Considering investing a lump sum in Shriram Fixed Deposit?

Don't risk your capital for that extra 1-2% , NBFC are never that safe and there is no DGIC insurance alike banks which have upto 5 Lakhs of insurance if there's a default by bank. For an emergency fund, depositing with a bank is better.

Open a Kotak 811 Account. They have autosweep fd called Activmoney. Anything above 25k is put into an FD with 7% interest and no locking or penalties. When your bank balance goes below 10k it is automatically withdrawn.

Shriram finance? “The group had its beginning in chit funds business and later on entered the lending and insurance businesses.” 😅 short term ok but not for long term

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Emergency fund needs to be super liquid. Corporate FD (like Shriram) is not liquid at all, sometimes they have lock-in as well. Rather keep in FD with private sector bank where you can premature withdraw immediately into your bank account within a few minutes on mobile app. If you generally asking for investment advise to park your excess funds, then these corporate bonds are good enough. Haven’t heard of a default in the retail market in recent years - authorities won’t allow retail investors money to be hurt in any way.

I'd say the best in this case is Paytm payments bank. They are just an intermediary. IndusInd bank is the one with whom your FD is created. It's safe and you can withdraw it without any hassle. I've parked my emergency fund there. You get 7.5% as interest rate as well. So ticks almost all the boxes.

Its equivalent to lending it to a friend

Check the exit load as well. I have invested in it and regretting now. I invested there to park my money so that i could invest in equity whenever opportunities comes. But if you exit before the maturity, the returns are pathetic. It’s not worth it to have added risk plus high exit load for that additional 1-2%.

You can deposit in a small finance bank. Unlike Shriram Finance, SFB deposits upto 5L are insured. And they offer higher interest rate vs traditional banks

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