This fixed deposit (FD) rated AAA for the past 30 years revises interest rates

Sundaram Finance is a well-known Non-Banking Financial Company (NBFC) with nearly 640 branches across the country. The company's fixed deposits are currently rated "AAA" (Highest Credit Quality) by ICRA and CRISIL and have been for the past 30 years. The corporation revised interest rates on its fixed deposit scheme on June 10, 2022, and now provides up to 6.65 per cent return to regular customers and 7.15 per cent return to senior citizens. A deposit of Rs. 10,000/- per account is mandatory to earn interest at monthly/quarterly intervals by Sundaram Finance.

Sundaram Finance FD Rates

The company offers a fixed deposit for a period of 12 to 36 months under the non-cumulative option. The corporation provides a monthly interest rate of 5.97 per cent to 6.61 per cent to regular customers, and a quarterly interest rate of 6.00 per cent on 12-month deposits, 6.30 per cent on 24-month deposits, and 6.65 per cent on 36-month deposits. Senior citizens, on the other hand, will get monthly interest rates of 6.47 per cent, 6.76 per cent, 7.11 per cent, and quarterly interest rates of 6.50 per cent, 6.80 per cent, and 7.15 per cent on deposits maturing in 12 months, 24 months, and 36 months.

Cumulative Deposits

The cumulative option, as the name implies, pays the accumulated interest along with the principal at maturity. Sundaram Finance gives senior citizens a quarterly interest rate of 6.50 per cent on 12-month deposits, 6.80 per cent on 24-month deposits, and 7.15 per cent on 36-month deposits on cumulative fixed deposits. Under the cumulative option, the general public will get interest rates of 6.00 per cent, 6.30 per cent, and 6.65 per cent on deposits of 12 months, 24 months, and 36 months, respectively.

Sundaram Finance provides two alternatives for the maturity of deposits: renewal of deposits or maturity payment. According to the guidelines of the company, customers can renew their deposits from the date of maturity only if renewal instructions are received within 2 months of the maturity date, or else they can take the maturity amount. In addition, in the event of an emergency, a depositor can withdraw his or her money prematurely by incurring a penalty; however, in the event of a depositor's death, withdrawals can be withdrawn without penalty.