LIC Housing Finance Ltd is one of the largest housing finances in the country today; it was incorporated under the Companies Act (1956) on 19 June 1989.
The fixed deposit schemes are for the ones who wish to avail a safe and stable investment opportunity that will give them guaranteed returns at a higher interest rate than a normal savings bank account would. The fixed deposits offered are under the name – Sanchay. It is a public deposit scheme that may be availed by a large number of people, including resident Indians, Non Resident Indians, Co-operatives, Trusts, private companies, etc.
LIC HFL has very large and extensive marketing network. It has seven regional offices, sixteen back offices, 209 marketing units and more than 10478 intermediaries around India. The representative offices outside of the country are in Kuwait and Dubai that provides services to Non Resident Indians in Bahrain, Kuwait, Qatar, Dubai and Saudi Arabia.
LIC Fixed Deposit Rates 2019
|FD Tenure||Regular Citizens
(below Rs. 20 crores)
(below Rs. 20 crores)
|1 year||8.15% p.a.||8.40% p.a.|
|18 months||8.15% p.a.||8.40% p.a.|
|2 years||8.20% p.a.||8.45% p.a.|
|3 years||8.25% p.a.||8.50% p.a.|
|5 years||8.30% p.a.||8.55% p.a.|
Note: Interest rates w.e.f. Nov. 5, 2018. Figures mentioned in the above table are subject to change without prior information.
What are the Advantages or Benefits of LIC Fixed Deposit Accounts?
Fixed deposits are investment and savings account where individuals can deposit money for a stipulated period of time. The deposit amount earns a fixed rate of interest that is paid out at the end of the term.
There are several advantages of availing fixed deposits; we will go through them below:
- Fixed deposits are safe investment options whose interest rates do not fluctuate. The depositor is assured of receiving guaranteed returns at the end of the deposit period.
- The deposit amount can be easily withdrawn at any time with minimal penalty.
- Fixed deposits earn a higher rate of interest than normal savings bank accounts.
- Fixed deposits are flexible and can be taken for a term of one month, or one year or even until ten years.
- The depositor may invest in different fixed deposits for different lengths of time in order to meet different financial aims.
- Depositors can choose at which term he or she would receive the interest earned on their deposits. That could be monthly, yearly or on maturity of the deposit.
LIC Fixed Deposit Scheme
LIC Housing Finance Ltd offers a public fixed deposit under the name of ‘Sanchay’. This scheme was begun in the year 2007, in the month of May. Both cumulative and non-cumulative options are available under the scheme. The Sanchay Fixed Deposit scheme accepts deposits for individuals, Hindu Undivided Families, private limited companies, NRIs, Trusts etc.
Deposits can be made jointly, meaning two to three people can make a single deposit account under Sanchay. The number of joint holder on the deposit account cannot exceed three in number. The depositor has to provide certain proofs of identity and address, such as his or her Passport, Aadhar Card, Senior Citizen Card, Employee Card, Photo Ration Card, PAN Card, Voters’ ID card, driving license, etc.
LIC Fixed Deposit Scheme – Sanchay
- This is rated as a stable investment scheme by CRISIL
- It is rated FAAA/stable; FAAA is the rating that indicates the highest degree of safety with regards to the timely payment of interest and that the principal is also very strong.
We will take a closer look at some of the features of the LIC Housing Finance Ltd Fixed Deposit Scheme – Sanchay:
- Minimum period or term for the deposit scheme 1 year.
- This fixed deposit scheme can be availed by– Sanchay to Indian residents, private limited companies, Hindu Undivided Families, Non Resident Indians, Association of persons, Trusts and Co-operative Societies.
- Non Resident Indians may also open this deposit account for a maximum of three years
- Depositors have the option of choosing cumulative or non-cumulative deposit scheme.
- Minimum amount that may be deposited is Rs. 10,000. Any additional deposit amount that is accepted has to be in multiples of Rs. 1000.
- Depositors may jointly hold this single deposit account under the Sanchay scheme.
- The interest under the LIC Housing Finance Ltd is compounded or paid on a yearly basis.
- Senior citizens receive an additional interest of 0.10% per annum on deposit amounts up to Rs. 50,000. On deposit amounts of Rs. 51,000 and more, senior citizens receive an additional interest of 0.25%.
Documents Required to Open the LIC Fixed Deposit Account – Sanchay
The documents mentioned below have to be furnished in self-attested copies and in original:
- A proof of residence that may be provided by the depositor could be in the form of a copy of the Ration Card, Telephone Bill, Voters ID Card Passport or Electricity Bill
- A proof of identity that may be provided by the depositor could be in the form of a copy of a Passport, Photo Ration Card, Aadhar Card, PAN Card, Voter’s ID Card, Driver’s License
- A proof of income that may be provided by the depositor could be in the form of the depositor’s previous two or three years Income Tax Returns or his or her Form 16 for the previous two or three years
- Passport sizes photographs of the depositor/s
- The depositor should provide his or her PAN Card, in case of failure to provide this identifying document, the depositor may provide a declaration of Form 60 or Form 61
- A cheque with the deposit amount