LIC FD Schemes: Who in India doesn’t know LIC (Life Insurance Corporation of India)? It’s one of the oldest and most trusted companies in the country. But did you know that LIC is not just an insurance company, but also offers various investment options?
One such option is the LIC Fixed Deposit scheme, known for providing secure investments and guaranteed returns to its customers.
LIC offers several special fixed deposit schemes. What is this LIC Fixed Deposit scheme, what are its features, what is the interest rate, what are the eligibility criteria, and what are the required documents and investment process? Let’s find out all this information in this article.
The Fixed Deposit scheme is operated by LIC Housing Finance Limited and is also known as a Corporate Fixed Deposit. This scheme is designed for those who want secure, fixed, and high-interest returns.
The minimum investment in LIC is ₹1 lakh, and there is no maximum limit. The interest rate offered on LIC fixed deposits ranges from 7.25% to 7.75%. Senior citizens receive an additional interest rate. LIC offers fixed deposit schemes for periods ranging from 1 year to 5 years. Let’s find out how much interest you will get on a fixed deposit of ₹1.5 lakh in LIC.
Key Highlights of the FD Scheme
The FD scheme is offered by LIC Housing Finance Limited. Currently, this FD scheme offers an interest rate of 7.25% to 7.75%. Senior citizens receive an additional 0.25% interest. The most notable feature is that the interest rate in this scheme is more than 7%.
Interest Payment. In this Fixed Deposit scheme, you receive interest every month. For example, if you invest ₹15 lakh in a fixed deposit with an annual interest rate of 7.8%, you will receive ₹9050 every month. This is how you will receive interest on a monthly basis.
Minimum Amount and Investment Validity
If you want to invest in LIC’s Fixed Deposit scheme, the minimum investment is ₹100,000, and there is no maximum limit specified.
Tax Benefits from this FD Fixed Deposit Scheme
If you invest ₹5 lakh in the fixed deposit scheme issued by LIC, you can avail tax benefits under Section 80C of the Income Tax Act. Additionally, if your interest income does not exceed ₹40,000, you can also get relief from TDS by filling out Form 15G/H.
Documents Required to Invest in the Scheme
Identity Proof
Address Proof
PAN Card
Passport Size Photograph
Bank Account Details
To invest in this scheme, you can visit your nearest LIC branch. There, you will have to fill out the FD form and submit the required documents. You can make the payment through check or demand draft. You will also receive a Fixed Deposit certificate.
Loan Facility Available through LIC FD Scheme!
If you open an LIC Fixed Deposit, you can avail a loan facility against your LIC FD after 6 months.
Premature withdrawal of the FD is possible after three months, but premature withdrawal may result in a reduction in the interest rate. No interest is paid if the withdrawal is made before 6 months.