 "Fixed Deposit, FD")
After a wave of fixed deposit (FD) rate cuts by major banks this month, in line with the Reserve Bank of India’s repo rate reduction by 25 basis points to 6 per cent, leading Non-Banking Financial Company (NBFC) Shriram Finance Limited (SFL) has followed suit by revising its FD interest rates. The revised rates will be effective from May 2.
Shriram Finance has announced updated interest rates across tenures ranging from 12 to 60 months. The new rates apply to deposits of up to Rs 10 crore and are available for both fresh deposits and renewals up to 9.93 per cent effective yield per annum.
New FD rate of SFL from May 2, 2025
Under the cumulative deposit scheme, the highest effective yield reaches 9.93 per cent per annum for a 60-month deposit. The annualised interest rates for some of the tenures are:
- 7.65 per cent for 12 months
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- 7.98 per cent for 15 (Digital-only)
- 8.21 per cent for 24 months
- 9.12 per cent for 36 months
- 9.93 per cent for 60 months
Below is the detailed table of tenures and rates offered by NBFC:
Cumulative deposit vs non-cumulative deposit
A cumulative deposit adds interest to the investment over time and pays the full amount (principal + interest) at the end of the term. It’s best for those who don’t need regular income and want to grow their savings for future goals.
A non-cumulative deposit pays interest regularly (monthly, quarterly, etc.) while returning your principal at the end. It’s ideal for people who need a steady income, like retirees. Calculate EMI: EMI Calculator Tool
Extra benefits for senior citizens and women on FD rates
Shriram Finance continues to offer an additional 0.50 per cent interest per annum for senior citizens and 0.10 per cent extra for women depositors. Investors renewing their FDs will also receive an extra 0.25 per cent per annum on the applicable interest rate.
Market trend
The country’s largest lenders like SBI, ICICI, HDFC, and Kotak have already lowered their deposit rates after the RBI’s repo rate cut. Following the suit now NBFC has also started lowering the rates.
Charu Pahuja, group director and chief operating officer at Wise FinServ, said, “This surplus liquidity has reduced banks’ dependence on high-cost deposits, allowing them to cut rates while maintaining their net interest margin.”
Banks had earlier introduced special schemes to attract deposits. ALSO READ: Motilal Oswal launches equity fund tracking India's infrastructure growth
“Now they are discontinuing them or lowering the rates on them,” said Santosh Agarwal, CEO of Paisabazaar.
Expert’s advice
“Depositors are advised to lock into higher rates available now. HNW depositors can benefit from higher rates available on non-callable deposits,” said Adhil Shetty, CEO of Bankbazaar.com.
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