Sundaram Finance Limited, which offers a wide range of financial services and products, has increased interest rates on fixed deposits under Rs. 2 crore. According to the bank, the new, higher rates will take effect on February 1st, 2023. This fiscal year, or FY23, has seen a total of five increases in FD interest rates. In reaction to the interest rate’s upward revision, the corporation raised rates across a range of tenors, allowing elderly citizens to receive up to 8% and the general public to get up to 7.50%.
The rates on 1, 2, and 3-year deposits for non-senior citizens have increased to 7.20% p.a. from 7.15%, 7.50% from 7.15%, and 7.30% from 7.30%, respectively. For tenors of 4 and 5, the corporation has not raised the interest rates on deposits. For Trusts, the business raised the rates on 1, 2, and 3-year deposits to 7.20% annually from 7.15%, 7.50% annually from 7.15%, and 8% annually from 7.80%. The company raised the interest rate on deposits from elderly citizens for a two-year period from 7.50% to 8% yearly, an increase of 50 basis points. The annual interest rate for one-year and three-year deposits has increased from 7.50 percent to 7.70 percent and from 7.80 percent to 8%, respectively.
“Depositors have responded favourably to the over 2% increase in our FD interest rate this year with our total mobilisations having crossed Rs. 350 cr.,” said Lakshminarayanan Duraiswamy, MD of Sundaram Home Finance.”
Deposits at Sundaram Home Finance will be accepted in multiples of Rs. 1,000 with a minimum of Rs. 10,000 per account. Customers of fixed deposits should be informed that Sundaram Home Finance fixed deposits hold an industry standard for depositor servicing and have been rated [ICRA]AAA (Stable) by ICRA.
On their website, Sundaram Home Finance also states, “Our PLR is amended by 30 basis points from January 1, 2023.”
Sundaram Home Finance reported a net profit of Rs. 97.5 crores for the first half of this year on disbursements of Rs. 1740 crores. Sundaram Home Finance, an industry leader in house loans, plot loans, loans for home extensions and renovations, and loans secured by property, is a wholly owned subsidiary of Sundaram Finance Ltd. Currently, the organisation, which has roughly 110 offices, provides small business loans.