Revised interest rates effective July 2 strengthen Shriram Finance's deposit offerings, with additional benefits continuing for senior citizens, women investors and loyal customers.

Shriram Finance Ltd., one of India's largest retail-focused non-banking financial companies (NBFCs), has announced a revision in its Fixed Deposit (FD) interest rates, increasing returns by 5 to 25 basis points (bps) across selected tenures. The revised rates will be effective from July 2, 2026, making the company's deposit schemes more attractive for investors seeking stable and predictable income.

The move comes at a time when competition for retail deposits remains intense across banks and NBFCs. By offering higher interest rates on medium- and long-term deposits, Shriram Finance aims to strengthen its liability franchise while providing customers with improved investment opportunities in a relatively stable interest rate environment.

The company has also retained additional interest benefits for senior citizens, women depositors and customers renewing their matured deposits, further enhancing the effective returns available to eligible investors.

Higher Interest Rates Across Key Deposit Tenures

Shriram Finance has revised rates across multiple deposit tenures, with the biggest increase seen in long-duration fixed deposits.

Revised Fixed Deposit Rates

• 12-Month FD: Increased to 6.85% from 6.75%

• 24–35 Months: Increased to 7.10% from 7.05%

• 36–60 Months: Increased to 7.50% from 7.25%

The revised rates are applicable on deposits of up to ₹10 crore, making them suitable for both retail investors and high-net-worth individuals seeking fixed-income investments.

The higher rates improve the attractiveness of longer-tenure deposits, allowing investors to lock in better returns over an extended period.

Fixed Investment Plan Also Offers Better Returns

Alongside traditional fixed deposits, Shriram Finance has also enhanced returns under its Fixed Investment Plan (FIP).

Under the revised structure:

• Deposits with a tenure of 36–48 months will now earn 7.50%, compared to 7.25% earlier.

• Shorter-tenure FIP products have also received rate increases of up to 10 basis points.

The company expects these revisions to encourage customers to diversify their fixed-income investments while opting for longer investment horizons.

Additional Benefits Continue for Special Categories

Shriram Finance has retained its special incentive structure for selected customer segments.

Senior Citizens

Senior citizen investors will continue to receive an additional 50 basis points over the applicable fixed deposit rates, making the scheme particularly attractive for retirees seeking regular income.

Women Depositors

Women investors remain eligible for an additional 5 basis points on both fixed deposits and Fixed Investment Plans.

Renewal Customers

Customers who renew their matured fixed deposits will continue to receive an additional 15 basis points, rewarding long-term relationships with the company.

These additional benefits increase the effective yield available to eligible investors.

Why Are NBFCs Increasing Deposit Rates?

The latest rate hike reflects the evolving funding environment across India's financial sector.

Several factors are encouraging banks and NBFCs to improve deposit offerings:

• Growing demand for retail and business loans.

• Need for stable long-term funding.

• Increased competition among financial institutions.

• Rising focus on retail deposit mobilisation.

• Maintaining healthy liquidity levels.

Higher deposits provide financial institutions with a reliable funding base for future credit growth while reducing dependence on wholesale borrowing.

Fixed Deposits Continue to Be a Preferred Investment Option

Despite increasing interest in equity markets and mutual funds, fixed deposits continue to remain one of India's most popular investment instruments.

Their popularity is driven by several advantages:

• Guaranteed returns.

• Capital preservation.

• Fixed tenure options.

• Predictable cash flows.

• Minimal market risk.

• Simple investment process.

For conservative investors, retirees and those seeking regular income, fixed deposits remain an important part of a diversified financial portfolio.

Interest Rate Environment Supports Fixed-Income Investments

The current interest rate environment has created favourable conditions for fixed-income investors.

Several financial institutions have revised deposit rates in recent months to remain competitive and attract long-term savings.

For investors, this provides an opportunity to secure relatively higher returns while protecting capital against market volatility.

Choosing the Right Deposit Tenure

Financial planners advise investors to select deposit tenures based on their financial goals and liquidity requirements.

Short-Term Deposits

Suitable for:

• Emergency funds.

• Near-term expenses.

• Liquidity requirements.

Medium-Term Deposits

Ideal for:

• Planned expenditures.

• Wealth preservation.

• Balanced returns.

Long-Term Deposits

Best suited for:

• Retirement planning.

• Long-term wealth accumulation.

• Stable income generation.

Locking in higher long-term rates may prove beneficial if interest rates soften in the future.

Factors Investors Should Evaluate

Before investing in any fixed deposit scheme, investors should consider:

• Interest rate offered.

• Financial strength of the issuer.

• Credit ratings.

• Premature withdrawal rules.

• Interest payout frequency.

• Tax implications.

• Liquidity requirements.

Comparing multiple issuers can help investors identify the most suitable option for their financial objectives.

Outlook for India's Deposit Market

The Indian deposit market is expected to remain highly competitive over the coming months.

As loan demand continues to rise and financial institutions expand their lending activities, deposit mobilisation will remain a key strategic priority.

This could result in:

• More competitive FD rates.

• Innovative deposit products.

• Enhanced customer incentives.

• Greater focus on retail savings.

Investors may benefit from improved returns as institutions continue competing for stable funding sources.

Outlook

Shriram Finance's latest fixed deposit rate revision reflects the company's commitment to offering competitive savings products while strengthening its long-term funding base. The increase in interest rates across key tenures, combined with additional benefits for senior citizens, women and loyal customers, enhances the appeal of its fixed-income offerings. As investors continue seeking stable returns amid evolving market conditions, high-quality NBFC fixed deposits remain an attractive option for those prioritising capital protection and predictable income.