Non-bank financial company Shriram City Union Finance (SCUF) on Wednesday said it has hiked fixed deposit rates Up To 50 basis points (bps) across different tenures. Customers can earn interest up to 8.75 per cent on FDs, effective from August 10. An additional interest of 0.50 per cent per annum will be paid to senior citizen depositors, who have completed the age of 60 years on the date of deposit/ renewal.
An additional interest of 0.25 per cent per annum will be paid on all renewals, where the deposit is matured.
FD Rates Offered By SCUF (Deposits Below Rs 5 Crore), effective August 10:
12 Months: For General Public – 6.75 per cent; For Senior Citizens – 7.25 per cent
15 Months: For General Public – 7.25 per cent; For Senior Citizens – 7.75 per cent
24 Months: For General Public – 7.25 per cent; For Senior Citizens – 7.75 per cent
30 Months: For General Public – 8.00 per cent; For Senior Citizens – 8.50 per cent
36 Months: For General Public – 8.00 per cent; For Senior Citizens – 8.50 per cent
45 Months: For General Public – 8.15 per cent; For Senior Citizens – 8.65 per cent
48 Months: For General Public – 8.15 per cent; For Senior Citizens – 8.65 per cent
60 Months: For General Public – 8.25 per cent; For Senior Citizens – 8.75 per cent.
The interest rates offered by SCUF also beat the current level of inflation if invested for at least 15 months. Shriram City’s fixed deposit is a corporate FD. A corporate FD is a type of fixed deposit issued by non-bank companies including housing finance firms or other non-banking financial companies (NBFCs). These are the instruments through which companies raise funds from the public. These deposits are also rated for their credibility by rating agencies.
SCUF has hiked the interest rates on FD after the Reserve Bank of India (RBI) last week raised the repo rate by 50 basis points to control inflation. Banks, including ICICI Bank, Kotak Mahindra Bank and Bank of Baroda, have also raised their interest rates on FD.
On August 5, the RBI’s Monetary Policy Committee raised the repo rate by 50 bps to 5.4 per cent, which is higher than what stood before the pandemic at 5.15 per cent. The MPC in its policy review in June raised the key repo rate by 50 basis points (bps), which was the second hike within almost a month after it increased 40 basis points in an off-cycle policy review in May. The retail inflation in June stood at 7.01 per cent, which is slightly lower than the 7.04 per cent recorded in May but is higher than the RBI’s target limit of 2-6 per cent.
Private sector major ICICI Bank has increased its interest rates on fixed deposit (FD). The new rates have become applicable on deposits between Rs 2 crore and Rs 5 crore, effective August 9.
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