Sundaram Home Finance Set To Hike FD Interest Rates from Feb. 1, Check New Rates

Sundaram Home Finance Ltd is all set to introduce new Fixed Deposit (FD) interest rates, according to reports. It has informed that there will be a hike in the interest rates on FDs for the tenor of 1 to 3 years effective from February 1, 2023.

It is worth noting that the latest revision in the FD interest rates will be the fifth upward revision during this fiscal, according to the statement issued by the wholly owned subsidiary of Sundaram Finance Ltd.

Senior citizen can now get an interest rate of 8% p.a. on 2-year deposits after an increase of 50 basis points. Meanwhile, the interest rate for 1-year and 3-year deposits has been hiked to 7.70% from 7.50% and 8% from 7.80%, respectively.
When it comes to Trusts, Sundaram Home Finance hiked the rates on 1, 2, and 3 years deposits to 7.20% from earlier 7.15%, 7.50% from previous 7.15%, and 8%.

For non-senior citizens, the interest rates have been hiked to 7.20% from previous 7.15%, 7.50% from earlier 7.15%, and 7.50% from previous 7.30% on 1, 2, and 3-year FDs.

Meanwhile, Sundaram Home Finance has retained the same interest rates for the tenure of 4-year and 5-year.

Lakshminarayanan Duraiswamy, MD, Sundaram Home Finance said, "Depositors have reacted positively to the over 2% upward revision in our FD interest rate this year with our gross mobilizations having crossed ₹350 crore."

During the first half of FY23, SHFL registered a net profit of ₹97.5 crore on disbursements of ₹1,740 crore.

Sundaram Home Finance fixed deposits have been rated [ICRA]AAA (Stable) by ICRA and holds an industry benchmark for depositor servicing.