women depositors. You can find current rates online or by contacting Shriram Transport Finance.
Can I get a loan against my Shriram Transport Finance FD?
Yes, Shriram Transport Finance allows loans up to 75% of your deposit amount after 3 months, with interest applied
