Introduction
When it comes to fixed-income investments, LIC Housing Finance Limited’s Fixed Deposit scheme has become a reliable term deposit instrument that has caught the attention of many investors. The LIC HFL Sanchay Fixed Deposit Scheme, introduced in 2007, is known for offering flexible tenure options along with attractive interest rates. Additionally, its credibility is further enhanced by the stable rating given by CRISIL, which is among the highest ratings for any deposit-taking organization.
In this article, we will explore the features, benefits, and eligibility criteria of this fixed deposit scheme in detail.
Understanding Fixed Deposits
A fixed deposit (FD) is a financial product offered by banks, NBFCs, and post offices that allows individuals to invest their money for a fixed tenure at a predetermined interest rate. FDs are considered a safe and effective way to accumulate wealth over time due to their assured returns and stability.
Features of LIC HFL Sanchay Fixed Deposit Scheme
1. Type of Deposit
- The name of this fixed deposit scheme is Sanchay.
- It falls under the category of Public Deposits.
- It offers both cumulative and non-cumulative options.
2. Investment Amount and Tenure
- The minimum deposit amount for the annual option is ₹20,000.
- For the monthly option, the minimum deposit starts at ₹10,000 and follows multiples of ₹10,000.
- The scheme offers various tenure options, including 1, 1.5, 2, 3, and 5 years.
3. Eligibility Criteria
- Both Resident Indians and NRIs can invest in this scheme.
- Eligible entities include:
- Hindu Undivided Families (HUFs)
- Partnership firms
- Associations of persons
- Cooperative societies
- Property concerns
- Trusts
4. Interest Payment Options
- Cumulative Option: Interest is compounded annually and paid on maturity.
- Non-Cumulative Option:
- Interest can be paid monthly or yearly as per the depositor’s choice.
- The monthly option is available only through electronic transfer.
- Annual interest payments can be received via electronic transfer or interest warrant, after TDS adjustment, on 31st March every year.
5. Premature Withdrawal
- The scheme allows premature withdrawal, subject to applicable terms and conditions.
6. Loan Facility
- Investors can avail a loan of up to 75% of the deposit amount.
7. Interest Rate Options
- There are two interest rate structures:
- Annual Option: Interest is paid after TDS adjustment.
- Monthly Option: Interest is paid on the first day of every month and again on 31st March after TDS adjustment.
8. Special Benefits for Senior Citizens
- Senior citizens receive an additional 0.25% interest rate over the card rate.
9. Deposit Limits
- Deposits of up to ₹20 crore can be made at the card rate from the 1st to the 15th of the month or from the 16th to the end of the month.
- If the deposit exceeds ₹20 crore, the applicable interest rate is adjusted accordingly.
Documentation Required
If you are investing in this scheme for the first time, you will need to submit the following documents:
- Completely filled and signed FD application form
- Passport-sized color photograph
- PAN Card copy
- ID Proof (Any one of the following):
- Aadhar Card
- Passport
- Driving License
- Address Proof (Any valid document showing the current address, such as utility bills)
- Age Proof (For senior citizens availing the additional interest rate):
- Birth certificate
- School leaving certificate
Why Choose LIC HFL Sanchay Fixed Deposit Scheme?
- Trusted Brand: LIC Housing Finance Limited is a well-established and reputable financial institution.
- High CRISIL Rating: Ensures the safety of your investment.
- Attractive Interest Rates: Offers competitive returns.
- Flexible Tenure Options: Allows investors to choose from various deposit periods.
- Loan Facility: Provides liquidity in times of need.
- Additional Benefits for Senior Citizens: Ensures better returns for elderly investors.
- Convenient Interest Payment Modes: Options to choose between cumulative and non-cumulative interest payouts.
Conclusion
The LIC HFL Sanchay Fixed Deposit Scheme is an excellent investment option for individuals looking for a safe and reliable fixed-income product. With attractive interest rates, flexible tenure options, and additional benefits for senior citizens, this scheme is ideal for conservative investors seeking wealth accumulation and financial stability.
If you are considering investing in this scheme, make sure to assess your financial goals and risk appetite before proceeding. This information is intended for educational purposes only.