Shriram Finance Short Term FD

What is Shriram Finance Short Term FD?

Shriram Finance Short Term FD refers to a fixed deposit scheme offered by Shriram Finance as part of its Unnati FD programme, allowing investors to invest funds for up to one year and earn assured returns via compounding. Standard rates go up to 7.60% p.a., with an additional 0.50% p.a. for senior citizens (aged 60 and above) and 0.05% p.a. extra for women investors. On deposits renewed with Shriram Finance, an additional 0.15% p.a. is also applicable. The scheme supports investors building savings gradually, enabling quicker wealth growth and a reliable income.

Current Interest Rates on Shriram Finance Short Term FD

Shriram Finance FD rates present competitive earnings with different cumulative and non-cumulative interest plans for general investors and senior citizens:

Shriram Finance Cumulative FD Rates

Interest rates applicable for fixed deposits below ₹10 Cr for a 12-month tenure, providing secure returns on maturity:

*Shriram Finance Short Term FD interest rates w.e.f 5 August 2025

Shriram Finance Non-Cumulative FD Rates

Non-cumulative fixed deposit interest rates for investments below ₹10 Cr over a 12-month tenure with regular payout options:

*Shriram Finance Short Term FD interest rates w.e.f 5 August 2025

Key Features of Shriram Finance Short Term FD

Shriram Finance Short Term FD combines attractive returns, flexible investment options, and strong safety standards for reliable income and capital protection:

• Flexible Tenure Options: Depositors may select from multiple tenure options to suit their short or medium-term financial objectives.
• Auto-Sweep Facility: Auto-sweep banking shifts additional money into fixed deposits to secure better interest and ensures savings can be accessed quickly when needed.
• Goal-Based Planning: You opt for a lump-sum payout at maturity (e.g., a major cost) or income (e.g., monthly or quarterly interest), Shriram Finance FD allows this choice.
• Multiple FDs & Easy Management: Investors are able to open more than one FD account at Shriram Finance and manage them as per their financial plan, beneficial to diversify maturity dates or payouts.
• Secure & Reliable: Shriram Finance’s fixed deposits hold a “[ICRA]AA+ (Stable)” rating from ICRA and “IND AA+/Stable” from India Ratings.

How to Apply for Shriram Finance Short Term FD?

Opening a Shriram Finance Short Term Fixed Deposit is easy and well-organised, and can be done online from home or offline by visiting any Shriram Finance branch. Both methods emphasise convenience, safety and involve minimal paperwork for investors overall.

Online Method

You may apply online by completing a few simple steps through the official website or mobile app.

• Account Setup: Register online using an active mobile number to start.
• Deposit Details: Choose deposit amount, tenure, and payout preference.
• Identity Check: Enter PAN, complete digital KYC, submit nominee details.
• Payment Mode: Move funds safely through net banking or the portal.
• Instant Booking: FD booked instantly; download the digital certificate from the portal.
• Final Update: Receive confirmation via email or SMS with details.

Offline Method

Select the in-person method for support with guidance and document preparation:

• Office Visit: Attend the nearest branch during business hours to apply.
• Guided Support: Meet officials for advice and collect application forms.
• Document Filing: Complete the form correctly and attach ID, PAN, plus the required photos.
• Amount Deposit: Provide the investment amount through a cheque or NEFT payment.
• Application Review: Shriram Finance verifies applications and submitted documents thoroughly.
• Hard Copy Issue: Receive a physical FD certificate showing details and maturity.

Who is Eligible for Shriram Finance Short Term FD?

Short term FD from Shriram Finance is designed for a wide range of investors, allowing easy access to both individuals and organisations:

• Indian Residents: Any resident individual in India can start an FD account after fulfilling the bank’s standard KYC.
• Hindu Undivided Families (HUFs): HUFs can invest in Shriram Finance FDs by submitting valid HUF and authorised signatory papers.
• Partnership Firms & Unincorporated Associations: Eligible entities can open FD accounts subject to compliance with documentation and company guidelines.
• Public or Private Companies: Corporates are permitted to invest in Shriram Finance FDs with required regulatory approvals and supporting resolutions.
• Trusts & Foundations: Non-charitable trusts and foundations (not registered under Section 12A) may open FD accounts as per Shriram Finance criteria.
• Minors Through Guardians: Parents or legal guardians can open FDs on behalf of minors until they reach adulthood.

Tax Implications on Shriram Finance Short Term FD

Interest from a Shriram Finance short-term fixed deposit is taxable under the Income Tax Act, 1961, and is shown as Income from Other Sources. For non-cumulative FDs, interest paid monthly, quarterly, half-yearly, or annually is taxable in the financial year in which it is credited. For cumulative FDs, the interest accrued over the entire tenure is taxable in the year of maturity along with the principal amount.

Shriram Finance applies Tax Deducted at Source (TDS) if the total interest earned from all its fixed deposits goes beyond ₹50,000 in a financial year for non-senior citizens and ₹1,00,000 for senior citizens, subject to PAN submission. Investors are required to declare FD interest in their income tax return, even if TDS is not deducted, to ensure tax compliance.

Key Takeaways

Shriram Finance Short Term FD enables investors to deposit up to ₹10 crore in Cumulative and Non-Cumulative plans, giving 7.00% p.a. for regular customers and 7.50% p.a. for senior citizens. With ₹5,000 as the minimum deposit and multiple payout options, it delivers stable, assured returns while remaining completely shielded from market volatility.