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Earn Up to 10.91%*p.a. Effective Yield with Shriram Cumulative FD Now

Posted: 29th December, 2022

Updated: 2nd February, 2023

Written by -


In the era of increasing inflation, investing in fixed deposit is no longer just zero-risk investment but they are emerging to be a profitable and assured return investment option. Several banks and NBFCs have been increasing their interest rates with the consistent increase in repo rates. While people are waiting for the interest rate to reach as high as 9% and above, investing in Shriram cumulative FD can help you earn an effective yield up to 10.91%*p.a.

The fact that the repo rates have been on high rise, which hasn’t been the case for the past decade, has led investors to proactively invest in FDs. With increase in interest rates, the impression of fixed deposits as just a low-risk investment has changed. Fixed deposits are not just a low-risk investment but also a profitable investment option. So, here we are revealing the top know-hows that would help you maximise your returns and yield an interest rate of up to 10.91%*p.a. with a Shriram Cumulative FD.

What is a Cumulative Fixed Deposit?

In a cumulative fixed deposit, the interest is compounded each year and is accumulated until maturity. At the end of the term, the principal amount and interest are paid together. Each year's interest is added to the principal amount. Compounding the interest rates helps us getting the best maturity amount for your fixed deposit plan.

Benefits of Cumulative Fixed Deposit

One Time Investment

Investing in a Fixed Deposit is the most preferred form of investment. An investor needs to make a lump sum amount as a deposit, select their tenure range, the interest rate pay-out, and eventually, the funds are accumulated over a period of time. At the time of maturity, the principal amount and the compounded interest are provided to the investor. The best part about investing in a cumulative FD is that it is a one-time investment wherein the depositor gets assured returns with an attractive interest rate.

Low-Risk Spectrum

Fixed Deposits investment involves zero risk and comes with assured returns. Shriram FDs are rated "[ICRA]AA+ (Stable)" by ICRA and "IND AA+/Stable" by India Ratings and Research. Investing in a fixed deposit provides a reliable source of income. FD investments are completely risk-free as market fluctuations do not have any effect on fixed deposits.

Flexible Tenure

Fixed Deposits have a flexible tenure and help in having cash liquidity. One can invest in a cumulative fixed deposit anywhere between 12 months to 60 months. The significant benefit in applying for a fixed deposit is that at times of financial crisis, one can opt for premature withdrawal, which is subject to a nominal penalty or can take a loan against their FD.

Greater Returns with Compound Interest

Cumulative fixed deposits are well known for their returns. Investing in a cumulative fixed deposit can help maximise your fixed deposit maturity amount. The interest rate is accumulated over a period of time. At the time of maturity, it is credited back to the investor with an effective yield added to the FD returns.

Maximise your Returns

The best part about a cumulative FD Plan is that it is the perfect choice if you are looking forward to increasing your interest income. Investing in a Shriram cumulative FD for maximum tenure can get you an effective yield of up to 10.91%*p.a. inclusive of the additional 0.50%*p.a. and 0.10%*p.a. interest benefit for Senior Citizens and Women Depositors respectively.

Whom is it Best Suited For?

People who would like to invest in a fixed deposit that pays a higher interest rate should consider a cumulative FD. Choosing a cumulative FD is preferable if you have a steady income and not concerned about receiving a regular interest income on a periodic basis. It is the best option for people who have been saving money for upcoming expenses. By making an investment in the Shriram Cumulative FD plan, you can grow your money rather than just letting it sit in your bank account.

5 Reasons Why Shriram Cumulative FD is the Best

Highest Interest Returns

By making an investment in Shriram, one can be sure that their money is secure and will enable them to obtain the highest return on investment (ROI) available for fixed deposits.

Loan Against FD

Save without having to worry about the financial crisis. At times of financial emergency, depositors can get loans against their Shriram FD without having to break their FD savings.

Personalised Plans

Investors can modify their plans at Shriram to meet their specific financial needs. Shriram offers flexible tenure options between 12 and 60 months. Utilizing a Shriram Fixed Deposit Interest Calculator to determine interest rates is a wise way to organise your finances.

Hassle-free and Transparent Processing

A quick 4-step online FD booking process that you can get it done at the comfort of your home is available. Using the FD calculator, you can calculate the exact amount that you would get at maturity.

Additional Renewal Benefit

By renewing an existing FD on maturity, you can earn an additional 0.25%*p.a. interest rate benefit.

