Fixed deposits (FDs) are a great and safe investment tool, but with so many banks offering great interest options, which one should you go for? Well, in this article, we will focus on Shriram Finance FD, which is one of the best FD schemes that you can invest in. With attractive interest rates, Shriram Finance FD schemes are undoubtedly a great investment option.
About Shriram Transport Finance FD
Shriram Transport Finance Company is one of the largest financiers of commercial vehicles in India and is a mutual fund-focused asset management company. They provide customers with loans for new and used commercial and passenger cars and construction equipment. Shriram Finance FD rates 2023 for the general public vary between 7.34% p.a. and 8.50% p.a. for a tenure ranging from 12 to 60 months. Shriram Transport Finance FD rates for senior citizens are 0.50% p.a. higher and that for women is 0.10% higher.
Types Of Shriram Transport Finance FD
Shriram Transport Finance FD schemes come in two categories:
- Cumulative Schemes
- Non-cumulative Schemes
Cumulative Scheme
Some key features of Shriram Finance FD schemes under the cumulative scheme include:-
- Tenures available – 12, 24, 36, 48, and 60 months
- The minimum deposit amount is INR 5,000
- TDS deducted is 10% and increases to 20% if the PAN card is not submitted
- Premature withdrawal is available
- Depositors can avail of a loan against the FD
- Internet banking option available
- Auto-renewal options with and without interest
- On-maturity auto-refund option available
Non-cumulative Scheme
Some key features of Shriram Transport Finance FD rates under non-cumulative schemes are:
- Interest payment frequency available — monthly, quarterly, half-yearly and yearly
- Interest is paid to depositors using NEFT
Benefits and Features of Shriram Finance FD
Some benefits and features of the different Shriram Finance FD schemes available include:-
- Tenure of the scheme can range between 1 year and 5 years
- Shriram Finance FD schemes come in two types — cumulative and non-cumulative
- Non-resident Indians (NRIs) can open a Shriram Transport Finance FD
- Premature withdrawal facility is available with all Shriram Finance FD schemes
- Depositors can choose the auto-renewal facility offered for better savings
Procedure to Invest in Shriram Finance FD
You can invest in a Shriram Finance FD scheme in three ways:
- Internet banking facility
- Through the ‘MyShriram App’ (the official app of Shriram Finance FD)
- Offline
Via Internet Banking
To invest in an FD and take advantage of the attractive Shriram Transport Finance FD rates, follow these steps:
- Visit the official website of Shriram Transport Finance
- Click on ‘Menu’ and then on ‘Products’
- Under ‘Products’, find ‘Deposits’ and click on it
- Click on ‘Fixed Deposits’ and then on ‘Invest Now’
- Fill in all the details along with information about the nominee
- Provide all payment and maturity details to deposit the money into the FD
- Click on ‘Accept the Terms and Conditions’ and then proceed ‘Next’
- Click on ‘Submit’ to successfully open an account and invest in Shriram Transport Finance FD
Via ‘MyShriram App’
Follow these steps to open an FD account via Shriram Finance’s official app:
- Go to your app store and download the ‘MyShriram App’
- Under ‘Products’, click on ‘Deposits’ and then on ‘Fixed Deposits’
- Fill in all the required details including nominee information, payment details and maturity instructions
- Verify all the information you’ve entered and accept the terms and conditions
- Click on the ‘Submit’ button to successfully open a Shriram Transport Finance FD account
Offline
If you want to open a Shriram Finance FD account, you must visit the nearest Shriram Transport Finance branch. Fill out the complete application form with all necessary details and documents along with the deposit amount. Once your information is successfully processed and verified, the bank will open an FD and provide you with a receipt.
Eligibility to Invest in Shriram Finance FD
The below-mentioned individuals and institutions can invest in a Shriram Finance FD:
- Resident Indian Individuals
- NRIs
- Foundations and Trusts
- Hindu Undivided Families (HUFs)
- Partnerships
- Companies
- Organisation of Individuals
- Unincorporated Associations
Documents Required for Shriram Finance FD
The valid documents that must be submitted to open an account and invest in a Shriram Finance Transport FD depend on the depositor.
For Resident Indian Individuals
- Proof of address
- Proof of identity
Acceptable forms of proof include an Aadhaar card, voter ID card, PAN card, driving licence, and the individual’s passport.
NRIs
- Proof of address like local property papers, driving licence, voter ID card, passbook, bank statement in India or abroad, or EB bill card
- PAN card
- PIO card as proof of Indian origin
- Foreign employment letter
- Passport with VISA (must be valid)
- NRI undertaking
- DTAA declaration
Trusts and Foundations
- Proof of address
- Identity proof
- PAN card
- Trust deed
- Registration certificate
HUFs
- Proof of address
- Proof of identity
- HUF PAN card
- HUF declaration
Partnership Firm
- Address proof
- Identity proof
- PAN of the firm
- Partnership deed
- Registration certificate
Company
- Address proof
- Identity proof
- PAN of the company
- Resolution by the Board of Directors (BOD)
- Power of Attorney (POA) by employees, managers or officers to complete transactions
- Memorandum of Association (MoA) and Articles of Association (AoA)
- Certificate of Incorporation (COI)
Premature Close of Shriram Finance FD
For all Shriram Finance FD schemes, the lock-in period is 3 months from the date of deposit/renewal, and withdrawal of the FD in this duration is not allowed. However, in case of the death of the depositor, the FD can be withdrawn during the lock-in period. Some other points that the depositor must remember when prematurely withdrawing their Shriram Transport Finance FD scheme are:
- Interest on the FD is not paid if the FD is withdrawn after 3 months but before 6 months.
- If FD is withdrawn after 6 months but before the maturity date, the interest paid is 2% lower than the Shriram Finance FD rate, originally applicable for the tenure, for which the FD was ongoing.
- If no interest rate is applicable for the tenure, the interest rate is 3% lower than the minimum rate at which the FD was accepted by Shriram Transport Finance.
Conclusion
Shriram Finance FD schemes are lucrative and can be a great investment option if you’re looking for something safe. Check out the Shriram Transport Finance FD calculator to enter all details and get an estimate on the ultimate savings!
Shriram Finance FD Schemes FAQ’s:-
The maximum tenure for which an investor can hold a Shriram Transport Finance FD is 5 years.
Yes, Shriram Transport Finance employees receive an extra 0.15% p.a. interest rate on FDs.
No, a Shriram Transport Finance FD cannot be transferred once opened.
Yes, you can easily get a loan against your Shriram Transport Finance FD. However, the interest rate and the loan would be based on the rules determined by the company.
Yes, Shriram Transport Finance allows depositors to add a nominee to their FD.