Fixed deposits (FDs) are one of the safest and most reliable investment options, especially for those who prefer stability over high-risk market fluctuations. The LIC Fixed Deposit Scheme allows investors to start with just ₹10,000 while offering interest rates up to 6.25% per annum. In this guide, we will explore the key details, benefits, and how you can invest in LIC’s FD scheme.
LIC Fixed Deposit Scheme
| Feature | Details |
|---|---|
| Minimum Deposit | ₹10,000 |
| Maximum Deposit | No upper limit |
| Interest Rate | Up to 6.25% per annum |
| Tenure Options | 1 year, 2 years, 3 years, 5 years |
| Interest Payout | Monthly, Quarterly, or Annually (Cumulative or Non-Cumulative) |
| Loan Facility | Available after 3 months (up to 75% of FD value) |
| Premature Withdrawal | Allowed with penalty |
| Eligibility | Individuals, HUFs, Firms, Companies, NRIs |
| Official Website | Visit LIC Official Site |
The LIC Fixed Deposit Scheme is an ideal investment choice for those looking for stable returns, flexible investment options, and high safety. With a minimum deposit of just ₹10,000 and interest rates up to 6.25%, this scheme is a great option for both retail investors and senior citizens. Whether you’re planning for the future, saving for retirement, or looking for low-risk investment options, LIC FD is a smart choice.
Why Choose LIC Fixed Deposit?
The LIC Housing Finance FD is a preferred investment option due to its government-backed reputation, flexible tenure options, and competitive interest rates. Here are a few reasons why this scheme stands out:
1. Safety & Reliability
As a subsidiary of LIC (Life Insurance Corporation of India), LIC Housing Finance enjoys high credibility and stability, making it a safe investment option.
2. Attractive Interest Rates
Investors can earn up to 6.25% interest per annum, depending on the tenure and depositor category (regular investor vs. senior citizen).
3. Flexible Investment Options
With multiple tenure options and both cumulative and non-cumulative schemes, you can choose the payout method that suits your financial needs.
4. Loan Against FD
Need emergency funds? LIC allows you to take a loan of up to 75% of your FD amount after 3 months.
see also: How to Build a Strong Fund of Rs 1 Lakh with a SIP of Rs 500
Interest Rates for LIC Fixed Deposits (2025)
Regular Depositors
| Tenure | Interest Rate (Per Annum) |
|---|---|
| 1 Year | 5.75% |
| 2 Years | 6.00% |
| 3 Years | 6.25% |
| 5 Years | 6.25% |
Senior Citizens (Extra 0.25%)
| Tenure | Interest Rate (Per Annum) |
|---|---|
| 1 Year | 6.00% |
| 2 Years | 6.25% |
| 3 Years | 6.50% |
| 5 Years | 6.50% |
Note: These rates are subject to change. Always check the official website for the latest updates.
How to Invest in LIC Fixed Deposit Scheme?
Step 1: Check Eligibility
- Must be an Indian Resident, NRI, or HUF (Hindu Undivided Family).
- Minors can invest under a guardian’s name.
- Companies, firms, and associations can also apply.
Step 2: Select the FD Type
LIC offers two types of fixed deposit schemes:
FD vs PPF: Where to Invest for Maximum Benefits?
- Cumulative FD – Interest is compounded annually and paid at maturity.
- Non-Cumulative FD – Interest is paid monthly, quarterly, or annually.
Step 3: Choose Tenure & Interest Payout
- Choose from 1-year, 2-year, 3-year, or 5-year tenure options.
- Select interest payout mode (monthly, quarterly, or yearly).
Step 4: Complete Application & Submit Documents
- Fill out the FD application form.
- Provide KYC documents:
- PAN Card
- Aadhaar Card
- Address Proof
- Passport-size Photograph
- Bank Account Details
Step 5: Make Payment & Receive FD Receipt
- Deposit the amount via cheque, online transfer, or UPI.
- Once processed, you will receive an FD receipt as proof of investment.
Premature Withdrawal & Loan Against FD
Premature Withdrawal Rules
- Allowed after 3 months.
- Penalty of 2% on interest rate for withdrawals before maturity.
Loan Against FD
- Available after 3 months.
- Loan amount up to 75% of FD value.
- Interest rate is 2% higher than FD interest rate.
see also: Every month you will get ₹ 20,000 pension in this plan of LIC
LIC Fixed Deposit Scheme FAQs
1. Is LIC FD Safe?
Yes! Since LIC Housing Finance is backed by LIC, it is one of the safest investment options in India.
2. What Happens If LIC FD Matures?
On maturity, the FD amount + accrued interest is automatically credited to your bank account.
3. Can NRIs Invest in LIC FD?
Yes, NRIs (Non-Resident Indians) can invest in LIC Fixed Deposits.
4. What Are the Tax Implications?
Interest earned is taxable under “Income from Other Sources”. TDS (Tax Deducted at Source) is deducted if interest exceeds ₹40,000 per year (Regular) / ₹50,000 per year (Senior Citizens).
5. How to Close LIC FD Before Maturity?
You need to submit a premature withdrawal request. A 2% penalty will apply.
