Sundaram Finance, a non banking finance company (NBFC) has declared an increase in its deposit rates with effect from January 6, 2011.

As per the revised rates, deposits of 1 year maturity will offer interest of 8.75% as compared to 8% earlier while two and three year deposits will now earn the depositor 9% and 9.25% as compared to 8.25% and 8.50% respectively.

Senior citizens will be offered 9%, 9.25% and 9.50% interest as compared to 8.25%, 8.50% and 9% earlier for 1, 2 and 3 year deposits respectively.

The deposit base of the company amounts to more than Rs 11 billion.