Shriram Finance FD Rates – Types, Premature Withdrawal & How to Invest

Is your hard-earned money sitting idle in the bank account? If yes, don’t let it sit idle; invest it into a Fixed Deposit account. Yes, you read that right! Investing in a Fixed Deposit is the first step towards steady savings and growth. Not only this, but FD will indeed generate inflation-beating returns. Fixed Deposits allow investors to deposit money for a specified period and earn a fixed return on the same. Shriram Finance is one of India’s supreme Non-Banking Financial Institutions with a great history dating back to 1979. The company is renowned for offering the highest Shriram FD rates of around 9.20% p.a.

In this guide, let’s take a look at Shriram Finance FD Rates 2023 and other noteworthy details about their Fixed Deposit scheme. 

Shriram Finance FD Rates

The Domestic Term Deposits of Shriram Finance FD Rates for up to Rs. 5 crores are divided into two categories, i.e. Non-Cumulative and Cumulative. 

Domestic Term Deposits (Up to Rs.5 crore): Non-Cumulative

*NOTE: Shriram Finance reserves the right to modify the interest rates at any time without prior notification. These interest rates are updated as of January 1, 2024.*

Domestic Term Deposits (Up to Rs.5 crore): Cumulative Deposit

*NOTE: Shriram Finance reserves the right to modify the interest rates at any time without prior notification. These interest rates are updated as of 01st January 2024.*

Types of Shriram Finance Fixed Deposits

Shriram Finance offers two types of Fixed Deposit schemes, cumulative and non-cumulative, each with features. Have a look below to learn about each one of them in detail. 

Cumulative FD Scheme

Cumulative FD by Shriram Finance is one of the more popular Fixed Deposit types. Under this FD scheme, the interest is paid only on maturity, based on your chosen tenure. The Cumulative FD involves 1, 2, 3, 4, and 5 years as the tenure options. 

Adding to the perks, senior citizens can receive an extra 0.5% interest on the base rate offered. The minimum investment in Cumulative FD is Rs. 5,000, and you can prematurely withdraw your money if needed. Please note that, in case of premature withdrawal, you will have to pay a 2% interest penalty on the FD only when withdrawn after 6 months. Apart from these factors, you can opt for an auto-renewal feature of your cumulative FD investment. This facility can be accessed at the time of investing.

The features of Shriram Finance’s Cumulative FD Scheme are as follows:-

• Minimum Investment: The minimum investment in Shriram Finance’s Cumulative Fixed Deposit is Rs. 5000. Remember that deposits can be only in multiples of Rs. 1000.

• Tenure: The tenure of Cumulative FD by Shriram Finance is available for 1, 2, 3, 4 and 5 years.  

• Interest Earned: The interest earned on Shriram Finance FD is compounded monthly along with the invested tenure’s principal amount. 

• Auto-renewal and Auto Refund: Shriram Finance allows auto refund and auto-renewal of the Cumulative FD.

• Premature Withdrawal: No premature withdrawal of FD is allowed for up to 3 months of the investment. If the Cumulative FD is withdrawn before 6 months, but after 3 months, no interest will be paid. But, if the deposit is withdrawn after 6 months, Shriram Finance charges a penalty of 2% on the contracted interest rate.

 Non-Cumulative FD Scheme

The minimum deposit in the Non-Cumulative Fixed Deposit scheme by Shriram Finance amounts to Rs. 5000. The interest on such FDs is paid out on a monthly, quarterly, half-yearly or annual basis. If we talk about the monthly payout, the interest is payable on the last day of every month. In the case of quarterly payout, interest is payable on the last day of March/ June/ September/ December. In the case of a half-yearly payout, you will get the interest on the last day of March/ September. Last but not least, in the case of a yearly payout, interest is payable on the last day of March.

NOTE:- The first interest is paid on the last day of the following month on which FD is processed.

The features of the Non-cumulative FD Scheme by Shriram Finance involve the following:

• Minimum Investment: The minimum investment in Shriram Finance FD is Rs. 5,000, and deposits can only be in Rs. 1,000 multiples.

• Tenure: The tenure of Non-Cumulative FD is available in 1, 2, 3, 4 and 5 years.

• Interest Earned: The interest is payable in monthly, quarterly, half-yearly, or annual instalments. 

• Premature Withdrawal: No premature withdrawal of the FD is allowed for up to 3 months of the deposit. No interest will be paid if the deposit is withdrawn after 3 months but before 6 months. But, if the deposit is withdrawn after 6 months, you will be charged a penalty of 2% on the contracted interest rate.

• Auto-renewal and Auto Refund: Shriram Finance FD allows auto-renewal and auto refund of the Non-Cumulative FD. 

Features and Benefits of Shriram Finance FD

Shriram Finance FD offer investors and depositors plenty of amazing features and benefits that involve the following:-

• Higher Rate of Interest: Shriram Finance FD allows you to maximise your savings by offering attractive rates of interest, i.e. up to 9.20% p.a. 

• Compounding Benefits: With Shriram Finance FD Rates, you have the benefit of earning compounded interest on the investment money. This will allow you to multiply your money faster than before. 

• Assured Returns: Shriram Finance FD guarantees regular and assured returns to FD depositors irrespective of market conditions and fluctuations. 

