Hawkins Cookers FD will open for investors from September 16, offering interest rates of up to 8% per annum on deposits for three years.
Applications will begin from 9:30 am and will be accepted on a first-come, first-served basis.
Hawkins Cookers FD Interest Rates and Tenures
The new fixed deposit scheme offers 7.5% interest for 13 months, 7.75% for 24 months and 8% for 36 months. Investors can choose between cumulative and non-cumulative deposit options.
Under the cumulative option, interest is compounded monthly and paid along with the principal at maturity.
For a minimum deposit of ₹25,000, the maturity amount is ₹27,109 after 13 months, ₹29,177 after 24 months and ₹31,756 after 36 months.
The non-cumulative option pays interest every six months. The applicable rates remain 7.5%, 7.75% and 8% for the 13-month, 24-month and 36-month tenures respectively.
Hawkins Cookers FD Minimum Deposit and Limit
The minimum amount required to open the FD is ₹25,000.
Additional investments can be made in multiples of ₹1,000, while the maximum amount that can be placed in new or renewed deposits under the scheme is ₹50 lakh.
The deposit scheme is unsecured and has been assigned an [ICRA] AA- (Stable) rating.
This rating indicates high credit quality, although investors should remember that a corporate FD is different from a bank fixed deposit and carries its own risks and terms.
How Hawkins Cookers FD Interest Will Be Paid
For investors choosing the non-cumulative option, interest will be paid on a half-yearly basis.
For cumulative deposits, the interest is compounded monthly and becomes payable with the principal when the deposit matures.
Interest payments and repayment of deposits will be made through modes such as ECS, direct credit, RTGS or NEFT, subject to applicable regulations.
The company plans to use funds raised through the scheme for working capital, research and development, expansion of production capacity and unforeseen requirements.
What Investors Should Check Before Applying
The highest interest rate under the new scheme is 8% for 36 months, but investors should not judge a corporate FD only by its advertised return.
The credit rating, tenure, liquidity, taxation and terms for premature withdrawal should also be considered before investing.
The latest rates are also lower than some of Hawkins Cookers’ earlier offerings. For example, the company’s 2019 scheme offered 10.5% per annum on three-year deposits, compared with 8% under the new scheme.
