LIC FD Scheme : In today’s time, people prefer to invest their money in places where they can get good returns along with complete safety of their capital. Fixed Deposit (FD) schemes offered by banks remain one of the most popular investment options. Banks are considered a reliable medium to grow money steadily while ensuring security. Along with banks, the Life Insurance Corporation of India (LIC) is also a trusted financial institution where you can invest in fixed deposit schemes and earn attractive returns.
LIC offers multiple deposit and investment options just like banks. Besides FDs, LIC also provides a wide range of insurance policies, pension plans, and health insurance products that allow investors to earn stable profits. Let’s understand how much return you can earn if you invest ₹1,00,000 in LIC’s FD scheme.
LIC FD Scheme: Investment of ₹1,00,000
The Life Insurance Corporation of India (LIC) is the largest life insurance company in the country, owned by the Government of India. Its primary objective is to provide life insurance services and ensure financial security for people. Apart from life insurance, LIC also plays a key role as one of the largest institutional investors in India, contributing significantly to the nation’s economic growth.
LIC Housing Finance Limited (LIC HFL) operates the FD schemes, offering investors safe and secure returns. Under this scheme, the interest amount is credited directly to the investor’s bank account at regular intervals.
Key Features of LIC FD Scheme
- Interest Rates: Currently, LIC FD offers up to 6.45% annual interest. Senior citizens enjoy an additional 0.25% interest, and in special schemes, rates can go above 7%.
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Monthly Interest Payout: Investors receive interest payouts every month.
- For example, if you invest ₹10,00,000 at 7.8% annual interest, you can expect around ₹6,500 per month as interest income. This adds up to about ₹65,000 annually.
- Similarly, with an investment of ₹1,00,000, the monthly return would be approximately ₹530–₹650 depending on the prevailing interest rate.
Tenure & Minimum Investment
- Minimum investment amount: ₹1,00,000
- Tenure: 1 year to 5 years or more
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Maximum investment: No fixed upper limit
Tax Benefits on LIC FD
Investments made in LIC’s 5-year FD scheme qualify for tax deduction under Section 80C of the Income Tax Act. Additionally, if your annual interest income does not exceed ₹40,000, you can submit Form 15G/15H to avoid TDS deductions.
Loan Facility on LIC FD
LIC FD also provides the option of availing a loan against your deposit. After 6 months of investment, premature withdrawal is possible, along with access to loan facilities against the FD.
Conclusion:
LIC’s FD scheme is a safe, reliable, and rewarding investment option. With attractive interest rates, monthly income benefits, tax exemptions, and the security of a government-backed institution, it is an excellent choice for individuals looking to grow their savings without taking risks.