10.77% Shriram Transport Finance Fixed Deposit Scheme 2019 – Should you invest?
Shriram Transport Finance Fixed Deposit Scheme 2019 – Review
We have been reviewing some of the corporate fixed deposit schemes in the last 2 months. Shriram Transport Finance FD Scheme offers highest interest rates upto 9% where one can get yield up to 10.77%. Banks are currently offering 5.5% to 7% interest rates. Shriram Transport Finance Fixed Deposit rates are far higher compared to Bank FDs. What are the features of Shriram Transport Finance FD Scheme? What are the interest rates offered by Shriram Transport Finance Fixed Deposit Scheme in 2019? Is Shriram Transport Finance FD Safe? Should you invest in Shriram Transport Finance Fixed Deposits or avoid?
About Shriram Transport Finance Limited
Shriram Transport Finance Company Limited (STFC) is an asset financing non-banking finance company. The Company is engaged in providing finance for commercial vehicles and other loans. The Company operates through financing segment. The Company operates through a network of approximately 850 branches. This is part of Shriram Group, founded by R Thyagarajan.
Features of Shriram Transport Finance Fixed Deposits (STFC FD)
Here are the key features of this FD scheme.
1) Shriram Transport Finance FD comes with 12 months to 60 months tenure.
2) This FD scheme offer cumulative and non cumulative plans. In cumulative plan, the interest would be paid on maturity. In non cumulative plan, interest would be paid monthly, quarterly, half-yearly and yearly based on the option chosen.
3) You can deposit a minimum of Rs 5,000 and in multiples of Rs 1,000 thereon in this fixed deposit scheme.
4) Interest rates are ranging between 7.95% to 9% for general category. These are revised from 1st November, 2019.
5) Senior Citizens (60 years and above) would get 0.25% higher interest rates. Means they would get up to 9.25% interest rates.
6) Shriram Transport Finance Limited employees and their relatives would get 0.15% higher interest rates compared to other individuals.
7) One good feature is that you can open Shriram Transport Finance FD Online and renew them online. If you renew online, you would get 0.25% higher interest rates compared to existing rates.
What are the Shriram Transport Finance FD Interest Rates in 2019?
It offers 12 months to 60 months tenure FDs where one would get interest rates up to 9%. Here are the details of interest rates of this FD scheme for general category. Shriram Transport Finance FD rates in 2019 for Senior Citizens would be 0.25% extra compared to others and Shriram Transport Finance employees and their relatives would get 0.15% extra.
I) Shriram Transport Finance FD Rates for 2019 for 12 to 60 months w.e.f 1-Nov-2019
II) Shriram Transport Finance FD Interest Rates for Specific Tenure in 2019 w.e.f 1-Nov-2019
Who is eligible to open a Shriram Finance FD?
The following are eligible to open this FD.
1) Resident Indians
3) Partnership Firms
4) Hindu Undivided Family (HUF)
5) Unincorporated Association or Body of Individuals
6) Trust & Foundation
How to Open Shriram Transport Finance Fixed Deposit Online?
You can login to this link https://shricos.stfc.me/cos/cos_ui/# and open fixed deposit. If you do not have the login and password, you need to first register at same link.
What documents are required to open Shriram Transport Finance Fixed Deposit Scheme?
You need to provide any of the following ID proofs.
b) PAN Card
c) Driving License
d) Voter Id
e) Job Card by NREGA
f) Aadhaar Card
You need to provide any of the following Address proofs.
b) Driving License
c) Voter Id
d) Job Card by NREGA
e) Aadhaar Card
f) Pension Payment order
g) Property/Municipal Tax Receipt
h) Bank Pass book/Bank Statement
i) Accommodation Letter from Employer
j) Documents by Foreign Authorities
k) Latest Utility Bill of any service provider (electricity, telephone, postpaid mobile phone, piped gas, water bill).
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Why to invest in this FD scheme?
Here are some positive factors about this fixed deposit scheme.
1) Shriram Transport Finance is part of the Shriram Group, which is a trusted brand.
2) You can get higher interest rates up to 9% for regular investors and 0.25% extra for Senior Citizens. You can get yield up to 10.77% + 0.25% extra for Senior Citizens.
3) You can invest in this FD scheme with a minimum of Rs 5,000 and in multiples of Rs 1,000 thereof.
