Shriram Finance raises fixed deposit rates

Wealth managers believe given financials of the company, which has emerged as among the biggest non-bank lenders in , conservative investors eyeing an allocation to debt can consider the fixed deposit.

Distributors recommend the fixed deposit of Shriram Finance as the company has a high rating of AA+, strong financials and management. Fixed deposits are simple products, easy to understand for investors and they know what they will earn at the end of the tenure.

These products are often popular with retirees who use them to take a monthly income to fund their expenses. Investors also get a chance to earn more in corporate deposits when compared with bank or postal deposits. After the rate increases, a deposit of Shriram Finance will pay up to 8.8% for a tenure between 36 and 60 months.

Earlier this month from April 3, had increased its deposit rates for senior citizens by upto 60 basis points in the 25-to-35-month tenure and 40 basis points in the 18-to-24-month tenure for senior citizens. Senior citizens can earn up to 8.85% and non-senior citizens can take benefit of rates of up to 8.60%, by booking digitally in the 42 months tenure.

A fixed deposit of (SBI) pays 6.75-7% for the same tenure, while a postal deposit pays 7.1-7.5%.