Companies have a higher risk of FDs than banks, so make sure to check before investing. Currently, the interest rates on FDs of banks or NBFCs range from 5 percent to 8 percent.
So far you must have heard that FD interest rates of banks or companies are at a low level. But we are telling you the fixed deposit (FD) of a company on which you will get 10.53 per cent interest annually. However, before investing in it, you should investigate it and take the opinion of the advisor.
The name of FD is Shriram City Fixed Deposit
We are talking about Shriram City Union Finance. It has launched high-interest FD. It is named Shriram City Fixed Deposit. The duration of this FD is five years. According to the company, it is paying the highest interest on FD. This company is NBFC and its market is mostly in South India.
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The interest is only 8.09 percent, but will be 9.94 percent overall.
The company has said that it is paying 8.09 percent interest in this scheme. But if we add it together, it will be 9.94 percent. While the senior citizen would get it as 10.53 percent. The company has stated that 8.40 percent interest is being paid annually on a cumulative basis. Senior citizens are being given 8.80 percent interest on FD. This interest will be available on monthly, quarterly, half yearly and yearly basis. This scheme is designed keeping in mind the senior citizens.
Recently, RBI has reduced repo rates
The company has said that recently the Reserve Bank of India (RBI) has cut the repo rate several times. This has brought down the interest rates. Despite this, the company is currently paying the highest interest rate on FD. The credit quality of FD of this company has been rated MAA Plus by ICRA. This means that the company has not defaulted in any principal or interest payments. The company also provides loans to individual and small traders.
Especially those merchants who do not get loans from banks or any other company. The company also offers business loans, personal loans, two-wheelers, gold loans and MSME loans.
Mainly deposit taking NBFC company is
Shriram City Union Finance is a predominantly deposit taking NBFC company. It is registered in the Ministry of RBI and Corporate Affairs. Shriram City has 947 branches across the country. It is the country’s leading two-wheeler and MSME financier. Since social distancing has become a new rule, people now want to go by their own vehicle. This is why demand for two-wheelers has increased. Due to this, demand for loans has also increased. Also, small traders are taking loans from Shriram City.
The company says that its capital requirement will be met by the deposit received from retail, so that it can lend further. However, analysts believe that company deposits are slightly more risky than banks. Therefore, caution should be exercised in investing in such companies.
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