4) This Shriram Transport FD has a good credit rating of “FAAA/Stable” from a crisis that indicates a high degree of safety. These are rated as “MAA+/Stable” by ICRA, which indicates the high credit quality of the investment.
5) You can open this FD online and renew it online. This would make your life easier.
Why NOT to invest in this FD scheme?
Here are some negative points.
1) NBFC sector is yet to come out of the current crisis and your investment could high risk.
2) Corporate FDs does not offer any security. In case of company gets windup for some reason, FD investors would get preference like any other creditors and repayment would happen in normal process. There would not be any preference given to FD investors.
3) Premature withdrawal rules make it unattractive.
Some of the FAQs about this FD Scheme
1) How can I calculate the interest amount?
You can visit Shriram Transport Finance FD calculator link which can help you to know the interest amount. Based on the option and tenure chosen, the interest amount would differ. However, if you are looking for a Shriram Transport Fixed Deposit Calculator where you can input manually on investment amount, tenure and rate of interest, you can try this calculator. https://www.shriraminsight.com/FdCalculator.aspx
2) What is Shriram Transport Finance FD Credit Rating?
You might be wondering “is Shriram Transport Finance FD safe”. You need to check the FD credit rating that can talk about its fundamentals. Crisil has rated these fixed deposits as “FAAA/Stable” that indicates a high degree of safety. ICRA rates this FD as “MAA+/Stable”, which indicates the high credit quality of the fixed deposit scheme.
3) How the Interest received on these FDs is taxed?
Shriram Transport Finance would deduct TDS on interest exceeding Rs 5,000 per annum. However, one need to calculate total interest received and pay income tax based on the income tax slab applicable to them in that year.
4) Can fixed deposit be made in the name of Minor?
Yes. You can make a deposit in the name of any minor, provided such minor is represented by his natural or legal guardian and the Application Form for the deposit is signed by the natural/Legal Guardian, on behalf of the minor. All communication in relation to the deposit shall be addressed to the guardian.
5) Can I make deposits in joint name along with my spouse?
Yes. You can make a fixed deposit in the joint name along with your spouse.
6) Can I take a premature withdrawal of my FD?
One can take a premature withdrawal of such FD only after 3 months from the date of deposit or from the renewal of deposit. If you wish to break the FD between 3 to 6 months after opening FD, no interest would be paid to you. If you wish to break FD after 6 months of opening FD but before the maturity date, you would get 2% lower interest rate.
7) When the interest payment would be done for non cumulative deposits?
In case of non cumulative deposits, interest would be paid on the last day of the month or quarter or half year or year based on the scheme and option chosen.
8) Where can I get Shriram Transport Finance FD Application Form?
You need to login to customer portal to check the FD application form. You can check the login link at their home page of the website.
9) Can we submit Form-15G or Form-15H?
Yes. Individuals can submit a form 15G or 15H to the company to not to deduct TDS on their FD interest.
10) In an emergency, can I get a loan against my FD?
Yes. You can get loan on this FD scheme with certain terms and conditions. You can get loan after 3 months from the date of opening FD. One can request for the loan on this FD which would be up to 75% of the fixed deposit amount. The interest rate on such loan would be 2% higher than the FD interest rate.
11) Can NRI’s invest in this FD Scheme?
No. NRI’s cannot invest in this Fixed Deposit.
12) If I am an existing customer, would I get extra interest?
No. They would not get any extra FD interest.
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13) What are the Shriram Transport Finance FD customer care details?
You can reach at any of the following details for queries or complaints.
i) You can fill the form “contact-us” form and they would call you back.
ii) You can reach them at Tel. No.: +91 22 4095 9595
Should you invest in Shriram Transport Finance FD Scheme in 2019?
Shriram Transport Finance is part of the Shriram Group, which is a trusted brand. Its FDs have good credit rating from Crisil and ICRA. It offers highest interest rates where you can get up to 10.77% yield. If you are Senior Citizens, you can get 0.25% extra interest. One should consider the NBFC crisis going on now. FD’s does not offer any security the way Secured NCDs offer to some extent. If you are a high risk investor and willing to consider these risks, you can invest in this FD Scheme and enjoy high interest rates. If you are a low risk investor, stay away from such FD schemes.
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Shriram Transport Finance Fixed Deposit Scheme 2019 Review