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Business News/ Money / Personal Finance/  2 high rated NBFCs offering inflation-beating returns up to 8.50% on RDs
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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.

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.Premium
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.

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 monthsInterest rate p.a.
127.03%
247.12%
368.18%
488.34%
608.50%

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/-
127.036,230
247.1212,930
368.1820,460
488.3428,565
608.5037,500

Source: Official website of the NBFCs.

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ABOUT THE AUTHOR
Vipul Das
Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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Published: 25 May 2022, 04:41 PM IST
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