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LIC FD Interest Rates

5.25% -6.00%
Interest rates
1 Year - 5 Years
Time Period
10000 - No Limit
Min. - Max amount
ANNUALLY
Compounding

About LIC FD

The company was founded in 1989 and was sponsored by the LIC of India. It went public in 1994. The company is registered with the National Housing Bank and trades on the National Stock Exchange (NSE) and the Bombay Stock Exchange Limited (BSE). One of India's largest housing finance firms, LIC Housing Finance Limited (LIC HFL), offers a variety of Fixed Deposit plans to meet the demands of every type of investor. The Sanchay plan includes the LIC Housing Finance FD. LIC, among other advantages, provides competitive interest rates and a high rate of return on investment.

The duration of LIC Housing Finance FDs ranges from 36 months to 60 months, with a maximum rate of interest of 5.75 percent. Senior interest rates are higher than average, ranging up to 6.00 percent.

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Started On1989
Head QuartersMumbai
CRISIL RatingNA
CEOY Viswanatha Gowd
Listed on exchange asLIC Housing Finance Ltd
ICRA RatingNA

LIC FD Rates 2022

TenureRegular customersSenior citizens

Features and Benefits of LIC FD

  • The monthly option requires a minimum deposit of Rs.2 lakh.
  • The yearly option requires a minimum commitment of Rs.10,000.
  • Additional deposits in multiples of Rs.10,000 for monthly deposits and Rs.1,000 for yearly deposits are permitted.
  • Senior citizens earn an additional 0.25 percent on savings ranging from Rs.20,000 to less than Rs.20 crore.
  • There is a nomination facility provided.
  • After maturity, there is an automatic renewal option.
  • Deposits can be withdrawn in part.
  • Loan availability

Types of LIC FD Schemes

LIC Housing Finance FD - Sanchay

  • The FD must have been deposited for at least three months.
  • The loan will be given up to 75% of the deposit amount.
  • The interest rate will be levied at a rate of 2% per year over the FD rate.
  • The loan must be returned in full or offset against the maturity deposit amount.

Term wise LIC FD Rates

Short-Term Deposits

The Period that begins from 1 day - 1 year are known as short term fixed deposits, and their interest rates start from 5.25% to 5.5% depending on the number of days of the deposit for general customers, and it is from 5.5% to 5.7% for the senior citizens.

Medium-Term Deposits

A Medium-term fixed deposit, that is, from 1 year 5 months to 4 years 11 months, withhold interest rates is 5.65% to 5.75% for general customers and is 5.9% to 6% for senior citizens according to the period of lock-in.

LIC vs Other Banks' FD Rates

NameTenureInterest rate
1
2
3
4
5

How to invest in LIC FD?

For opening a LIC Housing FD account via offline mode, one has to visit the nearest LIC Housing branch. Fill out the LIC Housing FD application form and present all the necessary documents with the deposit amount. On successful application processing, an FD receipt will be provided by LIC Housing.

 

Eligibility to Open an LIC FD Account

Individuals or entities satisfying the following criteria can opt for a fixed deposit in LIC–

  • Individuals, and for minors, a joint account along with a guardian
  • Partnership firms
  • Sole proprietors
  • NRIs
  • Joint-stock companies
  • Clubs, associations, and trusts
  • Hindu undivided families (HUF)

Documents Required to Open LIC FD

The following documents have to be furnished for opening a LIC FD–

  • PAN Card
  • 2 Photographs of the depositor
  • FD application form
  • ID proof (PAN Card, Aadhar Card, Driving License, or Passport)
  • Address proof (Electricity Bill, Telephone bill or any other utility bill, Aadhar Card)
  • Age proof (Birth certificate, matriculation certificate, Discharge certificate, PAN Card)

FAQs

What are the possible LIC FD interest payment options?

The interest on all cumulative term deposits will be paid and compounded annually, and the client will be paid at maturity. Interest will be paid on all non-cumulative time deposits on March 31st of each year.

What are the penalties for failing to give PAN card information while applying for an FD?

The following are the ramifications:

  • TDS will be deducted at a higher rate of 20% rather than the standard 10%. A TDS certificate will not be given.
  • The Income Tax Department may deny you TDS credit.
  • All tax exemption certificates will be ruled void.

What are the various interest payment options?

Customers have the option of choosing between cumulative and non-cumulative term deposits.

Is it possible for me to create a joint account?

Yes. However, interest payments shall only be made in the name of the original depositor.

How is the account holder's interest paid?

The interest is credited straight to the FD holder's bank account via ECS.

How is premature withdrawal permitted?

Withdrawals are permitted three months from the start of the FD.

Completed Period

Interest Rates

3 Months - Less than 6 Months

3% per annum

6 Months - Before Maturity

1% less than the applicable rate

For 6 Months and before maturity: If no interest rate is specified for a given time, the interest due will be 2% less than the lowest rate at which public deposits are accepted.

What are the highlights of the scheme?

The interest rates given by LIC HFL are determined by a variety of variables. Internal and external factors may be included. Some of these factors might include Reserve Bank of India (RBI) regulations, economic circumstances, market volatility, and LIC's liquidity situation. Let us look at a few of these elements:

Economic Conditions: Certain economic changes have a significant impact on the interest rates given by the country's banks and financial institutions. People in most developing economies strive to get credit to satisfy their financial demands. In addition, when credit is in great demand, banks may offer higher interest rates to entice new depositors.

Price Rise: Inflation is one of the primary variables influencing term deposit rates, among others. To a significant part, this affects the interest rates that banks and other financial institutions provide.

A Recession: In most situations, a recession will have a negative impact on interest rates. This is the period when banks and financial institutions will begin to decrease the interest rates on most financial goods.

RBI: RBI rules and guidelines are critical in establishing the economy's interest rates.

Calculate LIC FD Interest
Investment Amount
₹25,000.00
Time Period
9 Months
1 Year
2 Years
3 Years
Maturity Amount
LIC
@5.25% p.a
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