The Life Insurance Corporation of India (LIC) has long been one of the most trusted names in India when it comes to safe investments and guaranteed returns. Recently, LIC has introduced a new FD-style investment plan that is attracting attention for its promise of stable monthly income. Reports suggest that with an investment of ₹1.5 lakh, investors could receive ₹9,500 per month under a special fixed deposit-linked income plan. Let’s explore what this LIC FD scheme offers, how it works, and what investors should know before investing.
LIC’s New FD Scheme Overview
The new LIC FD 2025 scheme aims to provide investors with a fixed monthly income while keeping their principal amount safe under government-backed assurance. The scheme works on the principle of a non-cumulative fixed deposit, meaning interest is paid out monthly instead of at maturity.
This plan is designed especially for senior citizens, salaried employees, and conservative investors looking for a predictable monthly income source without exposing their capital to market risks. The reliability of LIC, combined with the comfort of regular income, makes this FD plan an attractive option for small investors.
Investment Example: ₹1.5 Lakh for ₹9,500 Monthly
According to the example circulating online, if an investor deposits ₹1.5 lakh under the LIC FD monthly income plan, they can receive approximately ₹9,500 per month as returns.
However, investors must note that such high monthly returns are subject to the scheme’s specific structure, such as bonuses, maturity-linked benefits, or insurance-linked returns. Standard fixed deposits do not generally offer this level of yield from ₹1.5 lakh. Hence, the ₹9,500 payout may include combined benefits from interest, insurance bonuses, or other add-on components depending on the plan type.
Interest Rate and Payout Options
Currently, LIC’s subsidiary — LIC Housing Finance Ltd (LIC HFL) — offers interest rates between 6.9% and 7.75% per annum on its fixed deposits, depending on the tenure and type (cumulative or non-cumulative).
For standard FD investors:
- At 7.5% annual interest, ₹1.5 lakh would generate approximately ₹937 per month in interest income.
- To achieve ₹9,500 per month, investors would typically need to invest around ₹15 lakh, not ₹1.5 lakh.
This shows that while LIC FD schemes are secure and beneficial, investors should read the fine print and verify actual returns with the nearest LIC branch or LIC HFL office before committing funds.
Key Features of LIC FD Schemes 2025
The LIC FD scheme comes with several attractive features designed to combine security, steady income, and flexibility:
- Minimum Investment: ₹10,000
- Tenure Options: 1 year to 5 years
- Interest Payment: Monthly, Quarterly, or Cumulative (at maturity)
- Premature Withdrawal: Allowed after a minimum lock-in period with nominal penalty
- Loan Facility: Up to 75% of the FD value available as loan
- Safety Rating: AAA (Stable) by CRISIL, ensuring high credit safety
For senior citizens, the interest rate is usually 0.25% higher, offering slightly better monthly income.
Why Investors Prefer LIC FD Schemes
LIC’s strong credibility and consistent performance make its deposit schemes a top choice for risk-averse investors. Compared to bank FDs, LIC’s rates are often marginally higher, and the brand’s long-standing reputation builds additional trust.
Moreover, the monthly payout option is especially appealing for pensioners and retirees who depend on regular cash flow to meet living expenses.
Comparison with Other FD Schemes
| Institution | Average Interest Rate (p.a.) | Safety Rating | Special Benefit |
|---|---|---|---|
| LIC HFL | 6.9% – 7.75% | AAA (CRISIL) | Govt-backed reliability |
| SBI FD | 6.5% – 7.1% | AAA | Senior citizen extra rate |
| HDFC FD | 7.25% | AAA | Flexible tenure |
| Post Office TD | 6.9% | Govt-backed | 5-year tax saving option |
The comparison shows that LIC’s FD returns are on par with leading banks but backed by the strong brand trust of LIC, making it an ideal choice for those seeking a secure, guaranteed income investment.
How to Apply for LIC FD Scheme
You can open an LIC FD account online through the official LIC Housing Finance website (lichousing.com) or offline by visiting any nearby LIC HFL office. You will need to submit KYC documents such as Aadhaar, PAN, address proof, and a passport-size photo. Investors can choose their preferred tenure, payout frequency, and nominee details during account opening.
Conclusion: LIC FD Schemes 2025
The LIC FD Scheme 2025 continues LIC’s tradition of offering safe, dependable, and steady-income investment options for Indians. While the claim of earning ₹9,500 per month from ₹1.5 lakh may not apply to standard FD plans, LIC’s fixed deposits remain one of the most secure and reliable savings instruments available today. If you seek guaranteed returns, flexibility, and peace of mind, LIC FDs are worth considering — but always verify the actual yield before investing.
Disclaimer: The details provided are based on current LIC and LIC HFL deposit schemes and available public information as of 2025. The ₹9,500 monthly return example is an indicative figure circulating online and may not represent actual returns. Always verify interest rates, maturity values, and terms with authorized LIC offices before investing.
