Fixed Deposit: This NBFC has hiked interest rates on FDs; find out the revised rate..

There is a great opportunity to earn interest on fixed deposits. Shriram Finance has announced an increase in interest rates for fixed deposits (FDs) across various tenures. The new rates will come into effect on Sunday, October 11. The NBFC announced this on Friday. Prior to this, the RBI had raised the repo rate on October 7.

**7.5% Interest Rate on 15-Month FDs**

An annual interest rate of 7% will now be offered on FDs of up to ₹10 crore with a tenure of 12 months; the previous rate was 6.85%. The interest rate for 15-month FDs has been raised from 7.1% to 7.5%. However, this rate applies only to FDs booked via digital channels.

**7.85% Interest Rate on 36 to 60-Month FDs**

The NBFC has increased the interest rate for 18–23 month FDs from 7.05% to 7.25%. An interest rate of 7.5% will now be available for 24–35 month FDs, up from the previous 7.1%. For FDs with tenures ranging from 36 to 60 months, the rate has been raised from 7.5% to 7.85%.

**Higher Interest Rates for Senior Citizens and Women**

The non-banking finance company (NBFC) stated that senior citizens—defined as individuals aged 60 years and above—will receive an additional annual interest rate of 0.50% on their FDs. Additionally, women depositors will earn an extra 0.05% interest. Investors renewing their FDs will receive an additional 0.15% interest.

**AAA Rating with Stable Outlook for Fixed Deposits**

Shriram Finance is one of the country's largest NBFCs. Its fixed deposits hold a 'AAA' rating with a stable outlook, assigned by CRISIL Ratings; this rating is considered the safest. ICRA India Ratings and CARE Ratings have also awarded the highest ratings to its fixed deposits.

NBFCs Raising Interest Rates Following RBI's Repo Rate Hike

Banks are also expected to raise interest rates on deposits following the RBI's hike in the repo rate. On October 7, the central bank increased the repo rate from 5.25% to 5.50%. While this will make home and car loans more expensive, it will also result in higher interest earnings on fixed deposits compared to before.

Disclaimer: This content has been sourced and edited from Money Control. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.