How is the Cumulative FD Interest Calculated?

When it comes to the Cumulative FD Plan, the interest earned each year is invested back or added back to the fixed deposit, a process known as compounding. The ability to maximise your ROI is made possible by compounding interest.

To better understand the idea, let's look at an example.

Assume Akash, a depositor, begins a fixed deposit with Shriram for one lakh rupees with a five-year term. He will earn an effective yield of 10.91%*p.a. with an interest rate of 8.73%*p.a. Based on this, he will receive an interest payment of 9.02%*p.a. each year.

The interest is therefore calculated as follows: (Effective Yield interest rate - The rate of interest) (/) (Tenure of the FD)

10.91% - 8.73% = 2.18%

2.18/5 = 0.436

This 0.422 results in an interest rate of 9.09%*p.a. when added to the interest rate of 8.73%*p.a.

Tenure Principal amount Cumulative interest earned Total earned
1st Year 100000.00 9090.00 109090.00
2nd Year 109090.00 9916.28 119006.28
3rd Year 119006.28 10817.67 129823.95
4th Year 129823.95 11801.00 141624.95
5th Year 141624.95 12873.71 154498.66

Here, the investor earns Rs.1,54,498.66 as the final round of interest earned on the fixed deposit. The depositor won't get their principal and interest until the end of the five-year period. Only when the loan reaches maturity, the earned interest income is subject to be taxed.

How To Apply for a Shriram Cumulative FD?

At Shriram, opening an FD is a simple 4-step process.

  1. Step 1:

Sign up using your mobile number

  1. Step 2:

Enter your contact details, such as your PAN and email.

  1. Step 3:

Prior to submitting the payment, choose the payment amount, tenure, and pay-out options.

  1. Step 4:

Enter and validate your bank account information. Increase your returns by obtaining your Fixed Deposit Receipt.

Latest Shriram Cumulative FD Rates

Period(months) Rate (p.a. at Monthly rests) Effective yield % p.a.
12 7.66 7.95
18 7.85 8.31
24 8.08 8.75
36 8.46 9.61
42 8.50 9.87
48 8.55 10.17
60 8.73 10.91

How to Maximise FD Returns?

When it comes to fixed deposits, the unspoken rule is that the highest tenure is the one that yields the highest rate of interest. So, the best way to increase your ROI would be to increase your tenure to the maximum period possible. Investors can even opt for FD laddering (Investing in more than one FD with different maturity tenures and principal amount). This is yet another amazing way to maximise your returns.

Invest Now and Yield Profitable Returns

“Investing is spending money now in order to receive more money later.”-Warren Buffet

A good financial planning involves investing at least 20% - 30% of your finances in a safe yet profitable option. It is important to have a financially secure future. Invest in a Shriram FD today, to reap the benefits of a higher interest income in future.

Key Highlights:

  • An increase in repo rate has aided an increase in the rate of interest offered for Shriram Fixed Deposit
  • Shriram has also introduced an additional 0.10%*p.a. interest rate for Women Depositors along with their existing 0.50%p.a.* interest rate for Senior Citizens
  • In cumulative fixed deposits, the interest income is compounded annually. It is the best way to maximise your interest income from Fixed Deposit.
  • Investing in a Shriram cumulative FD can give you an effective yield as high as 10.91%*p.a.


  1. 1. What factors affect the interest rates on FDs?

In India, the RBI's rules influence the interest rates on FDs. Interest rates at commercial banks are impacted by changes to the repo rate made by RBI. However, when investing in a trusted NBFC like Shriram the interest rates on fixed deposits are still largely unaffected by changes made by policy rate reductions.

  1. 2. How do I select the FD plan with the highest fixed deposit rates?

Depending on your needs, selecting the best-fixed deposit scheme is critical. If you prefer to have your returns in terms of periodic pay-out you can opt for a non-cumulative fixed deposit. If you prefer to maximise your interest income over a period of time, you can opt for a cumulative fixed deposit.

  1. 3. Why is Cumulative FD the most effective FD Plan?

Compound interest accelerates the growth of your investments. It gives a greater interest than non-cumulative FD because you gain revenue on the money you invest and returns at the end of compounding period.

  1. 4. Who should choose a cumulative fixed deposit?

Cumulative fixed deposits are ideal for investors whose primary goal is to fuel their financial goals.

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The Quickest Way to Get Rich with FD Investment: Earn up to 9.05% p.a.
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