LIC FD Scheme : In today’s world, most people look for investment opportunities that offer both high returns and maximum security for their capital. While Bank FDs are a popular choice, LIC (Life Insurance Corporation of India) stands as a highly trusted institution where you can invest your money in Fixed Deposits to earn significant profits.
Like banks, LIC offers various FD schemes and investment plans. Here is a detailed look at how much return you can get by investing ₹100,000 in an LIC FD.
LIC FD Scheme What is LIC ?
LIC stands for the Life Insurance Corporation of India. It is the largest government-owned life insurance company in India. Its primary goal is to provide life insurance services and ensure financial security for the public. Beyond insurance, LIC is one of India’s largest institutional investors and plays a vital role in the country’s economic growth.
Key Features of the LIC FD Scheme
| Feature | Details |
|---|---|
| Scheme Provider | LIC Housing Finance Limited (LIC HFL) |
| Investment Safety | Government-backed entity, considered extremely safe |
| Income Option | Monthly interest credited directly to the bank account |
| Interest Rate (General Public) | Approximately 6.45% per annum |
| Interest Rate (Senior Citizens) | 6.70% per annum (additional 0.25%) |
| Special FD Schemes | Interest rates can exceed 7% per annum LIC |
Monthly Interest Payouts
One of the highlights of this scheme is the monthly income option.
Example 1: If you invest ₹10 Lakhs at an annual interest rate of 7.8%, you would receive approximately ₹6,500 per month. This totals an annual interest of ₹65,000.
Example 2: If you invest ₹100,000, your monthly interest income will range approximately between ₹530 and ₹650, depending on the specific rate and tenure.
Investment Limits and Tenure
Minimum Investment: ₹100,000.
Maximum Investment: No upper limit.
Tenure: You can choose a period ranging from 1 year to 5 years (or more in some cases)
Tax Benefits and Loan Facilities
- Tax Savings If you invest in a 5-year FD, you can claim tax deductions under Section 80C of the Income Tax Act.
- TDS If your interest income is below ₹40,000, you can avoid TDS by submitting Form 15G/15H.
- Liquidity & Loans Withdrawal is generally possible after a 6-month lock-in period.
- Investors can also avail of loan facilities against their FD if they need immediate funds without closing the account.
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