Home / Money / Personal Finance /  Sundaram Home Finance hikes AAA-rated FD rates, senior citizens get up to 8%

With a comprehensive range of financial services and products, Sundaram Finance Limited has raised interest rates on fixed deposits under 2 crore. The bank has stated that the higher rates will go into effect on February 1st, 2023. The FD interest rates have risen for the 5th time so far this fiscal year or FY23. The corporation increased rates across a range of tenors and in response to the upward revision of the interest rate, enabling senior citizens to get up to 8% and the general public to receive up to 7.50%.

Sundaram HFC FD Rates

For non-senior citizens, the rates on 1, 2, and 3-year deposits have increased to 7.20% p.a. from 7.15%, 7.50% from 7.15%, and 7.50% from 7.30%. The corporation has not increased the interest rates on deposits for 4 and 5 years of tenors. For Trusts, the company has increased the rates to 7.20% per annum from 7.15%, 7.50% per annum from 7.15% and 8% per annum from 7.80% on 1, 2 and 3-year deposits. The corporation increased interest rates on deposits made by senior citizens for two years by 50 basis points, from 7.50% to 8% annually. The interest rate on deposits for one year and three years has been raised from 7.50% to 7.70% annually and from 7.80% to 8%, respectively.

Lakshminarayanan Duraiswamy, MD, Sundaram Home Finance said “Depositors have reacted positively to the over 2% upward revision in our FD interest rate this year with our gross mobilizations having crossed Rs. 350 cr."

Deposits will be accepted in multiples of Rs. 1,000 subjects to a minimum amount of Rs. 10,000 per account at Sundaram Home Finance. Fixed deposit customers should be aware that Sundaram Home Finance fixed deposits have been rated [ICRA]AAA (Stable) by ICRA and holds an industry benchmark for depositor servicing.

Sundaram Home Finance has also mentioned on its website that “Our PLR is revised by 30 basis points effective January 01, 2023."

On disbursements of Rs. 1740 crores during the first half of this year, Sundaram Home Finance reported a net profit of Rs. 97.5 crores. A leading provider of home loans, plot loans, loans for home improvements and extensions, and loans secured by property, Sundaram Home Finance is a fully-owned subsidiary of Sundaram Finance Ltd. Small business loans are currently offered by the organisation, which has about 110 branches.

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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