ICICI Home Finance Company Ltd, a wholly owned subsidiary of ICICI Ltd, has launched its fixed deposit (FD) schemes today.
Launched with four initial schemes, they can be availed for seven, five and three years with the interest rates being offered at 9.85 per cent per annum, 9.80 per cent per annum and 9.75 per cent per annum respectively.
The minimum amount for the cumulative income plan and the annual income plan is Rs 5000, for the semi-annual income plan it is Rs 10,000 and for the monthly income it is a minimum of Rs 20,000.
The depositor also can opt for a premature withdrawal after three months from the date of deposit.
An individual or Hindu undivided family(HUF) can also avail of a loan against these deposits after three months from the date of deposit.
The tax benefits for this fixed deposit scheme are :no tax deducted at source interest up to Rs 5000 and for interest up to Rs 9000, Section 80L of the Income Tax Act can be utilised.
The fixed deposit program has been rated an AAA(FD)(SO) by Care, indicating best investment quality and negligible investment risk.
This rating has been issued after a credit enhancement by ICICI Ltd with a letter of comfort. This letter indicates that the parent company will help its wholly owned subsidiary to avail of funds in order to meet its fixed deposit obligations.
