LIC FD Scheme LIC’s new fixed–return style deposit plans are attracting attention among small and medium investors who are looking for secure options with predictable earnings. Many online discussions mention that an investment of ₹1.5 lakh can generate around ₹9,750 as yearly interest, which naturally raises curiosity among people planning short-term savings. However, before making any financial decision, it is important to understand how these plans actually work, what the expected return depends on, and which conditions apply. LIC itself is primarily an insurance organization, but through its financial and housing finance subsidiaries it provides deposit-type schemes that function similarly to traditional bank fixed deposits, offering stability rather than market-linked risk. For individuals who prefer safety over high volatility, such structured plans often become a comfortable savings route.
LIC FD Scheme 2026 – Information Table
| Feature | Details |
|---|---|
| Investment Type | Fixed Return Deposit-Style Plan |
| Example Investment | ₹1,50,000 |
| Approx. Interest (1 Year Example) | ₹9,750 (at ~6.5% illustrative rate) |
| Risk Level | Low to Moderate |
| Tenure Options | Short-Term to Medium-Term |
| Senior Citizen Benefit | Extra Interest Possible |
| Application Mode | Online & Offline |
| Eligibility | 18+ Indian Citizens with KYC |
| Withdrawal | Penalty Possible on Early Exit |
| Taxation | TDS May Apply |
What Is LIC FD Scheme Investment Plan?
LIC does not usually run a direct bank-style FD under its main insurance division, but its associated financial arms and housing finance companies provide fixed-tenure deposit schemes that operate in a similar manner. In these plans, investors deposit a lump sum for a specific period and receive a predetermined interest rate that remains largely unaffected by stock market fluctuations. The primary attraction is predictability, where investors know in advance how much they will earn at maturity. These plans are generally designed for conservative investors who prioritize capital safety over aggressive growth, making them suitable for salaried individuals, retirees, and families planning near-future expenses.
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How ₹1.5 Lakh Can Earn Around ₹9,750 Interest
The frequently mentioned interest figure of ₹9,750 is based on a simple annual interest calculation using an approximate rate near 6.5 percent. If a person deposits ₹1,50,000 for one year at this estimated rate, the yearly interest amount may come close to that number. However, this is only an illustrative example, not a guaranteed universal return. Actual earnings depend on the selected tenure, prevailing interest rate at the time of investment, and compounding structure if applicable. Interest rates may increase or decrease depending on economic conditions, policy changes, and financial institution announcements, so checking the latest official rate before investing is always necessary.
Key Features of LIC Fixed Return Plans
These deposit-style plans generally provide a secure investment environment with fixed maturity periods and comparatively stable returns. Since they are not directly tied to equity markets, the risk level is lower compared to mutual funds or shares. Senior citizens may receive slightly higher interest benefits as an added advantage, encouraging retirement savings. Investors often have both online and offline application options, making accessibility easier for people in urban as well as semi-urban regions. The structure usually supports single or joint holding, providing flexibility for families who want shared financial planning.
Who Can Invest in LIC-Linked Deposit Schemes?
Most adult Indian citizens above the age of 18 can apply for such schemes provided they complete the required KYC documentation. Investment can be done individually or jointly depending on preference and financial goals. Identity proof, address verification, and bank account details are typically required during registration. These schemes are commonly chosen by salaried professionals, small business owners, homemakers planning savings, and senior citizens seeking predictable income streams without exposing their capital to high risk.
Important Points to Consider Before Investing
Before committing funds, investors should verify the current interest rate through official channels rather than relying only on advertisements or informal messages. Understanding the lock-in period is crucial because premature withdrawal may attract penalties or reduced interest payouts. Tax implications must also be reviewed since TDS or other deductions may apply depending on income slabs and national tax regulations. Consulting a certified financial advisor or reviewing authentic institutional documents can help avoid misunderstandings and ensure that the investment aligns with personal financial objectives.