LOLC Finance Fixed Deposits offer guaranteed returns on your savings invested for various tenures. This article provides full details on prevailing LOLC FD rates, interest calculation methods, available tenures, senior citizen benefits and more for 2024.

Overview of LOLC Finance Fixed Deposits

LOLC Finance PLC allows customers to invest lumpsum amounts in fixed deposits for tenures ranging from 1 month to 60 months. The deposits offer guaranteed returns as per prevailing interest rates applicable on the date of deposit.

As one of Sri Lanka’s leading financial services groups

LOLC offers attractive FD rates coupled with the highest safety on deposited money. Interest accrues based on the cumulative, simple interest system. Income tax exemptions apply on certain FD investments as well.

Below are the latest LOLC FD Rates on offer across different tenures:

Customers enjoy complete liquidity on deposits by having the flexibility to choose tenures aligned to financial needs. Additional rates may apply for senior citizens or preferential customer segments as highlighted later.

How Interest Accrues on LOLC Fixed Deposits

LOLC Finance Fixed Deposits calculate simple interest on the invested amount as per applicable rates linked to respective deposit periods.

Interest computation factors in daily reducing balances. However, income tax is not deducted at source, allowing investors full gains.

Accrued interest gets cumulated with the principal amount upon maturity for any reinvestment. Quarterly interest payouts are also available if required.

The following formula governs interest calculations:

Total Maturity Value = Principal Amount + (Principal x Interest Rate % x Tenure fraction)

To understand this better, assume a deposit of Rs 500,000 invested for 2 years at 12% annual interest. Accrued interest will be:

= 500,000 + (500,000 X 12% X 2)

= 500,000 + 120,000

= Rs 620,000 total maturity value

Compounding effect does not apply. This simple interest system allows maximum clarity without complex math.

LOLC FD Returns Across Different Tenures

LOLC Finance offers fixed deposit tenures spanning 1-60 months to cater to both short term parking needs and long term locking objectives.

While longer tenures fetch higher percentage returns, investors should align durations to planned liquidity requirements.

Here is an overview of prevailing LOLC FD returns across key tenures:

1-12 Months Tenures

Shorter FDs work well for temporary surplus funds or bridging liquidity gaps for 1-2 years.

12 month deposits offer the highest 1 year yield of 12%. Even 1-3 month deposits fetch over 10%.

2-5 Year Tenures

For longer locking, the best LOLC FD rates come for 2-5 year buckets allowing wealth expansion.

The peak 60 month rate is 14% allowing substantial capital appreciation over the 5 year horizon.

Customers targeting major future expenses 2-3 years away can lock into attractive 12-13% returns in the interim.

Senior Citizens LOLC FD Interest Rates

Senior citizens enjoy additional rate benefits across select tenures including:

So at maximum maturity, seniors can earn up to 15% interest on 60 month FDs with LOLC!

This allows seniors to grow retirement corpus steadily leveraging the accrual benefit over long deposit periods.

To be eligible, the first holder in the resident Sri Lankan application should be over 60 years old. Nominees can also invest on behalf owners meeting age criteria. Know Your Customer (KYC) documentation is required.

Minimum LOLC FD Investment Amounts

LOLC Finance facilitates convenient FDs starting from affordable minimum investments including:

Senior citizens can open accounts with just Rs 1,000 irrespective of FD option chosen.

Investors can start small for kids, then scale up amounts for wealth creation as savings grow. No maximum limits exist.

Answers To Most Frequently Asked Questions

Here are some additional insights on common LOLC FD-related queries:

How is income tax applied on LOLC FD earnings?

No TDS deduction applies on interest earned, allowing investors full gains. Only personal income tax filings yearly per slab rates matter based on accrued earnings.

What FD options are available with LOLC Finance?

Besides regular fixed deposits LOLC also offers Flexi Averaging Deposits allowing dynamic tenures and interest liquidation choices. Institutional, Corporate accounts can also open company FDs.

Can customers opt for non-cumulative FD interest payout?

Yes, while most customers choose cumulative payout on maturity for reinvestment, LOLC also offers the flexibility of quarterly interest payouts for liquidity requirements. Just specify this at application.

How does premature withdrawal impact locked FDs?

Partial early withdrawals area allowed though interest reduced to four percent is only paid for tenure elapsed in case of full closure before minimum three months. Plan tenures per liquidity needs.

How safe is money invested in LOLC Finance FDs?

As a Registered Finance Company under CBSL regulation, LOLCFDs offer robust investor protection consistent with banking channels. Default risk is extremely minimal given company credit profiles and sound governance.

We hope this detailed overview helps you make informed LOLC FD investment decisions most aligned to your financial situation!