Latest Sundaram Finance FD Interest Rate 2023
Sundaram Finance FD rates vary from 7.45% to 7.75% for the general public. Senior citizens are eligible for 0.5% higher interest rate than the normal rate with rates varying from 7.95% to 8.25%. The fixed deposit tenure ranges from 12 months to 36 months. The minimum deposit amount is Rs.10,000 and the interest is credited through RBI ECS or NEFT on a monthly or quarterly basis.
Other than normal FD schemes, Sundaram Finance also offers a variety of NRI deposit schemes.
Sundaram Finance FD Interest Rate 2023 Highlights
| Interest rate | 7.45% – 8.25% |
| Tenure | 12 months – 36 months |
| Minimum deposit | Rs.10,000 |
| Maximum deposit | No maximum limit |
| Lock-in period | 1 year (36 months for relevant deposit) |
How to Calculate Sundaram Finance FD Interest Rate
There are two ways to calculate the interest earned on fixed deposits: simple interest method and compound interest method. Simple interest is based on the predetermined interest rate and applies to the principal amount invested during the investment period. Compound interest is calculated based on the interest earned on the original amount plus any previous interest..
Calculate Sundaram Finance FD Interest Rate – Simple Interest
To calculate the interest and maturity value using the simple interest method, use the given formula:
Simple Interest = (P * R * T)/100
Where,
- P = Principal amount invested
- R = Rate of Interest (%)
- T = Tenure in years
Let’s assume that an individual has invested Rs.1 lakh for a tenure of 3 years at a 7% p.a. interest rate. Therefore, we can calculate the interest and maturity value as follows:
Simple Interest = (1,00,000 * 7 * 3) / 100 = Rs.21,000
Maturity Value = Principal Amount + Simple Interest = Rs.1,00,000 + Rs.21,000 = Rs.1,21,000
Calculate Sundaram Finance FD Interest Rate – Compound Interest
Alternatively, you can use the compound interest method to calculate the interest and maturity value.
Let’s say you have invested Rs.1,00,000 for 3 years at an interest rate of 7% pa.
For compound interest calculation, the formula applicable is given below:
A = P (1+r/n)^(n*t)
Where, A = Maturity Amount, P = Principal amount invested, r = Rate of Interest (in decimals), n = the number of times interest is compounded in a year and t = the number of years
Here, the interest rate is given as 7% per annum, so we need to convert it to a decimal and find the number of times interest is compounded in a year. Let’s assume the interest is compounded quarterly, so n = 4.
Substitute the given values into the formula and calculate the maturity amount as follows:
A = 1,00,000 (1+0.07/4)^(4*3)
Maturity Amount = Rs. 1,23,411.26 (approx)
Interest earned = Maturity amount – Principal amount
= Rs. 1,23,411.26 – Rs.1,00,000
= Rs. 23,411.26
Factors that Can Affect Sundaram Finance Fixed Deposit Rates
Here are some key factors that affect the Sundaram Home Finance FD rates:
1. Tenure
The interest rate on fixed deposits varies based on the investment tenure. Sundaram Finance offers 3 different tenures for regular customers and senior citizens with relevant interest rates.
2. Deposit Amount
The interest rate would vary depending on whether you’re depositing belowRs.2 crore or above Rs.2 crore. Deposits above Rs.2 crore are called bulk deposits and carry a different interest rate.
3. Age
Sundaram Finance offers senior citizens 0.5% higher interest rates on FDs than regular customers.
4. Credit Rating
Sundaram Finance has been accredited with a credit rating of AAA/Stable by CRISIL and AAA/Stable by ICRA. A higher credit rating reflects the company’s financial stability and creditworthiness, which may impact the interest rates offered on its FDs.
5. Market Conditions
FD interest rates are also affected by market conditions such as inflation, economic growth, and change in RBI’s monetary policy.
Sundaram Finance FD Interest Rate for General Public
Sundaram Finance offers fixed deposits with 3 different tenures. The general public can earn up to 7.75% from investing in the FD. All interest earned is liable for taxation as per the income slab of the depositor. The table below shows Sundaram Finance FD interest rates for regular and cumulative fixed deposits.
| Regular Fixed Deposit | |||
| Terms in months | Rate (% at Annual Rests) | Monthly Interest Rate % pa | Quarterly Interest Rate % pa |
| 12 | 7.45 | 7.21 | 7.25 |
| 24 | 7.75 | 7.49 | 7.53 |
| 36 | 7.75 | 7.49 | 7.53 |
| Cumulative Fixed Deposit | |||
| Terms in months | Annual rates | Maturity value of Rs. 1,000 | Effective yield % pa |
| 12 | 7.45 | 1,075 | 7.45 |
| 24 | 7.75 | 1,161 | 8.05 |
| 36 | 7.75 | 1,251 | 8.37 |
Sundaram Finance FD Interest Rate for Senior Citizens
Sundaram Finance deposit rates for senior citizens come with additional 0.50% over the rates for regular public. A person aged 60 or above on the date of opening the account or when renewing the account may earn up to 8.25% on the FD depending on the tenure chosen. The table below shows Sundaram Finance FD rates for senior citizens on regular and cumulative fixed deposits.
