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Corporate Fixed Deposits are offered by both financial and non-financial company. In this article, we look at LIC Housing Finance Ltd. which is one of the biggest housing finance company in India. It offers higher interest rates than other bank fixed deposits up to 6.95% for general public and 7.20% for senior citizens. A variety of rating organisations, like as ICRA, CARE, CRISIL and others, frequently grade these term deposits in terms of safety of capital and credibility.

Features of LIC Housing Finance Fixed Deposit:

• Highest Credibility ratings: LIC Housing Finance Ltd. fixed deposits carries FAAA/stable by CRISIL that indicates high degree of safety and has strong chance of timely repayment of interest and Principle amount.
• Minimum deposit amount needed for this Fixed Deposit is Rs. 20000 and thereafter in multiple of Rs.1000. in case of Cumulative deposit scheme.
• In case of Non-Cumulative scheme the minimum amount need for monthly interest payment is Rs.2lakh and multiples of Rs.10000 thereafter. And for annually interest payment option the minimum amount required is 20000 and in multiples of Rs.1000 thereafter.
• Auto-Renewal facility is available.
• Flexibility: Interest is payout on monthly or annually.
• Tenure: 1year to 5 years.
• Loan facility: Depositor can take loan up to 75% of the amount of Fixed Deposit.
• Auto-repayment facility: auto-repayment is also available wherein deposit amount is paid annually to the designated bank account.
• Compounding Power: Interest is compounding annually and paid on maturity along with the principle.
• NRIs can open an account for 3 years.
• Nomination facility available.
• Wide range of fixed deposit schemes available.

Pre-Mature withdrawal of LIC Housing Finance Ltd. fixed deposit:  Interest should not be paid if the deposit is withdrawn before 3 month. If deposit is withdrawn after 3 months and before 6 months, depositor will get 3% interest and if the amount is withdrawn after 6 months or before maturity interest is paid 1% lower than the interest rate applicable to the deposit for which FD remain with the company.

Annual Interest rates of Fixed Deposit:

Interest rates w.e.f. 20 June 2022.

Factors affecting LIC Housing Finance Ltd Fixed Deposit:

There are various factors that affect the fixed deposit interest rates and these factors are Economic conditions, Rise in prices, Recession, and RBI Policies.

Eligibility to open Fixed Deposit account with LIC:

• Individual
• Partnership
• Company
• NRIs
• Joint account Minor with guardian

Any association or Institute

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