LIC Housing Finance Sanchay Fixed Deposit Scheme- A quick review

Updated: Friday, August 23, 2013, 16:33 [IST]

Amid the highly volatile market scenario, LIC Housing Finance launched a safe fixed deposit scheme termed as Sanchay deposit scheme for retail investors, NRIs, HUFs and companies to consider for investment. The scheme rolled out on the company's novel IT platform could prove to be a highly sought after investment option owing to the competitive rate of return being offered when compared to other deposit schemes by banks and other financial institutions. Other factor that could though promote the purchase of Sanchay Fixed deposit scheme is the highest degree of safety of the investment option being backed by age-old Life Insurance Corporation.

Minimum Amount & Rate of Interest offered on different Maturity terms

Investment in the Sanchay fixed deposit scheme can be made for a minimum amount of Rs. 10,000 and for a maximum of five years term. The scheme swanks the highest offered interest rate @ 9.5% on a fixed deposit scheme with five year maturity term and 9.75% for senior citizens.

The table below illustrates the interest rate offered on Sanchay Fixed deposit scheme with different maturity term for general public and senior citizens.

Term	Rate of interest for general public	For Senior citizens with investment amount Rs. 50K	For Senior citizens with investment amount over Rs. 50K
1 year	8.75%	8.85%	9.00%
1.5 yrs.	8.75%	8.85%	9.00%
2 yrs.	9.00%	9.10%	9.25%
3 year	9.25%	9.35%	9.50%
5 year	9.50%	9.60%	9.75%

Comparison of the Rate of return from Sanchay Fixed deposit scheme with returns on bank FDs

Maturity Term	Interest rate offered by PSU banks on FDs	Interest rate offered by private sector banks on FD schemes	Interest rate offered by Sanchay FD scheme
1year or less than 2 years	8.75% - 9.05%	8.00% - 9.25%	8.75%
2 year less than 3 years	8.50% - 9.10%	8.75% - 9.50%	9.00%
3 years less than 5 years	8.50% - 9.00%	8.50% - 9.25%	9.25%
5 years or more	8.00% - 9.25%	8.00%-9.00%	9.50%

The comparison hence suggest that if an investor is going for long term investment of 3 years or more then he can definitely consider investment in Sanchay public deposit scheme for higher rate of return.

Investment Safety

Safety in Sanchay fixed deposit scheme of LICHF is backed by FAAA Stable rating of CRISIL apart from the high credibility of the LIC institution that is backing the investment scheme.

GoodReturns.in