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How to Grow Your Savings with LIC Housing Finance Ltd.'s Fixed Deposits?

LIC Housing Finance Ltd. is a renowned financial institution in India that provides an array of financial solutions, including fixed deposits (FDs). If you're looking to grow your savings, LIC Housing Finance Ltd.'s FDs are an excellent option to consider, given their attractive interest rates and flexible tenure options.

Exploring the reasons why investing in LICHFL's fixed deposits can be a prudent decision:

Attractive Interest Rates Offered

LIC Housing Finance Ltd.'s FDs provide higher interest rates than conventional investment alternatives, including savings accounts. Currently, as of April 2023, the interest rates for LIC Housing Finance Ltd.'s FDs vary from 7.25% to 7.75% per annum, based on the tenure and the category of FD chosen.

Versatile Term Options Available

LIC Housing Finance Ltd.'s FDs feature a broad range of flexible tenures, varying from 1 year to 5 years. This enables you to select a term that aligns with your financial objectives and investment timeframe.

Assured Returns Offered

Investing in LIC Housing Finance Ltd.'s FDs assures you of fixed returns. This implies that you have a clear idea of the returns you will earn at the conclusion of the tenure. This facilitates better financial planning and aids you in accomplishing your financial objectives.

Secure and Reliable

LIC Housing Finance Ltd. is a dependable and trustworthy financial institution with a proven track record of serving its clients for over three decades. Investing in LIC Housing Finance Ltd.'s FDs is secure and reliable, as they hold a AAA credit rating from renowned credit rating agencies.

Convenient Investment Process

Investing in LIC Housing Finance Ltd.'s FDs is a hassle-free and straightforward process. You can conveniently invest either online or offline by visiting an LIC Housing Finance Ltd. branch. Additionally, you can use the online FD calculator to compute the maturity amount and the interest earned.

Let's delve into some strategies to optimize your savings with LIC Housing Finance Ltd.'s FDs.

Select the Appropriate Term

Choosing the right tenure is critical when investing in LIC Housing Finance Ltd.'s FDs. If you have short-term financial goals, consider a short-term FD with a tenure of 1-3 years. On the other hand, if you have long-term financial goals, a long-term FD with a tenure of 5-10 years may be more suitable. By doing so, you can ensure that you earn the maximum interest on your investment.

Opt for Cumulative FDs

LIC Housing Finance Ltd.'s FDs come in two types - cumulative and non-cumulative. Cumulative FDs reinvest the interest earned, compounding it annually. As a result, you earn interest on interest, leading to higher returns in the long term. If you don't require regular income from your investment, choosing a cumulative FD may be more beneficial.

Broaden Your Investment Portfolio

Diversification is crucial for any investment portfolio. Instead of investing all your savings in bank FDs, consider broadening your portfolio by investing in corporate fixed deposits such as LIC Housing Finance Ltd.'s FDs. Doing so can help you spread the risk and potentially earn higher returns.

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