New increase in FD Interest Rates up to 9.40%* p.a. How to Plan Your Financial Portfolio?

According to the assessment of an RBI survey by the Monetary Policy Committee in a recent meeting, it is stated that “The outlook on global growth has improved in recent months, despite the persistence of geopolitical hostilities and the impact of monetary policy tightening by central banks across the world.” It is noteworthy that the repo rates have been on a high tide. Shriram Finance has once again increased their interest rates.

There has been a remarkable increase in the interest rates offered by Shriram Finance in the past 6 months. Read this blog to know how you can make the best use of this increase in interest rates to earn huge returns.

Shriram Finance Interest Rates Have Increased Again

Over the past few months, repo rates have been on a constant high tide attracting new investors. With the increasing interest rates, it is visibly clear that fixed deposits are no more a low return investment. Now by investing in a fixed deposit you can earn returns that are nearly in par with the average stock market returns (10%). Shriram Finance offers one of the highest interest rates ranging up to 9.40%* p.a. inclusive of a special interest benefit of 0.50%* p.a. for senior citizens and 0.10%* p.a. for women depositors.

Latest Rise in FD Rates

Note: The above-mentioned interest rates are w.e.f from 9th of April 2024. For more details on Shriram Finance interest rates.

Shriram Finance offers an additional interest benefit of 0.50%* p.a. for senior citizens and 0.10%* p.a. for women depositors on FD. It is always advisable to calculate your returns before you make an investment decision. Calculating your returns now can be instantaneous! Check your returns online.

To Invest Now or Wait It Out?

With a consistent increase in interest rates, should we wait for the interest rates to increase a little more? This is something that most investors ponder over, but it is better to invest now than think over the probability of a potential increase. It is a smart option to ride the hike tide and earn assured returns at a higher interest rate.

Also Read: The Quickest Way to Get Rich with FD Investment: Earn up to 9.40%* p.a.

How to Plan Your Financial Portfolio?

The planning process for your fixed deposit investment will depend on your financial portfolio, which includes your income, expenses, assets, and liabilities. Here are some steps to plan your fixed deposit investment based on different financial portfolios.

Determine your investment objective: The first step is to determine why you want to invest in a fixed deposit. Are you saving for a specific goal, such as a down payment on a house, or are you looking for a safe way to grow your money? Your investment objective will help you determine how much to invest and for how many years.

Evaluate your financial portfolio: Next, evaluate your financial portfolio. Determine your income, expenses, assets, and liabilities. This will help you determine how much money you have in hand to invest.

Assess your risk tolerance: Fixed deposits are a low-risk investment option. Determine your risk tolerance to know how you can strategise and diversify your portfolio.

Determine the investment amount and tenure: Once you have evaluated your financial portfolio and assessed your risk tolerance, determine the investment amount and tenure that suits your needs. The investment amount and tenure will depend on your end goal.

Compare fixed deposit rates: Compare fixed deposit rates offered by different banks and financial institutions. Look out for the institutions offering highest interest rates with the lowest risk to reap more benefits.

Open a fixed deposit account: Once you have determined the investment amount, tenure, and the bank or financial institution, open a fixed deposit account. For opening Shriram Fixed Deposit you will need to provide your personal details along with the investment amount and tenure.

Monitor your investment: Finally, monitor your fixed deposit investment regularly. Check the interest rates offered by other banks and financial institutions and renew your fixed deposit at maturity if necessary.

Bottom Line

The extreme volatility in the market led to a paradigm change in terms of investment options. It is always ideal to have a balance wherein you will be able to manage when the market fluctuates. Those who rely only on investments with lock-in periods wouldn't find it easy at the moment, while having cash on hand is a crucial need. With a fixed deposit, you may let your money grow without worrying about fund liquidity as you can opt for pre-mature withdrawal anytime, with a nominal penalty.

FAQs

1. Why is FD preferable than SIP?

Fixed deposits provide good yields. An SIP, on the other hand, cannot guarantee returns. It is undeniable that a SIP offers larger returns than fixed deposits, however there is no assurance of returns with a SIP.

2. How much of your FD is tax-free?

If you have less than Rs 40,000 in annual interest income from all of your bank-held FDs, the bank is not allowed to take any TDS from that revenue. For senior citizens 60 years of age and older, the limit is Rs 50,000.

3. Which is better corporate fixed deposit or bank fixed deposit?

Corporate fixed deposits provide higher interest rates than bank FDs, whereas bank FDs are preferred for their safety of funds. If you would like to earn higher returns on your FD, it is better to invest in trusted corporate FDs like Shriram Fixed Deposit.

4. What is the new interest rate on FD?

Shriram Finance increased its FD interest rate up to 9.40%* p.a. which includes 0.50%* p.a. for senior citizens and 0.10%* p.a. for women depositors.

Key Highlights

• Shriram Finance has increased the interest rates once again. The Shriram Fixed Deposit Interest Rates now range up to 9.40%* p.a.
• It is ideal to plan your financial portfolio taking into consideration your funds, risk appetite and financial needs.
• Shriram Fixed Deposit provides 0.25%* p.a. upon renewal of fixed deposit during maturity along with the new higher interest rate.