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In this article, we look at Fixed Deposit (FD) provided by Shriram Transport Finance Company. As we all know corporate fixed deposits are offered by both financial and non-financial companies. Likewise Shriram Transport Finance Company offers Fixed Deposit which gives higher interest rate than other bank fixed deposits.

Shriram Fixed Deposit scheme named ‘ShriramUnnati Fixed Deposits’ are rated “[ICRA] AA+ (stable)” by ICRA and rated “IND AA+/Stable by India Ratings and Research which indicates a high degree of safety.

Shriram Transport Finance is India’s largest asset-based Non-Banking Financial Company (NBFC), which has a proven track record for more than 40 years of timely and on track fixed deposit payment. Also it provides multiple financial services under one roof.

Features of ShriramUnnati Fixed Deposits Scheme:

• Cumulative and Non-Cumulative Deposit: In cumulative deposit the principal and interest amount are paid at the time of maturity and in Non-Cumulative it is paid monthly, quarterly, half-yearly and yearly intervals. It has tenure of 1year to 5 years and minimum deposit amount is Rs.5,000 and thereafter in multiples of Rs.1,000.
• This scheme offers Auto-refund facility, which means if person opts for this facility his amount will be credited directly in his bank account.
• Auto-Renewal Facility: If person opt for this facility, the principal can be auto renewed at the time of maturity.
• Pre-mature withdrawal facility: A person can withdraw the amount if he urgently needed before maturity but no interest is paid on pre mature withdrawal after 3 months but before 6 months from the date of booking fixed deposit.
• Higher returns: It offers higher returns up to 8.40% and 0.50% extra for senior citizens.
• Guaranteed Returns: This Fixed Deposit offer fixed and guaranteed returns.
• Loan facility: You can avail loan against your fixed deposit in times of need.
• Power of compounding: Means you earn interest on invested amount and also on the interest you get with the help of compounding.
• Regular income: By choosing monthly, quarterly, half-yearly and yearly interest payout you get regular earnings through interest payments.

Annual Rate of Interest:

Updated Rate of interest (27 July 2022).

Income tax element is slightly different under corporate fixed deposits. Understanding of tax on fixed deposit with Shriram Transport Finance:

• 10% tax deducted at source (TDS) on interest payments on income beyond Rs.5,000 in a financial year.
• If PAN is not submitted, then the TDS charged is @ 20%.
• If one’s annual income falls below the minimum income tax slab, he/she may submit form 15G/15H so that the company does not deduct TDS.

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Eligibility to open Shriram Finance Fixed Deposit Account:

• Individuals
• Partnerships
• Companies
• Hindu Undivided family
• Trustee and Foundations
• Unincorporated associations
• Body of individuals
• NRIs

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Tags: finance, Fixed Deposits, investing