Sundaram Finance provides customers with various financial solutions. Option to invest in fixed deposits provided by the company is one such solution to maximize savings at decent Sundaram Finance FD rates without having to dive in market-related risks. Let’s discuss the types of Sundaram Finance fixed deposits in detail.
Table of Contents
To check the FD rating of Sundaram Finance fixed deposits by CRISIL and ICRA, check the table below.
| FD Rating of Sundaram Finance Ltd. Fixed Deposits | ||
| Credit Rating Agency | Rating | Outlook* |
| CRISIL | FAAA | Stable |
| ICRA | – | – |
Sundaram Finance has a long term ICRA rating of AAA with Stable Outlook. It indicates the highest degree of safety regarding timely servicing of financial obligations. This rating includes all bonds, debentures and other debt instruments. However, please note that public deposits are not rated here.
What is Outlook in credit rating?
The literal meaning of outlook is prospective or the likelihood of something happening in future. For credit rating, outlook indicates if the current rating will improve, go down or remain stable in the near to medium term (generally from 6 months to 2 years). Both, ICRA and CRISIL, provide three types of outlook, viz. Positive, Negative and Stable.
Sundaram Finance FD Rates 2020
Non-Cumulative FD Interest Rates
| Tenure | Sundaram Finance Deposit Rates (p.a.) | |||
| Regular Citizens | Senior Citizens | |||
| Quarterly | Monthly | Quarterly | Monthly | |
| 12 months | 5.75% | 5.72% | 6.25% | 5.72% |
| 18 months | Withdrawn | |||
| 24 months | 6.00% | 5.97% | 6.50% | 5.97% |
| 36 months | 6.25% | 6.22% | 6.75% | 6.22% |
Interest rates effective from 1st September 2020
Cumulative Deposit Interest Rates
| Tenure | Sundaram Finance Deposit Rates (p.a.) | |
| Regular Citizens | Senior Citizens | |
| Quarterly | Quarterly | |
| 12 months | 5.75% | 6.25% |
| 18 months | Withdrawn | |
| 24 months | 6.00% | 6.50% |
| 36 months | 6.25% | 6.75% |
Interest rates effective from 1st September 2020
Types of Sundaram Finance FD Schemes
There are two types of schemes provided by the company, viz.:
1. Sundaram Finance Fixed Deposit (Non-Cumulative) Scheme
This is the regular FD scheme which can be identified as the non-cumulative type providing regular income to the investor. Here, the interest earned is either paid to the investor per month or every quarter, thus making it a Regular Income Scheme.
| Particulars | Details |
| Tenure | 12 – 36 months |
| Min. Deposit Amount | Rs. 10,000 |
| Interest Treatment | Paid on a monthly/quarterly basis |
| Rates for Senior Citizens | Preferential FD rates for senior citizens |
| Premature Withdrawal | Available; after 3 months |
| Loan against FD | Available; up to 75% of the balance in FD |
| Features |
|
2. Sundaram Finance Cumulative Deposit Scheme
This is a type of deposit scheme where interest earns interest, i.e. interest earned per quarter is added to the principal amount which further earns interest likewise till maturity. At maturity, the principal amount is paid back to the investor along with accrued interest.
| Particulars | Details |
| Tenure | 12 – 36 months |
| Min. Deposit Amount | Rs. 10,000 |
| Interest Treatment | Compounded quarterly; paid on maturity |
| Rates for Senior Citizens | Preferential FD rates for senior citizens @ 0.50% |
| Premature Withdrawal | Available; after 3 months |
| Loan against FD | Available; up to 75% of the balance in FD |
| Features |
|
Premature Withdrawal Facility
In both the schemes, cumulative and non-cumulative (fixed deposit) schemes, customers can opt to withdraw money from their FD account. To avail of this facility, it is mandatory that the account was active for a minimum period of 3 months.
Useful Article: All you need to know Premature withdrawal of fixed deposit
Sundaram Finance Loan against FD
To recuperate from a financial urgency, customers can take a loan from Sundaram Finance against their fixed deposit account. Loan of up to 75% of the balance in the fixed deposit account is permitted to be taken as loan. Please note that this facility is only for domestic residents of the country and cannot be taken against NRI Deposits.
Sundaram Finance FD Calculator
An FD calculator might prove quite helpful when deciding which Sundaram Finance FD to invest in by providing customers with the closest maturity amount. Paisabazaar provides this tool for free and it can be used for multiple times to check and compare various FDs. Inputs like deposit amount, tenure and prevailing Sundaram Finance FD rates are required to use this tool post which a maturity amount shall be displayed on the screen.
Documents Required to Apply for Sundaram Finance Fixed Deposits
To apply for fixed deposit schemes by Sundaram Finance, the following list of documents must be kept in check:
- Application form
- Proof of date of birth (Aadhaar card, passport, Higher Secondary Certificate, driving license, etc.)
- Photo ID proof (voter’s ID card, passport, bank passbook with photo, Aadhaar card, etc.)
- Proof of residence (Bank A/c statement, passport, Aadhaar card, utility bill, etc.)
- Cheque or DD in favour of Sundaram Finance Limited
KYC documents for Companies
- Certificate of incorporation and Memorandum & Articles of Association
- Resolution of the Board of Directors to open an account and identification of those who have authority to operate the account
- Power of Attorney granted to its managers, officers or employees to transact business on its behalf
- Copy of PAN allotment letter
- Copy of the telephone bill
KYC documents for Partnership Firms
- Partnership deed
- Power of Attorney granted to a partner or an employee of the firm to transact business on its behalf
- Any officially valid document identifying the partners and the person holding the Power of Attorney and their addresses
- Telephone bill in the name of firm/partners
KYC documents for Trusts & Foundations
- Certificate of registration, if registered
- Power of Attorney granted to transact business on its behalf
- Any officially valid document to identify the trustees, settlors, beneficiaries and those holding Power of Attorney, founders/managers/ directors and their addresses
- Resolution of the managing body of the foundation/association
- Telephone bill
How to Apply for Sundaram Finance FD Schemes
Deposit the aforementioned documents along with the duly filled and signed application form at the nearby branch of Sundaram Finance. The company also provides the ‘Call-Back’ facility. On the website of Sundaram Finance under the Fixed Deposit section, customers can look for the link saying ‘Request a Call Back’ and fill the form that shall appear to submit details. A representative from the company shall contact to help the customer through the application process.
Frequently Asked Questions
Q. What is the age to apply for Sundaram Finance fixed deposits as senior citizens?
A. To avail preferential Sundaram Finance FD rates for senior citizens, one must have completed 60 years of age at the time of application or renewal.
Q. What is the mode of interest payment opted by Sundaram Finance?
A. Interest can be credited to the investor’s account via NEFT, RBI Electronic Clearing Service or cheque.
Q. What is the difference between Form 15G and 15H?
A. Both these forms are self-declarations that investors can submit if their total income is not taxable (i.e. falls within Rs. 2.5 lakh). Form 15G or 15H shall help in avoidance of TDS so that one does not have to file ITR for their non-taxable income. While Form 15H is for senior citizens (above 60 years of age), 15G is to be filled by eligible non-senior citizens.
Q. What is the highest fixed deposit rate provided by Sundaram Finance?
A. Highest Sundaram Finance FD rate for domestic deposits is 6.25% for 36 months, at quarterly rests. This is for the cumulative option. 0.50% extra for senior citizens.