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Shriram City Offers Highest Interest Rate on Fixed Deposits for Senior Citizens

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Shriram City Union Finance (Shriram City), India’s largest two-wheeler financier and a leading deposit-accepting Non-Banking Finance Company (NBFC), has announced the highest interest rate of 8.40% along with an additional 0.40% for senior citizens on its Fixed Deposit (FD) schemes. Most importantly, it offers a monthly cumulative feature which results in the highest yield on your investment. Trusted by more than 5 million Indians across the country who choose the company’s products for their financial planning, this NBFC is ranked amongst the largest lenders to MSMEs, besides accepting FDs on a big scale. A reputed name in the retail loan segment, Shriram City also offers Recurring Deposit (RD) schemes.

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.

Mr. Y.S. Chakravarti, MD & CEO, Shriram City Union Finance said. “The festival months have generally always seen Shriram City scale up its two-wheeler financing business, but this year’s performance has been particularly spectacular as it comes on the back of a prolonged lockdown. After having financed over one lakh vehicles in October, our teams did even better in November, and we funded almost 1.67 lakh two-wheelers, which attributes to disbursement of over Rs. 1,000 crore. Our performance in this month also has to be considered from the perspective that we financed 10.41% of the number of two-wheelers sold in the country. Retail deposits have helped us to manage the capital requirements in both the Two-Wheeler and MSME lending space.”

For the convenience of the depositors, the FDs offered by Shriram City are available with online access at: where they can deposit their desired sum in just a few minutes, and it’s also a faster and safer option. The customers can even walk into any branch of Shriram City and open an FD account offline. Shriram City offers highest interest rates which are cumulated on a monthly basis, resulting in a higher yield (net interest earned) on the investment. The interest rate on Shriram City FD schemes can go up to 8.40% per annum yearly under non-cumulative schemes with an additional interest rate of 0.40% for senior citizens. If a customer chooses the cumulative FD scheme with the interest compounding monthly, the effective yield goes up to 9.94% per annum with an additional 0.40% for senior citizens. Not only this, if the customer renews the deposit after maturity, an additional interest rate of 0.25% per annum would be allowed. The employees of the Shriram Group companies can further avail an additional interest rate of 0.15% on their investments. There is a lock-in period of 3 months during which the customers cannot withdraw their deposits; however, after the lock-in period is over, premature withdrawals are allowed.

FDs are the most popular investment tools for most investors in India. According to a survey conducted by YouGov India among 1019 respondents in July 2019, FDs ranked in the number one spot as the most popular investment schemes. The results of this survey indicated that over 47% of the respondents had invested in an FD scheme for guaranteed returns. (Source:

FDs are preferred by investors because they give safe and guaranteed returns and help in the creation of a secured corpus. Given the popularity of FDs, banks and NBFCs offer various FD schemes. While the FD schemes by NBFCs give better interest rates on investment, Shriram City Union Finance offers the highest interest rates amongst its peers.

Here’s a quick look on the FD interest rates offered by Shriram City in its non-cumulative and cumulative FD schemes-

Non-cumulative FD scheme

Period of depositInterest payable monthlyInterest payable quarterlyInterest payable half-yearlyInterest payable yearly
12 months7.25% p.a.7.30% p.a.7.37% p.a.7.50% p.a.
15 or 24 months7.44% p.a.7.49% p.a.7.56% p.a.7.70% p.a.
30 or 36 months7.86% p.a.7.92% p.a.8.00% p.a.8.15% p.a.
45 or 48 months7.90% p.a.7.96% p.a.8.04% p.a.8.20% p.a.
60 months8.09% p.a.8.15% p.a.8.23% p.a.8.40% p.a.

Cumulative FD scheme

Period of depositInterest compounded monthlyEffective annual yield
12 months7.25% p.a.7.50% p.a.
15 or 24 months7.44% p.a.15 months – 7.78% p.a.

24 months – 8.00% p.a.

30 or 36 months7.86% p.a.30 months – 8.66% p.a.

36 months – 8.84% p.a.

45 or 48 months7.90% p.a.45 months – 9.17% p.a.

48 months – 9.26% p.a.

60 months8.09% p.a.9.94% p.a.

Apart from FD schemes, Shriram City also offers a wide range of loan products, including commercial and personal vehicle loans, gold loans, and personal loans. With a strong network of more than 947 branches spread across the country, Shriram City has more than 40.76 lakh borrowers. Moreover, it has a strong financial position with Rs 29,085 crore in registered assets under management as of the year ended 31st March 2020.


SMEStreet Edit Desk

SMEStreet Edit Desk is a small group of excited and motivated journalists and editors who are committed to building MSME ecosystem through valuable information and knowledge spread.

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