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Why Shriram Fixed Deposit Stands Out as the Best Investment Choice for Women
Fixed Deposits (FDs) are widely recognized as a secure investment option, particularly favored by women, with 58% expressing a preference for FDs, Public Provident Funds (PPF), or savings accounts. This preference is driven by diverse financial goals, liquidity needs, and investment capabilities unique to women. FDs provide flexibility in tailoring payouts to meet specific financial requirements, offering more attractive interest rates compared to savings accounts.
Shriram Fixed Deposit stands out by offering high-interest rates, reaching up to 9.20%* p.a., inclusive of special benefits for women depositors and senior citizens. The Shriram Fixed Deposit Interest Calculator aids in determining the exact interest amount. For those new to investments or unsure about available options, FDs provide a secure path to safeguard financial futures.
Why is FD a Smart Investment? Fixed deposits are considered a smart investment due to their high degree of safety and low risk. The guaranteed predetermined returns, regardless of market performance, make FDs stand out in comparison to riskier options like stocks and mutual funds.
Types of Fixed Deposits: FDs come in two types: cumulative and non-cumulative. Cumulative FDs pay out at maturity with compounded interest, while non-cumulative FDs offer regular payouts, usually monthly, quarterly, half-yearly, or annually, with simple interest.
Comparing FDs with National Savings Certificate (NSC): While NSCs provide stable income, FDs offer higher liquidity, allowing withdrawal in emergencies with nominal charges. FDs, especially for female investors, are preferable due to hassle-free transactions and high liquidity.
Rule 72: Doubling Your Investment: The Rule 72 helps estimate the time it takes for an investment to double by dividing 72 by the annual interest rate. This rule provides clarity on the doubling of an investment over time.
Advantages of FDs Over Other Investments: FDs offer fixed interest rates, shielding from market fluctuations. Highly liquid, allowing withdrawals as needed. Various tax benefits and insurance coverage. Tax-saver FDs with a 5-year lock-in for deductions under Section 80C. Loan facilities available for emergencies.
Shriram Fixed Deposit for Women: Shriram Finance's FD scheme tailored for women investors offers several advantages. These include higher interest rates, flexible tenures (12 to 60 months), low minimum investment (Rs. 5,000), regular or cumulative interest payments, and a loan facility at attractive rates. With Shriram Unnati Fixed Deposits offering rates up to 9.20%* p.a., they provide a secure and lucrative investment opportunity for women seeking steady returns while minimizing risks. In conclusion, Shriram fixed deposits for women present a wise investment choice with attractive interest rates, flexible tenures, and additional benefits. Invest wisely with Shriram fixed deposits.
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What is a Company Fixed Deposit – Is it Safe to Invest?
Are you seeking information on the safety of investing in a company fixed deposit? With the advancement of prominent Non-Banking Financial Companies (NBFCs) like Shriram, a corporate fixed deposit is deemed secure and lucrative.
This article aims to provide clarity on the safety of investing in a company fixed deposit and why it is considered a reliable investment option.
In India, a company fixed deposit stands out as one of the most advantageous FD schemes available for investment. It allows investors to diversify their funds and construct a secure and profitable investment portfolio. Despite the existence of various market-dependent investment options, a company fixed deposit yields returns comparable to a select few, such as stocks, Mutual Funds (MFs), and Systematic Investment Plans (SIPs).
Definition of a Company/Corporate Fixed Deposit: A company fixed deposit is a variety of fixed deposit provided by NBFCs, manufacturing firms, and housing finance ventures. It represents a dependable investment option facilitating seamless wealth growth. Also known as a corporate fixed deposit, it is regulated by Section 58 A of the Companies Act, 2013.
Corporate/company FDs offer interest rates up to 3% higher than most banks. Shriram, for instance, provides an attractive interest rate of up to 9.20%* p.a., including an additional interest rate of 0.50%* p.a. for senior citizens and 0.10%* p.a. for women depositors.
