2 high rated NBFCs offering inflation-beating returns up to 8.50% on RDs
When it comes to short to long-term investments, recurring deposits are often preferable to debt investors since they allow for monthly installments similar to SIPs and prevent lump sums. The lowest term for recurring deposits is usually six months, while the maximum duration is ten years.
When it comes to short to long-term investments, recurring deposits are often preferable to debt investors since they allow for monthly installments similar to SIPs and prevent lump sums. The lowest term for recurring deposits is usually six months, while the maximum duration is ten years. It's difficult to earn inflation-beating returns from debt investments in the face of a volatile equities market and increasing inflation. The equity market is witnessing corrections and the annual inflation rate in India grew to 7.79 per cent in April 2022, making debt instruments the best method to hedge your portfolio against inflation. Here are the recurring deposits with up to 8.50% returns given by Shriram Transport Finance Company (STFC) and Shriram City Union Finance, India's two largest non-banking financial companies.
STFC RD
CRISIL has given this NBFC a credit rating of FAAA/Stable and ICRA has given it a credit rating of MAA+/Stable Outlook. STFC provides a recurring deposit with maturities ranging from 12 to 60 months, with deposits maturing in 60 months fetching the maximum interest rate of 8.50 per cent. After 60 months, a monthly installment of ₹500 will provide a maturity value of ₹37.500. STFC will provide the following rates on recurring deposits from August 1, 2021, with no additional perks for older persons.
Period in months | Interest rate p.a. |
12 | 7.03% |
24 | 7.12% |
36 | 8.18% |
48 | 8.34% |
60 | 8.50% |
Shriram City Union Finance RD
ICRA has given Shriram City's Recurring Deposits a "MAA+/ with Stable Outlook" rating, indicating strong credit quality. The Recurring Deposit offered by Shriram City Union Finance has a term of 12 to 60 months. On 60-month Recurring Deposits, Shriram City pays an attractive 8.50 per cent interest rate. At the time of booking, RD customers can choose between Auto Refund and Conversion to Fixed Deposit option too.
Period (months) | Rate % (p.a. at Monthly rests) | Maturity value for Monthly installment of Rs. 500/- |
12 | 7.03 | 6,230 |
24 | 7.12 | 12,930 |
36 | 8.18 | 20,460 |
48 | 8.34 | 28,565 |
60 | 8.50 | 37,500 |
Source: Official website of the NBFCs.
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