Safe Deposits

ICICI has launched an attractive fixed deposit scheme

ICICI is approaching the investors with a fixed deposit scheme. The minimum amount that can be invested is Rs 10,000 and additional investments can be made in multiples of Rs 1000. Investors can choose between a cumulative deposit scheme and a regular income scheme. For the regular income scheme, investors will have the options of monthly, quarterly and annual interest payments. The interest will however be compounded on a monthly basis.

ICICI, the premier financial institution used to get cheap financing in the form of statutory liquidity ratio (SLR) funds before liberalisation. But post liberalisation, ICICI ceased to enjoy such benefits and has been forced to borrow from the market. Already it has raised money in the form of various bonds.

 

This is for the second time ICICI has come out with a fixed deposit scheme after 1994. Deposits can be made for varying periods, ranging from 18 months to 60 months. The best yield to maturity is for 60 months at 12.68 per cent per annum for cumulative deposits. Investors can also avail of tax benefits under Section 80L.

The deposits have been rated at the highest grade by Crisil, Care and Icra. The ratings indicate highest safety position with respect to the timely payment of interest and the principal. Given ICICIs status and background, the deposits will definitely be a safe bet for the cautious investor.