For people looking for safe investment in bank FD amid continuously falling interest rates. LIC Deposit scheme of housing finance has emerged as a good option. This scheme gives investors the benefit of guaranteed returns for a fixed period. If an investor invests ₹ 1 lakh in this scheme, then after 5 years he can get an amount of up to ₹ 1.34 lakh.
How much will investment increase in 5 years?
In the fixed deposit scheme of LIC Housing Finance, investors get returns as per the fixed interest rate. Investing for a period of 5 years gives the benefit of compounding, due to which the investment amount increases rapidly. For example, a lump sum investment of ₹1 lakh can grow to approximately ₹1.34 lakh in 5 years. That means the investor can get additional benefit of around ₹ 34,000.
safe investment option
In times of market fluctuations, many investors look for such options in which capital remains safe and returns are also assured. The deposit scheme of LIC Housing Finance falls in this category. This scheme can be useful for those who want to stay away from risky investments like stock market or mutual funds.
Senior citizens can get additional benefits
Like many deposit schemes, senior citizens are also given the benefit of additional interest rate. This can benefit investors planning for regular and secure income after retirement. However, interest rates may change from time to time, so it is important to know the current rates before investing.
Keep these things in mind before investing
Before investing in any deposit scheme, its duration, interest rate, premature withdrawal rules and tax related provisions should be understood thoroughly. Also, investors should also see whether this scheme is suitable as per their financial needs and goals or not.
For those who want fixed returns with low risk, this deposit scheme of LIC Housing Finance can prove to be an attractive option. The potential return on investment over a period of 5 years makes it a strong option in the safe investment category.
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