This AAA (Stable) Rated Government HFC Is Offering Up To 6.25% Interest On FDs

Fixed Deposits are a fixed income product that assures steady returns to the investors. From a return standpoint, fixed deposits are slow and steady.FDs appear to have slipped into darkness in a growth-driven environment, with the attention firmly on soaring stock prices. However, the cycle appears to be changing as valuations become stretched and global funding costs rise. The equity market s facing tough times due to various global issues such as the Russia-Ukraine Conflict.

In recent times, after RBI hiked the repo rate, the banks, as well as various NDFCs, revised their interest rates on various products. Despite the hikes by Banks, the NBFCs are offering better interest rates when compared to the Banks.

As a result, risk-averse depositors are flocking to corporate FDs, and rate hikes by various corporate FDs have further contributed to the appeal. One of the simple reasons behind investors getting attracted to these corporate FDs is they want safe, predictable returns with no risk.

LIC Housing Finance Ltd.

LIC Housing Finance Ltd. is one of the biggest housing finance corporations in India with a pan India presence. The company offers FDs under the Sanchay Deposit Scheme. The scheme was launched by the company in May 2007. The scheme is safe it is rated by the CRISIL. CRISIL has rated LIC Housing Finance Ltd's SANCHAY deposit scheme FAAA/Stable since its commencement. This is the highest rating given to any deposit-taking entity's deposit instrument.

 

Fixed Deposits (w.e.f 05 January 2022)

The company offers interest rates up to 6.25% on public deposits up to Rs 20 Crore, and Up to 5.25% above 20 Crore under the cumulative deposits and non-cumulative deposit options. Under both the options, tenure options include 1 year, 18 months, 2 years, 2 years, and 5 years. Interest is compounded annually and paid concurrently with the principal amount at maturity, after deducting any applicable taxes. Monthly and annual interest payment options are available under the non-cumulative FD option. The company offers an additional benefit of 0.25% p.a. in interest rate to senior citizens for deposits upto Rs. 20 Crore on all tenures.

Cumulative Deposits up to Rs 20 Crore

Tenure	Normal Citizen FD Rate	Senior Citizen FD Rate
1 year	5.15%	5.40%
18 Months	5.50%	5.75%
2 Years	5.65%	5.90%
3 Years	5.90%	6.15%
5 Years	6.00%	6.25%

Cumulative Option On Deposit above Rs 20 Crore

Tenure	Normal Citizen FD Rate
1 year	4.50%
18 Months	4.85%
2 Years	5.00%
3 Years	5.25%
5 Years	5.35%

Source- LIChousing.com