Shriram City Union Finance Fixed Deposit
Shriram City offers fixed deposit schemes that are packed with benefits. The deposits are rated as AA+ by CARE, signalling reliable products.
The deposit schemes provide flexibility in choosing tenure and amount, and interest is paid out regularly as per deposit rules.
There is 0.30% p.a. additional interest for senior citizens. On the maturity of deposits, if it is renewed, there is an additional interest rate of 0.25% p.a. The minimum deposit is Rs.5,000.
Key Features of Shriram City FD
- Attractive interest rates and choice between cumulative and non-cumulative schemes.
- Fast processing and approval.
- Online registration.
- AA+ credited by CARE.
Different Fixed Deposit Schemes from Shriram City Union Finance
Shriram City currently offers two fixed deposit products - cumulative fixed deposit and non-cumulative fixed deposit. .
- Cumulative fixed deposit: In a cumulative fixed deposit, the interest earned is compounded together with the principal over the duration of the investment. Interest will not be paid in instalments. Instead, it will be paid solely with the principal amount when the loan matures. Shriram City takes investments only in multiples of Rs.1,000, with a minimum deposit of Rs.5,000.
- Non-Cumulative fixed deposit: This type of fixed deposit is for individuals or retirees who wish to earn a steady income regularly. The interest is paid on a monthly, quarterly, half-yearly, and yearly basis. These deposits must be made in multiples of Rs.1,000, with a minimum deposit of Rs.5,000.
Eligibility for Opening Shriram City Union FD
Shriram City FD scheme can be availed by Indian citizens falling under the following categories - individuals, Hindu Unified Families (HUF), firms, trusts, corporates, senior citizens and minors.
Documents Required to Open Shriram City FD
New customers are required to verify their identity by submitting one of the following documents:
- Passport
- PAN card with address proof
- Driver's license
- Aadhar card
- Voter ID card
- Passport size photographs
- Cancelled cheque leaf
Customers are also required to submit a different proof of residence if their present address does not match that on the identity documents as listed above.
Interest Rates on Shriram City FDs
SCUF offers both cumulative and non-cumulative fixed deposits. The interest rates effective from 1 October 2020 are given below:
- Cumulative deposits: Interest rates range from 6.31% to 7.48% p.a. at monthly rests for deposit tenures ranging from 1 year to 5 years. The effective yield per annum ranges from 6.50% to 9.05% p.a.
- Non-cumulative deposits: Interest rates range from 6.50% p.a. to 7.75% for yearly instalments. Different rates are applicable for monthly, quarterly, half-yearly and annual payment schemes for tenures ranging from 1 year to 5 years.
Special Rates for Senior Citizens
Senior citizens will generally receive an additional 0.40% rate of interest on any chosen FD product. However, some schemes may provide even higher rate of interest. The current interest rates for senior citizens ranges from 7.65% to 8.80% p.a. for non-cumulative deposits, while the interest rate lies between 7.65% to 10.34% p.a. between the monthly rests and per annum rates for cumulative deposits.
Procedure for Opening Shriram City FD Account
For opening new FD accounts, customers should ensure they meet the eligibility criteria as set by the company. The documents listed in the eligibility section above have to be produced for verification at the time of account opening, along with the completed application form. Online registration is also allowed for new fixed deposit accounts. Customers can fill out and submit their online applications through the dedicated portal.
Taxes on Shriram City FDs
TDS, or Tax Deducted at source, is applicable on interests earned from Shriram City fixed deposit accounts. TDS is applied in two criteria - 20% of overall interest earned for account-holders who have not submitted PAN details, and 10% of interest earned for those who have provided PAN details. TDS is deducted on earnings above Rs.10,000 from interests for both sections of taxpayers as listed above.
Availing loans against Shriram City Fixed Deposit Accounts
Loans are available against SCUF fixed deposits up to a maximum of 75% of the value of the deposit. Loans are provided at the discretion of the company, and the account should have been started not less than 3 months. The rate of interest is 2% over the interest rate quoted in the fixed deposit account.
Premature Withdrawal Criteria
Premature withdrawal is allowed as per the guidelines of the Reserve Bank of India (RBI).
- No repayment if withdrawn within 3 months of account registration (lock-in period).
- No interest if withdrawn between 3-6 months since account inception.
- 2% lower interest than quoted when opening the account if withdrawn 6 months after account opening, but before the maturity date.
FAQs on Shriram City Union Finance Fixed Deposit
- What is the minimum amount for opening a Shriram City fixed deposit account?
The minimum amount required to open a cumulative account is Rs.5,000, while it is Rs.10,000 for non-cumulative fixed deposit schemes. Shriram City Yuva deposits follow the same criteria as above.
- What is the maximum allowable deposit amount for Shriram City Union Finance FD?
No information is available for the maximum allowable deposit amount. In general, if you are looking for high value deposits worth crores, additional permissions have to be sought from the financial institution.
- What are the minimum and maximum tenures on Shriram City fixed deposits?
Shriram City offers fixed deposits for 5 distinct tenures of 12 months, 24 months, 36 months, 48 months and 60 months.
- What is the difference between cumulative and non-cumulative fixed deposit?
The major difference between a cumulative and non-cumulative deposit is in how the interest accumulated is paid out. In a cumulative deposit the interest earned will be compounded and is paid out along with the principal amount on maturity. In a non-cumulative deposit, the interest earned is paid out on either a monthly, quarterly, half-yearly, or annual basis, depending on the depositor's choice.
- Does Shriram City Union Finance offer the same range of tenures for fixed deposits opened online and at the branch office?
The tenures offered by Shriram City Union Finance for deposits opened online are 12 months, 15 months, 24 months, 30 months, 36 months, 45 months, 48 months, and 60 months. For walk-in fixed deposits, which are opened at the branch, the tenures offered are 12 months, 24 months, 36 months, 48 months, and 60 months.
- Are the documents required to open a Shriram City FD the same for individuals and HUFs or other group entities?
No, the list of documents required to open a Shriram City FD is different for individuals and HUFs or other entities. For the full list, please visit the official website of the firm or contact the branch nearest to you.
- What is the procedure to withdraw my Shriram City fixed deposit when it matures?
To withdraw your fixed deposit on maturity, all you have to do is submit the fixed deposit certificate given to you at the time of opening the deposit. This has to be done at the branch office itself.
- What are the modes of deposit available for opening a Shriram City FD?
You can submit the amount you want to deposit in your FD by means of a demand draft or A/C payee cheque made out in favour of Shriram City Union Finance Limited. An application in the prescribed form should also be submitted, which can be downloaded from the official website.
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