| In a tumultuous market scenario, Fixed Deposits (FDs) have emerged as the best products to grow one’s investment in a risk-free and secure way. While FDs are guaranteed investments, they also offer sure shot return on the invested funds. Hence, future of fixed deposits as an investment option is always promising, precisely in India where for generations, fixed deposit as go-to investment tool for the middle class has already borne fruit in different ways. Offered by all banks and Non-Banking Financial Companies (NBFCs), fixed deposit is a great investment instrument that helps the fund corpus of the investors grow safely. As soon as one deposits a sum of money with a bank or NBFC in fixed deposit for a certain period depending on the convenience of the depositor, the deposited sum starts earning interest. The interest rates, however, vary according to the period of deposit and the company offering such scheme. Once the FD matures, the principal amount, along with the interest which is compounded monthly, half-yearly or yearly in most cases, is credited to the depositors’ account unless they choose to reinvest it in the same instrument. Hence, being risk free and hassle-free at the same time, FDs have emerged as the most popular investment tool for most investors in India. Mr. Y.S. Chakravarti, MD & CEO, Shriram City Union Finance said, “The fixed deposit remains as a tool that has the highest stability as the depositor is always assured of the maturity sum and does not risk losing the principal amount. One can also opt for a periodic pay-out of interest in fixed deposits as it does not depend on the market. Also, senior citizens enjoy additional benefit of higher interest rate under fixed-deposit schemes, thus helping them in their retired life assuring the safety of their invested amount at the same time.” For the Indians who always choose to play it safe with their savings, investing in a fixed deposit has always been one of the preferred choices, as Fixed Deposits offer them safe Investment Option with Guaranteed Returns. Another specialty of the FDs is that they offer periodic or accumulated returns. While there is very low risk involved, the returns are guaranteed in FDs. Also, as FDs are not market linked, market volatility plays no part. Thus, FDs are an ideal choice for those who do not prefer any element of risk. Moreover, FDs enable the customers to take loans in the time of crisis, even they can be liquidated easily. Even though all banks in India offer fixed deposits, the rates that NBFCs bring into the mix are a lot higher. Moreover, as they can be easily renewed, the probability of wealth creation and management increases. Not only this, but the depositors can break their FDs at any time when they need. It means they are not at all technically locking away their deposits. Renewal of a fixed deposit even earns more benefits for the depositors, as most of the banks and NBFC’s offer additional interest rate of 0.10% p.a. to 0.30% p.a. to the depositors on renewed fixed deposit making their investment grow even faster. However, the investors are advised to choose the right kind of financial organization depending on the ratings by credit agencies like CRISIL and ICRA. For example, the companies having AAA or MAA+ scale indicates highest safety of invested amount. This ensures the payment of the interest earned along with the principal amount invested in the scheme. Shriram City Union Finance Limited offers interest rate of 8.40% p.a. with an additional 0.40% p.a. for senior citizens. FD schemes offered by Shriram City Union Finance are rated ‘MAA+ / with Stable Outlook‘ by ICRA, ensuring the payment of the interest earned along with the principal amount invested in the scheme. The minimum amount to start an FD account with Shriram City is Rs. 5000, and then a consumer can increase the investment in multiples of Rs. 1000. There is no maximum limit on the amount that can be deposited in this one-of-a-kind FD scheme with tenure ranging from 12 months to 60 months. It also offers seamless online journey making FD booking a fairly easy task which takes less than 5 minutes for the consumers. About Shriram City Union Finance Incorporated in the year 1986, Shriram City Union Finance is a part of Shriram Group which is in the forty-fifth year of its existence. Shriram City Union Finance is Indias leading deposit accepting NBFC, and it’s also one of the frontrunners in retail financing space. It is among the largest financiers of MSMEs and Two Wheelers in the country. It also offers multiple loan products like Business Loans, Two-Wheeler Loan, Personal Loan & Loan against pledged jewellery (Gold Loan), and home loans. In addition, Shriram City Union Finance offers loan against gold ornaments (Gold Loan) and for personal consumption. A deposit-accepting NBFC, Shriram City has, for the year ended March 2020, registered Assets under Management of over Rs. 29085 crore and a current customer base of almost 40.76 lakh borrowers. |
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Ram K