• Secure and Safe Investment: Shriram Finance FD is believed to be a secure and safe investment as it has been rated ‘ICRA/AA+ (Stable)’ by ICRA and ‘IND AA+/Stable’ by India Ratings and Research. 

• Flexible Tenure: With Shriram Finance FD, investors can choose from a flexible tenure that ranges between 12 to 60 months. You can choose any of the flexible tenure options at your convenience. 

• Optimal Investment and Maximum Returns: You can start your journey with Shriram Finance with a minimum deposit of Rs. 5000. This optimal investment will give you maximum returns. 

Loan Against Shriram Finance FD

Shriram Finance offers loans against their Fixed Deposits. The loan provided by Shriram Finance and the rate of interest for the loan entirely depends upon the rules set by Shriram Finance.

Premature Withdrawal of Fixed Deposits

Premature withdrawal of a Fixed Deposit is the process of withdrawing funds from your Fixed Deposit account before its maturity date. This is done by paying the penalty to the bank or financial institution. The premature withdrawal penalty amount varies depending on the bank or financial institution, the FD tenure and the deposit amount.

The below-mentioned points are applicable in case of premature withdrawal of Shriram Finance Fixed Deposit:-

• It is not possible to withdraw fixed deposits before 3 months (the lock-in period) from the date of the deposit/ renewal unless in the event of the depositor’s death. 

• If an FD is withdrawn after 3 months but before 6 months, no interest will be paid. 

• If an FD is withdrawn after 6 months, but before its maturity date, Shriram Finance charges a penalty of 2% on the contracted interest rate.

• If no interest rate was specified for that period, then the interest will be paid at a rate 3% lower than the minimum rate at which the FD was accepted.

How to Invest in Shriram Finance FD?

Do you wish to invest in Shriram Finance FD and take advantage of Shriram Finance FD rates? If yes, here’s how to open or invest in Shriram Finance FD via three modes:-

Invest via Mobile Application

Step 1: Download and install the ‘MyShriram’ application.

Step 2: Under the ‘Products’ section, tap ‘Deposits’ and choose ‘Fixed Deposits’.

Step 3: Type all the relevant details involving the nominee information, maturity instructions and payment instructions.

Step 4: Verify all the entered details and accept all the terms and conditions to proceed.

Step 5: Hit the ‘Submit’ button to open a Fixed Deposit account with Shriram Finance.

It was this easy to open FD with Shriram Finance through the MyShriram application. 

Invest via Internet Banking

Step 1: Go to the official ‘Shriram Finance‘ website.

Step 2: Click the ‘Products’ option under the ‘Menu’ tab.

Step 3: Under the ‘Products’ menu, tap on ‘Deposits’ > ‘Fixed Deposits’.

Step 4: On the FD page, tap ‘Invest Now’.

Step 5: Type in all the required details, like nominee details, among others.

Step 6: Provide maturity and payment details and make the payment towards your first Fixed Deposit.

Step 7: Accept all the ‘Terms and Conditions’ and tap the ‘Submit’ button to open a Fixed Deposit account with Shriram Finance.

You can open a Fixed Deposit account with Shriram Finance via Internet Banking in just seven easy-to-follow steps.

Invest via Offline Mode

Step 1: Visit the nearby branch of Shriram Finance.

Step 2: Fill in the Shriram Finance FD application form with the correct details.

Step 3: Submit the FD form along with all the required documents.

Step 4: Shriram Finance will provide an FD receipt on successfully opening the Fixed Deposit account.

That’s all! You have successfully opened a Fixed Deposit account with Shriram Finance via offline mode. 

Eligibility to Open Shriram Finance FD

If you are willing to open a Fixed Deposit account with Shriram Finance, then you must meet any of the below-mentioned eligibility criteria.

• Resident Individuals
• Companies
• Body of Individuals
• Partnerships
• Trusts and Foundations
• NRIs
• Unincorporated associations
• Hindu Undivided Family (HUF)

Documents Required to Open Shriram Finance FD

To open Shriram Finance Fixed Deposit, you need to submit a list of required documents as per the category you belong to. Find below the list of documents that need to be submitted by Resident Individuals, NRIs, Companies, HUFs etc., to open Shriram Finance FD. 

For Resident Individuals

Proof of address and identity such as Voter ID, Aadhaar Card, Passport or Driving License. 

For NRIs

• Address Proof like Driving License, Voter ID,  Local Property Papers, EB Bill Card, Passbook, or Bank Statement in India and Abroad
• Passport along with a valid visa
• PIO Card to show Indian Origin
• PAN Card
• NRI Undertaking
• Employment letter from abroad
• DTAA declaration

For Company

• Address Proof
• Identity Proof
• Company’s PAN
• Incorporation Certificate
• Power of Attorney given by employees, officers, or managers to complete transactions
• Memorandum of Association and Articles of Association
• A resolution is given by the Board of Directors

For Trusts and Foundations

• Address Proof
• PAN Card
• Identity Proof
• Registration Certificate
• Trust Deed

For Hindu Undivided Family (HUF)

• Identity Proof
• Address Proof
• HUF PAN Card
• HUF Declaration

For Partnership

• Proof of Address
• Identity Proof
• Registration Certificate
• PAN of partnership firm
• Partnership Deed

You May Also Like

FAQ’s:-