- Date : 14/11/2022
- Read: 3 mins
A look at Sundaram Finance fixed deposit features
Investments in the fixed-income category deliver a steady return and act as a safe haven asset in portfolios. The average investor thinks of government or government-backed options as the only fixed-income investment. However, many financial institutions and corporates also offer these fixed-income investment options.
Increased Interest Rates
Large parts of the world have witnessed a record-breaking surge in inflation. An over-supply of money in the market is the primary cause, which can be reduced by limiting its supply by making loans expensive. However, the global hike in interest rates has brought in good news for conservative investors. Their fixed-income investments are now likely to deliver an even higher rate of return.
Commercial banks and government schemes and instruments are popular choices for fixed-income investments. These investments deliver a better return than saving bank accounts, even stocks in case of economic recession. However, corporate, and other institutional fixed deposits offer an even higher return. Some of these corporates and institutions command a creditable credit rating, making them almost as safe as government investments.
Sundaram Finance Fixed Deposits
Sundaram Finance Fixed Deposits have been rated AAA/Stable by CRISIL and ICRA, two of the leading credit rating agencies in India. With effect from 16 November 2022, Sundaram Finance is raising its maximum interest rate on fixed deposits from 7.65% to 7.8%. This is more than 1% higher than what many leading banks are offering on their FD products.
Some of the salient features of the Sundaram Finance fixed deposit scheme include,
- The minimum deposit account for creating an FD account is Rs 10,000,
- The interest rates on existing deposits remain fixed till the maturity of the deposit,
- To avail of the higher rate of interest offered to senior citizens, the investor must have completed 60 years at the time of deposit or renewal,
- The interest on the deposit is eligible for monthly or quarterly credits,
- Interest is paid to the investor through RBI electronic clearing service, NEFT, or by way of “at par” cheques.
Interest Rate Offered
A 12 and 24-month Sundaram Finance FD delivers an annual interest rate of 7.15%, which amounts to 6.93% in monthly credits, and 6.97% in quarterly credits. For senior citizens, the annual rate of interest increases to 7.5%.
In a three-year term deposit, the interest rate increases to 7.3%, with monthly and quarterly rates being 7.07% and 7.11% respectively. In this deposit, senior citizens can earn a whopping 7.8%.
Sundaram Finance has maintained a AAA rating for around three decades, making it a reliable investment option. If you are planning to park some of your funds in fixed-income options, do compare the interest rate, credit rating, minimum investment, terms offered and other features of multiple banks and companies before investing.