Exploring the Pros and Cons of Fixed Deposits – ThePrint – ANIPressReleases

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Shriram Finance, a leading Non-Banking Finance Company (NBFC), offers its flagship investment plan Shriram Unnati Fixed Deposit, designed to meet the diverse needs of investors. With special interest rates for senior citizens and women depositors, Shriram Finance, First aid has successfully consolidated its position as one of the top players in the NBFC sector.

Pros and Cons of Investing in Fixed Deposits

It is always advisable to weigh the pros and cons of opening an FD before investing your funds in a fixed deposit. Here are a few points that will help you make an informed investment decision:

Advantages of Fixed Deposits

* Predictable Returns: Fixed deposits offer predictable returns. Unlike market-linked investments, FDs provide investors with predetermined returns at a fixed interest rate during the investment period. This helps investors plan and manage their finances with confidence.

* Flexible Durations: FDs usually come with flexible duration options, allowing investors to choose the duration that suits their financial goals. Whether short-term or long-term, investors can choose a duration ranging from a few months to a few years, giving them flexibility in aligning their investments with their financial plans.

* Easy Withdrawal: Fixed deposits offer easy withdrawal options, providing financial flexibility in case of emergencies or unexpected expenses. Many institutions allow early or partial withdrawals, allowing you to access your funds before maturity with minimal penalties. This feature ensures that your money remains accessible while earning interest, making FDs a safe and versatile investment option.

* FD Laddering: Laddering involves splitting your investment into multiple fixed deposits of different tenures, allowing you to maintain regular access to funds while enjoying higher interest rates on long-term deposits. As each FD matures, you can reinvest or redeem the funds, ensuring a steady cash flow and reducing the risk of locking in a single interest rate.

Disadvantages of Fixed Deposits

* Lower Returns Compared to Market-Linked Investments: While fixed deposits offer predictable returns compared to market-linked investments, the returns are comparatively lower compared to stocks and/or equity mutual funds.

* Limited Liquidity: Fixed deposits come with a lock-in period that limits access to funds until maturity. While early withdrawals are possible, they often incur penalties and reduce overall returns.

How Shriram Unnati Is Innovating the Fixed Deposit Investment Industry

Shriram Unnati Fixed Deposit, one of the core products of Shriram Finance, has radically changed the way investors look at FDs.

Here are some of its key features and benefits:

* One of the Highest Interest Rates: Customers, Enjoy high interest rates on FDs Up to 9.40%* APR with Shriram Finance (including 0.50% APR for senior citizens and 0.10% APR for women depositors).

* High Credit Ratings: FD from Shriram Finance is rated as “(ICRA)AA+ (Stable)” by ICRA and “IND AA+/Stable” by India Ratings and Research, making it a reliable option for investment.

* Flexible Maturities: With Shriram Unnati Fixed Deposit, investors can choose from maturity options ranging from 12 to 60 months and tailor their investments to specific financial goals.

* Intuitive Digital Platform: Shriram Finance offers a seamless customer experience with its seamless and secure digital platform. Customers can seamlessly manage their FDs on this trusted NBFC website.

Shriram Finance It is a leading diversified financial services company in India and offers a wide range of financial products and services across consumer, wholesale and business finance segments. The company has a strong presence across India with a branch network of 3,082 and a workforce of 74,645 serving 83.97 lakh customers. With a focus on financial inclusion and customer centricity, Shriram Finance continues to enable individuals and businesses to achieve their financial goals.

Regarding the deposit taking activities of Shriram Finance Limited (‘SFL’), viewers may refer to the detailed information and Terms and Conditions contained in our application form available at: www.shriramfinance.in/downloadsThe company has a valid Certificate of Registration dated 31st January, 2023 issued by the Bank under Section 45-IA of the RBI Act. However, the Reserve Bank of India does not accept any responsibility or warranty regarding the financial soundness of the company or the accuracy of any statement or representation made by the company or the opinions expressed therein and the current status regarding repayment of deposits/discharge of liabilities by the company.

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