LIC FD: Earn ₹42,500 Fixed Interest on ₹1 Lakh Investment
The LIC FD Scheme is creating a buzz among Indian savers who want safe and good returns on their investments. The Life Insurance Corporation of India (LIC), known for its insurance and pension plans, also offers attractive fixed deposit schemes through LIC Housing Finance. In 2025, the LIC Fixed Deposit Scheme is popular because of its competitive interest rates and solid returns when the FD matures. It’s a great option for those who want guaranteed returns without worrying about market ups and downs.
Right now, the LIC FD Scheme offers up to 7.75% interest per year for regular investors and up to 8.50% for senior citizens. This makes it one of the best FD options available. A big plus is that a ₹1,00,000 investment can grow to ₹1,42,500 for senior citizens over five years. Since many banks offer lower interest rates, more people are looking at LIC for stable earnings. This article will cover all the important details, including interest rates, maturity amounts, tenure options, and how it compares to bank FDs.
High-Return Features of LIC FD Scheme
The LIC FD Scheme stands out because it offers returns that are similar to those of leading small finance banks, but with the added trust and stability of LIC. The highlight is the 7.75% annual rate for regular investors on long-term deposits. This ensures savers earn more than what many regular and rural banks offer.
LIC’s fixed deposits are designed for people who want safe investments with predictable results, making them perfect for salaried employees, homemakers, pensioners, and those who prefer low-risk options.
Senior citizens get even better benefits, with the highest FD rate at 8.50%. This gives them better security and higher income during retirement. With a ₹1,00,000 deposit, seniors can earn a fixed interest of ₹42,500 over five years. Investors can choose terms from 1 to 5 years based on what they need. The flexible structure makes it a good solution for both short-term and long-term financial planning. The ability to invest up to ₹20 crore also makes this FD attractive for businesses, institutions, and high-net-worth individuals.
How LIC FD Scheme Compares with Bank Fixed Deposits
Banks in India offer a variety of FD interest rates, but most major banks offer lower returns than the LIC FD Scheme. For example, Capital Small Finance Bank currently offers a maximum of 7.15% to regular customers and 7.65% to senior citizens. Suryoday Small Finance Bank offers a maximum of around 7.70%. Regional rural banks like Aryavart Bank usually offer even lower interest rates, between 5.05% and 5.50%, which aren’t great for long-term savers looking to beat inflation.
Compared to these rates, the LIC FD Scheme clearly offers better returns, especially for senior citizens. The difference in maturity amounts becomes significant over longer terms. While many banks offer below 7.5%, LIC’s 7.75% to 8.50% range allows savings to grow faster. The added benefit is LIC’s strong reputation in the financial sector. Many investors prefer LIC deposits because they combine safety, trust, and better interest rates, making them a strong alternative to traditional bank FDs.
Maturity Examples & Return Breakdown
To help investors understand potential returns, LIC has provided several maturity examples. A regular investor who deposits ₹50,000 for 3 years at 7.25% will receive ₹60,875 when it matures. This shows how even smaller deposits can generate good profits with low risk. For a 5-year term at 7.75%, the same ₹50,000 becomes ₹69,375. These examples show that the scheme provides consistent growth without exposing investors to market risks or interest rate changes.
Similarly, a ₹1,00,000 deposit at 7.75% for 5 years grows to ₹1,38,750. For senior citizens at 8.50%, the maturity amount increases to ₹1,42,500. This clearly shows that senior investors benefit the most from the LIC FD Scheme. The interest rates are suitable for savers who want predictable, guaranteed income, especially retirees who want stability. These maturity calculations are straightforward and help people plan their financial goals, whether they are saving for emergencies, long-term needs, or regular monthly income.
Should You Invest in LIC FD Scheme?
The LIC FD Scheme is a good fit for investors who prioritize safety over high risk. It offers predictable returns, clear maturity values, and competitive interest rates. With its 7.75% to 8.50% structure, the scheme appeals to investors who want better-than-average FD returns without market uncertainty. It is particularly beneficial for senior citizens looking for stable income. Additionally, the high upper limit of ₹20 crore makes it useful for large-scale investors and institutions.
However, like any financial decision, investors should consider their risk tolerance, liquidity needs, and financial goals before investing large amounts. Fixed deposits lock in money for the chosen period, so it’s important to have enough savings available for emergencies. LIC also recommends consulting a financial advisor or visiting the nearest LIC office for personalized advice. For those seeking a safe, trusted, and high-return FD option, the LIC FD Scheme remains a strong choice in 2025.
Disclaimer: This article is for informational purposes only. Interest rates and financial details may change over time. Investors should verify all information with LIC or a qualified financial advisor before making any investment decisions.
