Unlocking Wealth Growth with LIC Housing Finance Fixed Deposits: Interest Rates and Beyond

Introduction:

LIC Housing Finance Limited (LIC HFL) is a leading financial institution offering a wide variety of Fixed Deposit (FD) plans to meet diverse investor needs. This article examines LIC FD interest rates and highlights features that make it an appealing investment option.

LIC FD Duration and Interest Rates:

LIC HFL’s FDs range from 36 to 60 months with attractive interest rates between 7.25% and 7.75%, allowing investors to match their investment horizon with financial goals.

Minimum and Maximum Deposits:

The minimum deposit for the monthly option is Rs. 2 lakh, whereas the yearly option requires at least Rs. 10,000. Additional deposits may be made in multiples of Rs. 10,000 for monthly and Rs. 1,000 for yearly, offering greater flexibility.

LIC FD Sanchay:

LIC Housing Finance’s Sanchay plan offers a minimum deposit term of three months with senior interest rates up to 6.00%, making it an enticing choice for careful investors.

Term-wise LIC FD Rates:

Short-Term Deposits:

Spanning 1 day to 1 year, short-term FDs provide rates from 5.25% to 5.5% for general customers and 5.5% to 5.7% for senior citizens.

Medium-Term Deposits:

Covering 1 year 5 months to 4 years 11 months, medium-term FDs offer rates from 5.65% to 5.75% for general customers and 5.9% to 6% for senior citizens.

Loan Against LIC FD:

Investors can take a loan up to 75% of their LIC FDs with an interest rate 2% p.a. above the FD rate.

Premature Closure and Interest Payment Options:

LIC allows premature FD withdrawals with a 2% interest rate penalty. Interest on cumulative deposits is paid annually, while non-cumulative deposits receive interest on March 31st each year.

Tax Implications:

LIC Tax Saving FD offers tax benefits up to Rs. 1,50,000 p.a. However, interest income is taxable per income tax slab rates. TDS of 10% applies if the income surpasses Rs. 40,000 p.a., with a limit of Rs. 50,000 p.a. for senior citizens.

FAQs:

Interest Payment Options:

Interest on cumulative deposits compounds annually and is paid at maturity, while non-cumulative deposits see interest paid on March 31st annually.

Penalties for Missing PAN Information:

Not providing PAN card details leads to a 20% TDS rate, no TDS certificate issuance, and possible TDS credit denial.

Various Interest Payment Options:

Customers can choose between cumulative and non-cumulative term deposits.

Joint Account Creation:

Joint accounts are possible, yet interest payments are done only in the primary depositor’s name.

Interest Payment Process:

Interest is credited directly to the FD holder's bank account via ECS.

Premature Withdrawal Procedure:

Withdrawals are allowed three months into the FD term.

Conclusion:

LIC Housing Finance Fixed Deposits offer competitive interest rates and promise high investment returns, making them a reliable choice for investors pursuing wealth growth and financial security. Consider the benefits of LIC FDs for a secure financial future.