Today we will talk about whether Shriram Fixed Deposit is a good and safe investment or not. In Shriram Fixed Deposit, you are getting much more interest than banks. So is Shriram Fixed Deposit a good investment opportunity for you? Or is it just a trap to lure investors?
Fixed Deposit has always been considered a safe investment. And most middle-class families in India also like to invest in Fixed deposits. In such a situation, Shriram is giving a very good return on Fixed deposits. In 2022, Shriram is giving about an 8.90% interest rate on Fixed Deposits. Shriram is a Transport Finance Company or also known as a Commercial Banking Company. Shriram is a good company and earns good profits too.
But in India people prefer to keep money in banks instead of finance companies because the bank is a safe place where we can invest our money. Especially people who like to open fixed deposits by public sector banks such as SBI and PNB. But in 2022, almost all banks have drastically reduced their interest rates. In such a situation, people are turning to fixed deposits from finance companies.
But is Shriram Fixed Deposit a safe investment? Today we will talk about all these topics. People from outside want to invest in Shriram Fixed Deposit, then should they invest their hard-earned money in Shriram Fixed Deposit or should they keep money in banks only? If we talk about banks, right now IndusInd Bank is paying the highest interest on fixed depositors. IndusInd Bank is giving around 7.50% annual interest to its customers. But IndusInd Bank is also a private sector bank.
The rest of the banks are offering interest of less than 6%. But if you are thinking that your money is safe in the bank then you are thinking wrong.
Let’s assume that you have an account in ABC Bank and there you have a fixed deposit of 10 lakhs. And if the bank becomes bankrupt, then in such a situation you will be able to get only the amount of up to 5 lakhs. Bank deposit insurance cover upped to Rs 5 lakh, a refund in 90 days. By the way, you have many other investment options which are absolutely safe. Like you can deposit money in the post office. The post office is 100% owned by the Indian government. So in such a situation, the risk in post office investment is negligible.
RBI floating rate saving bonds
RBI is known as a floating rate saving bond because it is issued by RBI. Therefore, you can also invest in RBI bonds. In RBI floating rate saving bonds, you are getting 7.15% interest now, which is paid to your bank account after every 6 months. RBI floating rate saving bonds have a lock-in period of 7 years, so you cannot redeem these bonds before 7 years. Also, these bonds are not traded in the stock market or secondary market, so you cannot sell them either. You have to wait a long time of 7 years to get them redeemed.
Is Shriram Fixed Deposit safe?
You can get an interest rate of up to 8.90% in Shriram Fixed Deposit. Up to 0.50%, extra interest is being offered to senior citizens in Shriram Fixed Deposit.
The Shriram Fixed Deposit has a Crisil rating of ‘FAAA’ which is the highest rating possible. It, thus, indicates the highest degree of safety with the capital to be invested and minimal risk associated. But Shriram’s Fixed Deposit is not secure. In the bank, you are given an insurance cover of up to 5 lakhs by DICGC but this is not the case in Shriram Fixed Deposit. That’s why you should not invest all your money in one company.
If Shriram Company becomes bankrupt then Shriram will not be obliged to return your money. That’s why you should invest only some amount in Shriram. By the way, rating companies have given a good rating to Shriram and the risk in investing is not high.
You should diversify your investments. You should invest some money in Mutual Funds, Equity (Stock Market), Gold, and Bonds. By the way, Shriram’s Fixed Deposit is not a loss-making deal.