Shriram Transport Finance announces FD rate hike of 15 to 25 basis points
Shriram Transport Finance Company (STFC), part of the Shriram Group, announced a hike in fixed deposit rates by 15 to 25 basis points (0.15% per annum to 0.25% per annum) on various mandates. The new rates came into effect on May 20, 2022. Revised interest rates apply to terms of 30 to 60 months.
Below are the prices applied:
The company announced that an additional interest of 0.50% per year will be paid to senior depositors, which was 0.30% per year previously.
Umesh Revankar, VC & MD, Shriram Transport Finance said: “The RBI initiated the rate hike cycle to curb high inflation, which hit an 8-year high of 7.79% in April. This is good news for retail. investors, because higher rates mean higher returns on deposits and an FD that beats inflation is the safest investment option in times of geopolitical and economic uncertainty.”
“Shriram Transport Finance’s FD products are one of the most popular savings products available in the market. Improved asset quality, operating expense control, stable yield spreads and strong performance in FY22 allowed us to further pass on the recent rate hike to FD clients, making our FD rates attractive to the investor,” he added.
Revankar further stated that Shriram Transport Finance’s FDs are rated FAAA/STABLE by CRISIL, which reflects the highest degree of security and hence the best risk-reward ratio among their peers. In an environment of rising inflation, clients need to check whether the real returns on their FDs are negative or positive to beat inflation.