Wary of market volatility? Consider HDFC’s 7.5% offer

Mumbai: HDFC, the country’s mortgage lending pioneer, is offering depositors 7.5% locking funds for 45 months. And it’s a good bet for those who don’t prefer the rough and turbulent goings-on of a volatile stock market.

“There are a number of investors who don’t understand the nuances of stocks and mutual funds and want simple products like deposits that have a fixed term with visible returns,” said Abhay Mathure, a financial products distributor.

Beware of market volatility? Consider HDFC's 7.5% offer

HDFC offers at least one percentage point more returnq than traditional frontline lenders. It offers an additional 5 base points for using the online mode and 25 base points for seniors. One basis point equals 0.01%.

There is one caveat: unlike bank term deposits, corporate deposits carry higher penalties for early withdrawals. Subscribers would benefit most if the instruments were held to maturity.

To attract more money and stay competitive with banks, companies offer higher deposit rates. Investors prefer companies with strong pedigrees and track records.

“This deposit gives you an opportunity to earn 100-150 points more than bank deposits or small savings products,” said Vinayak Kulkarni, a financial products distributor.

https://economictimes.indiatimes.com/markets/stocks/news/wary-of-market-volatility-consider-hdfcs-7-5-offer/articleshow/95367610.cms Wary of market volatility? Consider HDFC’s 7.5% offer

Russell Falcon

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