Hawkins Cookers Fixed Deposit – A Good Fixed Income Opportunity

Hawkins Cookers Fixed Deposit – A Good Fixed Income Opportunity

Most of us have a chunk of our investments in financial assets in Bank Fixed Deposits. However, it’s a well known fact that tax-adjusted returns from Bank Fixed Deposits fail to beat the inflation or may actually give negative real returns after adjusting for tax and inflation. Hawkins Cookers, the company which is a household name, courtesy of its iconic Hawkins cookers and cookw­are, has come out with an attractive Fixed Deposit Scheme which could help you beat Bank FD returns by a significant margin. Read below to know the details and our view.

Details of the Fixed Deposit Scheme

Resident Individuals & Domestic Companies can apply for the cumulative/ non-cumulative scheme available for tenors ranging from 12 months to 36 months while interest rate ranges from 11.25% to 11.75% per annum.

Tenor (months) Interest rate per annum
12 11.25%
24 11.50%
36 11.75%

Source – Company

Scheme Options The above scheme is available in cumulative (interest compounded monthly) & non-cumulative (interest payment semi-annually) options
Minimum Deposit Amount Rs. 25,000 for both scheme options. Additional deposits accepted in multiples of Rs. 1,000
Nature of Deposit Unsecured
Eligibility Resident Individuals & Domestic Companies
Withdrawal Pre-mature withdrawal is not permitted. However, after 6 months of date of Deposit, the company at its sole discretion may permit pre-mature withdrawal
Credit Rating [ICRA] MAA (Stable)
Tax Treatment Taxes will be applicable similar to Bank FDs. TDS will be deducted.
Nominee Facility Available
Joint Deposits They can be opened with maximum 3 joint names
Period Effective 15th Sep, 2015

Source – Company

How to Apply for the FD?

The application procedure is very simple – An application form can be downloaded from the company’s website and submitted to the registered office of the company alongwithcheque/DD.

GreenEdge Wealth Services’ View – Should You Invest in Hawkins Cookers’ FD?

Hawkins’ FDs offer superior fixed returns ranging from 11.25% to 11.75% vs. Govt. Bonds & Bank FDs offering <=8% returns over similar tenors as highlighted in the below exhibit.

Fixed Returns Comparision – Govt. Bonds vs. Bank FD vs. Hawkins FD




Govt. Bonds Bank FDs* Hawkins FD
12 months 7.4% 7.25% – 7.75% 11.25%
24 months 7.7% 7.65% – 8% 11.50%
36 months 7.8% 7.75% – 8% 11.75%

*Bank FD rates considered from SBI, HDFC Bank & ICICI Bank

Hawkins clearly offers at least 3.25% higher returns vs. Bank FDs &Govt Bonds. Although these are unsecured fixed deposits, the management integrity and the company’s past track record adds a lot of safety to ones investment.

We believe that investors who are willing to lock-in their money for 1/2/3 years can allocate some part of their fixed income portfolio to Hawkins’ FDs as it offers superior fixed returns with high credit quality and low risk.