1. Regular Fixed Deposit
| Regular Fixed Deposit | |||
| Term (Months) | Rate (% at Annual Rests) | Monthly Interest Rate % pa | Quarterly Interest Rate % pa |
| 12 | 7.95 | 7.67 | 7.72 |
| 24 | 8.25 | 7.95 | 8.01 |
| 36 | 8.25 | 7.95 | 8.01 |
2. Cumulative Fixed Deposit
| Cumulative Fixed Deposit | |||
| Terms in months | Annual rates | Maturity value of Rs. 1,000 | Effective yield % pa |
| 12 | 7.45 | 1075 | 7.45 |
| 24 | 7.75 | 1161 | 8.05 |
| 36 | 7.75 | 1251 | 8.37 |
Sundaram Finance FD Interest Rate for NRI
While Sundaram Finance does offer fixed deposits to Non-Resident Indians, the deposits are accepted only if they originate from the depositor’s NRO account in India. NRE or FCNR transfer-ins are not eligible. Note that these deposits are non-repatriable. Moreover, these deposits are not qualified for loan against fixed deposits.
Sundaram Finance VS Other Banks’ FD Interest Rate
The table below shows Sundaram Finance fixed deposit rates compared with interest rates given out by other banks on their fixed deposits. The rates are inclusive of the preferential rates extended to senior citizens, and are benchmarked for deposits below Rs 2 crore.
| Bank Name | Tenure | Interest Rate |
| Sundaram Finance Fixed Deposit | 12 months to 36 months | 7.45%-8.25% |
| Shriram Finance Fixed Deposit | 12 months to 60 months | 7.34%-9.10% |
| SBI Fixed Deposit | 7 days to 10 years | 3% to 7.50% |
| HDFC Fixed Deposit | 7 days to 10 years | 3% to 7.75% |
| ICICI Fixed Deposit | 7 days to 10 years | 3% to 7.60% |
| Indian Overseas Bank Fixed Deposit | 7 days to 10 years | 4.30% to 7.75% |
| Axis Bank Fixed Deposit | 7 days to 10 years | 3% to 7.26% |
| IndusInd Fixed Deposit | 7 days to 5 years and above | 3.50% to 8.25% |
| Punjab and Sind Bank Fixed Deposit | 7 days to 10 years | 2.80% – 7.60% |
| Bank of Baroda Fixed Deposit | 7 days to 10 years | 3% to 7.55% |
| Bank of India Fixed Deposit | 7 days to 10 years | 3% to 7.80% |
| Canara Bank fixed Deposit | 7 days to 10 years | 4% – 7.75% |
| DBS Bank Fixed Deposit | 7 days to 5 years and above | 2.5% to 8% |
| Union Bank Fixed Deposit | 7 days to 10 years | 3% to 8.05% |
| Central Bank of India Fixed Deposit | 7 days to 10 years | 4% – 6.75% |
| Paytm Payments Bank Fixed Deposit | 7 days – 1-year | 2.75% – 5.5% |
| Kotak Bank Fixed Deposit | 7 days to 10 years | 2.75% to 7.70% |
| IDFC Bank Fixed Deposit | 7 days to 10 years | 3.50% to 8.25% |
| Yes Bank Fixed Deposit | 7 days to 10 years | 3.25% to 8.25% |
| Post office Fixed Deposit/Time Deposit | 1 year to 5 years | 6.6% to 7% |
| Bandhan Bank Fixed Deposit | 7 days to 10 years | 3.75% to 8.50% |
Also Read
Features and Benefits of Sundaram Finance FD
Listed below are the primary features of opening a fixed deposit with Sundaram Finance:
- Minimum period of deposit is 12 months
- Maximum tenure is 36 months
- Minimum deposit required is Rs.10,000
- There’s no upper limit for maximum deposit
- Sundaram Finance fixed deposits have been rated AAA for 30 years
- Sundaram Finance offers joint fixed deposit accounts. A maximum of three individuals can open a joint fixed deposit account to invest together.
