Before Diwali, customers of Shriram City Union Finance have got a special gift. The company on Thursday announced to increase the interest rates available on fixed deposits (FD). Under this, customers will be given 5 to 25 basis points more interest on fixed deposits of all tenors.
Special gift for women and senior citizens
The company has made a special announcement for women, under which an additional 10 basis points interest will be paid to them on all FDs. Apart from this, senior citizens will also get additional interest. Senior citizens will be given 50 basis points more interest on all FDs annually. Also, 25 basis points higher interest will be given annually on all renewals of the Matured Deposit.
The customers of Non-Banking Finance Company i.e. NBFC will start getting the benefit of the increased interest rates from October 14. The new interest rates are for FDs with tenures ranging from 12 months to 60 months. Let us tell you that the company is present in 23 states, where it has more than 900 branches. The number of customers of Shriram City is close to 41 lakhs.
Private sector HDFC Bank has also increased the interest rates on FDs below Rs 2 crore. The bank has announced an increase of 75 basis points in FD interest rates. The new rates have come into effect from 11 October 2022. Apart from this, AU Small Finance Bank also increased the interest rates on its FDs.
Effect of rising repo rate on banks
Actually, due to the increase in the repo rate by the Reserve Bank of India (RBI), many banks are changing the interest rates of their loans and FDs. RBI increased the repo rate for the fourth time in a row in September. With the repo rate increasing by 50 basis points, it has reached 5.9 percent. There has been an increase of 1.90 percent in the repo rate since May.