Considering prevailing market conditions and uncertain returns, a corporate fixed deposit enables individuals to safeguard their future and establish financial goals with fixed and assured returns. Shriram's fixed deposit is secure, boasting an "IND AA+/Stable" rating by India Ratings & Research and "[ICRA]AA+ (Stable)" by ICRA, indicating high credit quality and safety.
Is Investing in a Company/Corporate Fixed Deposit Safe? Recognizing that money does not grow on trees, individuals can contribute to its growth through a sound savings plan. A corporate fixed deposit serves as an investment strategy that aids in multiplying wealth and doubling hard-earned savings.
The reliance solely on banks for safety and reliability is a thing of the past. A corporate fixed deposit mirrors a bank fixed deposit but offers higher returns with lower risk. Furthermore, NBFCs providing company fixed deposit schemes are assessed for safety by Credit Rating Information Services of India Limited (CRISIL), Investment Information and Credit Rating Agency of India Limited (ICRA), and India Ratings & Research. Consequently, a corporate FD is associated with a high degree of safety.
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Everything You Know about FD in India
The article emphasizes the simplicity and lack of technical complexities associated with fixed deposit (FD) schemes, as opposed to equity or mutual fund investments. It highlights that fixed deposits are commonly offered by banks and other reputable lenders, making it essential for individuals to comprehend all aspects related to these schemes.
The article aims to provide insights into the fundamentals and key considerations when selecting an appropriate fixed deposit scheme.
Understanding Fixed Deposits (FDs): A fixed deposit, as the name suggests, comes with a predetermined tenure and represents an investment vehicle offered by banks and financial lenders. In this arrangement, individuals invest a sum of money for a fixed term and receive a fixed return.
FDs are attractive due to their higher returns compared to regular savings accounts, with additional benefits for senior citizens. The duration and principal amount play a crucial role in determining the interest offered by the lender.
While funds remain locked in until maturity, some lenders permit premature withdrawals for specific emergencies, albeit with a penalty.
Types of Fixed Deposit Schemes: The article categorizes fixed deposit schemes into two types:
Cumulative Fixed Deposit:
Accrues compounding benefits.
Interest and principal are received upon maturity.
Suitable for those not seeking periodic payouts.
Non-cumulative Fixed Deposit:
Offers regular income with the flexibility to choose interest payout periods.
Interest is transferred periodically.
Ideal for individuals seeking periodic cash returns.
Pros and Cons of Fixed Deposits: Pros:
Safe and secure with minimal risk.
Fixed income unaffected by market volatility.
Fixed tenure with a rollover facility.
Can be used as collateral during emergencies.
Allows choosing interest payout frequency.
Cons:
Lower returns compared to equity investments.
Taxable interest income.
Penalties for premature withdrawal.
Choosing the Right Fixed Deposit Plan: Selecting an appropriate fixed deposit plan depends on various factors. Key considerations include:
Interest Rate:
Varies among lenders.
Private lenders may offer higher rates.
Interest Rate for Senior Citizens:
Higher rates offered to senior citizens.
Minimum FD Investment:
Lenders usually have a minimum investment requirement.
Tenure:
Flexible options ranging from 12 to 60 months.
Auto-Renewal Facility:
Allows reinvestment of maturity amount.
Premature Withdrawal Facility:
Subject to penalties; terms vary.
Interest Payout Frequency:
Available for non-cumulative FDs.
Nomination Facility:
Allows specifying beneficiaries.
Taxability of FD Interest: FD interest income exceeding ₹10,000 in a financial year is tax-deductible. Tax deduction depends on the individual's income tax slab, and Form 15G or 15H can be filed to avoid TDS deductions for those below the tax brackets.
Conclusion: The article concludes by summarizing the key considerations for choosing the right fixed deposit plan. It highlights the importance of fixed deposits as a safe and secure investment option and encourages readers to explore the plans offered by Shriram Finance, emphasizing a hassle-free process and minimal documentation.
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