- Interest earned on the fixed deposit is payable to the depositor monthly or quarterly from the date of issue through ECS or NEFT to linked bank account
- Cumulative Deposits, however, transfer interest payable at the time of maturity
- Loan against FD available
- Premature withdrawals are possible only after 3 months
What are the Different Types of FD schemes Offered by the Bank
- Regular Fixed Deposit
- Cumulative Fixed Deposit
- NRI Fixed Deposit
1. Regular Fixed Deposit
- Minimum Deposit: Rs.10,000
- Maximum Deposit: No Upper Limit
- Interest Rate: 7.45% – 8.25%
- Tenure: 12 months to 36 months
2. Cumulative Fixed Deposit
- Minimum Deposit: Rs.10,000
- Maximum Deposit: No Upper Limit
- Interest Rate: 7.45% – 8.25%
- Tenure: 12 months to 36 months
3. NRI Fixed Deposit
Sundaram Finance accepts deposits from NRIs on a non-repatriable basis. Contact the bank to get more details regarding the terms and conditions.
How to Invest in Sundaram Finance FD
You can apply for a fixed deposit with Sundaram Finance via the online and offline method.
- Step 1: Download the fresh ‘Deposit Application Form’ from the website
- Step 2: Duly fill out the application form
- Step 3: Complete the KYC
- Step 4: Attach the required documents
- Step 5: Submit the application form
You can submit the application form for the fixed deposit by visiting the bank along with a cheque or cash.
Documents Required to Open Sundaram Finance FD
You will need the following documents to apply for a fixed deposit with Sundaram Finance:
1. For Resident Individuals
- FATCA form
- Bank passbook with photo
- Passport size photo
- KYC Documents (ID & Address Proof)
- PAN Card (Mandatory)
- Aadhaar Card
- Passport
- Voter ID Card
- Driving Licence
2. For Companies
- Copy of PAN allotment letter
- Copy of the telephone bill
- Certificate of incorporation and Memorandum & Articles of Association
- Power of Attorney granted to its managers, officers or employees to transact business on its behalf
- Resolution of the Board of Directors to open an account
- Identity proof of individuals who have the authority to operate the account
3. For Partnership Firms
- Partnership deed
- Registration certificate, if registered
- Power of Attorney granted to a partner or an employee of the firm to conduct business on its behalf
- Identity and address proof of the partners who have the Power of Attorney
- Copy of telephone bills in the name of the firm or partners.
4. For Trusts and Foundations
- Trust Deed
- PAN Card
- Certificate of Registration
- List of authorised signatories
- A Resolution that authorises the placement of deposit
Eligibility to Open Sundaram Finance FD
You can open a fixed deposit account if you are one of the following:
- Indian resident
- Individuals
- Companies
- Partnership firms
- Trusts and foundations
Taxation on Sundaram Finance FD Deposit Scheme
- The interest earned on FDs is considered as “income from other sources” and is subject to taxation as per the individual’s income tax slab
- Banks are required to deduct TDS every year on the interest earned on FDs if the interest amount exceeds Rs.40,000 per financial year (Rs.50,000 for senior citizens)
- If an individual withdraws their FD before the maturity date, the interest earned on such premature withdrawal is also subject to taxation as per their income tax slab
- Form 15G/15H can be submitted by the depositor to claim tax exemption I-T Act Rules
Loan Against Sundaram Finance FD Deposit Scheme
You can get up to 75% of the fixed deposit amount as a loan. The NBFC charges 2% interest on loans against FD. Below are the highlights:
- Get up to 75% of the value of your fixed deposit
- The term deposit receipt (TDR) will go under lien and be retained by the NBFC for the duration of the loan.
- An interest rate of 2% per annum is charged above the contracted rate displayed in the term deposit receipt.
- Loans against fixed deposits are not offered against NRI deposits.
Final Word
Sundaram Finance FD rates vary based on the tenure and scheme. Senior citizens are eligible for a 0.50% higher interest rate compared to the normal rate. In case you want to invest, use an FD returns calculator to plan your investments in a better way.
Investing in FDs gives you assured returns albeit at a lower interest rate. But to beat the rising inflation, you need to find an alternate avenue. Consider investing in Navi Mutual Fund schemes maybe? We have schemes for every investor. Wary of the market? You can mitigate the market chaos by investing with just Rs.10!
FAQs
The Sundaram Finance FD interest rates are subject to change based on market conditions and the company’s policies. Currently, the interest rates range from 7.45% to 7.75% for regular customers and 7.95% to 8.25% for senior citizens.
The minimum deposit amount required to open an FD account with Sundaram Finance is Rs.10,000 for regular and cumulative fixed deposits.
Yes. You can withdraw your deposits after 3 months from the date of deposit or renewal. However, premature withdrawals are subject to charges and reductions in interest rates.
Yes. Sundaram Finance enables you to open a joint FD account with a maximum of three people.
Yes. You can take a loan of 75% of the deposit at a 2% higher than the contracted interest rate. However, you can only take a loan against the fixed deposit if it runs for three months. No loan facility is available against NRI deposits.
Form 15G and Form 15H (for Senior Citizens) are self- declarations given by those Depositors who are not assessed to Income Tax.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
