LIC launches Bima Account I and Bima Account II
LIC has launched two non linked plans Bima Account I and Bima Account II. These are the first variable insurance plans under the new IRDA regime. The basic structure of the two plans are same and hence the similar names. The plans have guaranteed minimum returns. In Bima Account I there is no medical examination!
Under the plans, the premiums paid by the customer, after deduction of charges, will be credited to the policy holder's account maintained separately for each policyholder. If all due premiums are paid, the amount held in the policyholder's account will earn an annual interest rate of 6% per annum which will be guaranteed for the whole of the policy term. In addition to this guaranteed return, if all due premiums are paid, the individual policyholder's account may earn an additional return depending upon the experience under the plan.
If premiums are not paid within days of grace, the policy will become a paid up policy. The life assured has the option to revive the paid-up policy within 12 months from date of first unpaid premium. During the revival period the life cover will cease and no mortality charges shall be deducted. The balance in the policyholder's Account during the period of revival will earn guaranteed interest rate of 5% per annum without debiting any expenses. On revival of policy, the guaranteed rate of interest on policyholder's account will again be 6% per annum from the date of revival.
There is an option to pay additional (top up) premiums without any increase in risk cover to the extent of total basic premiums paid under the policy. Loan facility is available immediately after the first policy anniversary.
The premiums can be paid regularly at yearly, half-yearly, quarterly or monthly (through ECS mode only) intervals over the term of the policy.
The age entry for the Bima Account I is from 11 years to 50 years while it is from 8 years to 60 years for Bima Account II. The policy term for Bima Account I ranges from 5 to 7 years, while it ranges from 10 to 15 years for Bima Account II.
The minimum premium is Rs600 per month under ECS mode for Bima Account I. while it is Rs1,250 under Bima Account II.
Dhanlaxmi Bank offers interest rate of 9.35% p.a. for 500 days deposits; 9.85% p.a. for senior citizens
Dhanlaxmi Bank has increased its domestic term deposit rates by 25 to 50 basis points. The new rates will be effective from 3 February 2011 are applicable for term deposits of Rs15 lakh and above and up to and inclusive of Rs1 crore.
To strengthen the retail liability base, the bank has bifurcated the card rate slab into two- for term deposits less than Rs15 lakh and for term deposits of Rs15 lakh and above and up to and inclusive of Rs1 crore. Earlier, the bank offered maturities for deposits up to and including Rs50 lakh.
The recently introduced medium term maturity of 500 days will continue to be offered at a peak interest rate of 9.35% p.a., an increase of 35 bps. Senior citizens will be offered peak rate of 9.85% p.a.
Interest rate on medium term deposits with maturity period between 91-179 days has been increased by 25 bps to 7.50% p.a. Rates for deposits with a tenor of between 180-365 days has been increased by 50 bps to 8.50% p.a.
Rates for short term deposits between 7-14 days, 15-45 days and 46-90 days have been kept unchanged at 3.50%, 5.00%, 6.00% respectively.
Interest rates for long term maturities of 366-499 days, 501 days & above up to and inclusive of 2 years and for the bucket of above 2 years up to and inclusive of 5 years too have been kept unchanged at 8.60%, 8.60% and 8.75% respectively.
Senior citizens will be eligible for an additional rate of 0.50% p.a. for tenures starting from 180 days and above, as before.
DSP BlackRock Mutual Fund’s new issue closes on 3rd February
DSP BlackRock Mutual Fund has launched DSP BlackRock FMP-3M-Series 29, a close-ended income scheme.
The primary investment objective of the schemes is to seek capital appreciation by investing in a portfolio of debt and money market securities. The scheme will invest only in such securities which mature on or before the date of maturity of the Schemes. The schemes may also use fixed income derivatives for hedging and portfolio balancing.
The new issue opens on 2nd February and closes on 3rd February. The minimum investment amount is Rs10,000.