• Overview of LIC Housing Fixed Deposit

    LIC Housing Finance Ltd. Was established in 1989 under the Companies Act, 1956. It was promoted by LIC of India and in five short years went public in 1994. LIC Housing Finance Ltd. has its register and corporate office in Mumbai and is registered under the National Housing Bank while also being listed under the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

    LIC Housing Finance Ltd. offers fixed deposit accounts under the deposit scheme of Sanchay Public Deposit Form since May 2007. LIC Housing Finance offers competitive LIC Housing Finance FD interest rates and a good rate of return on the overall investment, among other benefits.

    Features of the LIC Housing Finance Ltd Sanchay Public Deposit Scheme

    • The minimum amount required to open a fixed deposit with LIC Housing Finance Ltd. under the Sanchay Public Deposit Scheme is Rs.10,000.
    • There on, multiples of Rs.1,000 are accepted as additional deposits.
    • The minimum fixed deposit tenure of LIC Housing Finance Ltd. is 1 year.
    • The maximum fixed deposit tenure of LIC Housing Finance Ltd. for Indian residents is 5 years And for non-resident Indians is 3 years.
    • Interest amounts more than Rs.5,000 in a financial year will be tax deductible as per section 194A of the Income Tax Act, 1961 at the rate applicable.
    • Senior citizens are offered the benefit of enjoying an extra 0.25% over the prevalent rates of interest under the LIC Housing Finance Ltd. fixed deposit scheme.
    • The fixed deposits will be locked in for the first 3 months from the date of receipt as per National Housing Bank guidelines.
    • If you withdraw after 6 months but before the date of maturity, you will be paid 2% less interest than the rate applicable.

    Modes of Making Payment into the Deposit

    • Cheque
    • Demand draft
    • Electronic transfer
    • Brokers/ agents registered with LIC Housing Finance Ltd.
    • Directly by depositor

    Eligibility to Open a Fixed Deposit Account with LIC Housing Finance Ltd.

    • Indian residents
    • Limited companies
    • Private limited companies
    • Non-resident Indians
    • Co-operative societies
    • Association of persons

    Documents Required to Open a Fixed Deposit Account with LIC Housing Finance Ltd.

    • The application form duly filled out
    • Identity proof (PAN card)
    • Address proof
    • KYC documents

    Factors that Affect LIC HFL FD Rates

    • Rise in prices:
      • Among other factors, inflation is also one of the main factors that have an impact on term deposit rates.
      • This determines the interest rates that banks and other financial institutions offer to a large extent.
    • Economic conditions:
      • Certain economic developments play a huge role in determining the interest rates offered by banks and financial institutions in the country.
      • In most growing economies, people usually try to avail credit to meet their financial needs.
      • Also, when there is high demand for credit, banks may offer higher interest rates to invite more depositors.
    • RBI policies:
      • RBI policies and guidelines play a crucial role in determining the interest rates in the economy.
    • Recession:
      • Recession will usually tend to have a negative effect on interest rates in most cases.
      • This is the time when banks and financial institutions will start lowering the rate of interest that is offered on most financial products.

    LIC Housing Fixed Deposit FAQs

    1. Is the interest rate different for corporate deposit schemes and general deposit schemes in LIC HFL?

      No. There is no difference in the interest rates that are offered.

    2. What is Sanchay?

      Sanchay is the name of the public fixed deposit scheme offered by LIC Housing Finance Limited.

    3. What are the interest payout options available?

      For all cumulative term deposits, the interest will be paid and compounded on an annual basis and the customer will be paid at the time of maturity. For all non-cumulative time deposits, interest will be paid annually on March 31st, each year.

    4. What are the different interest payout options available?

      Customers can opt for both cumulative and non-cumulative term deposits.

    5. How is the interest paid to the account holder?

      The interest is directly credited to the bank account of the FD holder through ECS.

    6. Can I open a joint account?

      Yes, the interest payment will only be made in the name of the first deposit holder.

    7. Are all senior citizens eligible for a higher rate of return?

      Yes. Senior citizens will be paid more than regular individuals upon providing the valid age proof documents.

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