PremiumNBFC, LIC Housing Finance has raised its public deposit interest rates by 10-65 basis points with effect from December 26th. The public deposits are to the tune of ₹20 crore and above. Depositors can earn as high as 7.50% on their investments. The tenures for public deposits vary from 18 months to 5 years.
Cumulative rates:
With effect from December 26th, LIC Housing is offering a cumulative interest rate of 7.10% per annum on public deposits up to ₹20 crore for 18 months tenure, while the interest rate is 6.75% for deposits above ₹20 crore for the same tenure.
For 1-year tenure, the interest rate is 7% for deposits up to ₹20 crore and 6.75% for deposits above ₹20 crore.
As for 2 years tenure, the rates are 7.35% for up to ₹20 crore deposits and 7% for above ₹20 crore deposits.
Meanwhile, for 3 years and 5 years of tenure, the NBFC is offering 7.50% each on deposits up to ₹20 crore, and 7.25% each on deposits above ₹2 crore.
Under the cumulative scheme, interest will be compounded annually and paid on maturity along with the principal amount after deducting the tax wherever applicable.
Non-cumulative rates:
There are two options for non-cumulative interest rates such as monthly and yearly.
Monthly option:
Under this option, the NBFC is giving 6.90% on deposits up to ₹20 crore and 6.55% on deposits above ₹20 crore for 18 months of tenure. On 1-year tenure, the rates are 6.80% on deposits up to ₹20 crore and 6.55% on above ₹20 crore. The rates are higher at 7.10% for deposits up to ₹20 crore on 2 years tenure, and at 6.80% on above ₹20 crore deposits.
For 3 years, the rates are 7.25% on deposits up to ₹20 crore and 7% on deposits above ₹20 crore. While the rate is at 7.35% on deposits up to ₹20 crore and 7% on above ₹20 crore.
Yearly option:
For public deposits up to ₹20 crore, the NBFC is offering a 7.10% rate on 18 months, 7% on 1 year, 7.35% on 2 years, and 7.50% each on 3 years and 5 years tenure.
On deposits above ₹20 crore, the NBFC is giving 6.75% each on 18 months and 1 year, 7% on 2 years, and 7.25% each on 3 years and 5 years tenure.
Under a non-cumulative scheme, the interest is paid on March 31st under the annual option. Under the monthly option, the interest is paid on the 1st day of the month and on March 31st for the month.