LIC Fixed Deposit Calculator

LIC Housing Finance Ltd. went public in 1994 after being promoted by LIC of India. Currently, the company is registered under the National Housing Bank and has been offering fixed deposits by the name Sanchay Deposit Scheme since May 2007. Those willing to earn consistent returns of up to 7.75% per annum can explore the details of this scheme.

For more profitable investment opportunities, you may consider downloading the Stable Money app. Our platform features tools like the LIC fixed deposit calculator to help you accurately check maturity amounts and adjust your decisions accordingly.

How Does the LIC FD Calculator Work?

As an investor, when determining the maturity amount at the beginning of a fixed deposit tenure, you can utilise the LIC FD plan calculator in the following manner:

Step 1: Specify the investment amount or principal that you wish to put in the fixed deposit account.

Step 2: Next, specify the desired investment tenure. You can manually enter the months and years or use the provided slider. While using the LIC fixed deposit calculator, you can select tenures ranging from 1 to 5 years.

Step 3: Mention the interest rate as applicable for your chosen principal and tenure.

Step 4: Select the frequency of compounding by using the dropdown option. It is a crucial feature signifying the number of times your investment will be compounded in a year and thus your overall returns depend on this. So, you should select the option carefully.

Once you have completed these steps, the LIC fixed deposit scheme calculator automatically generates the potential returns. You can see the following figures:

Total Investment
FD Returns
Total Returns

By using this data from Stable Money, you can decide whether you need to adjust your investment amount or tenure to achieve your goal within the desired timeframe.

Formula to Calculate LIC FD Interest

Besides using the LIC FD interest rate calculator, you can also manually figure out the interest outcomes using the following formulas:

Simple Interest on Fixed Deposit: Simple interest on a fixed deposit account balance is what you earn over a set time at a fixed rate of return. Additionally, the principal upon which interest is computed remains constant throughout the term.

Simple interest = (P*R*T) / 100

Here, P is the principal invested, R specifies the rate of return and T denotes the tenure of the FD respectively.

Example

Suppose XYZ invests ₹50,000 at an interest of 7.75% per annum in a 3-year fixed deposit via Stable Money. In this case, the simple interest is calculated as follows:

Simple interest = (P*R*T) / 100

= ₹(50,000*7.75*3) / 100

= ₹11,625

Consequently, at the end of the term, the maturity sum will be ₹(50,000 + 11,625), i.e., ₹61,625.

Compound Interest on Fixed Deposit: The FD calculator of LIC Housing Finance Ltd implements the compound interest formula for cumulative fixed deposit schemes.

In a cumulative LIC FD scheme, you get both your interest and the initial principal directly upon maturity. Here’s the formula to calculate compound interest returns:

Compound Interest = P (1+r/n) ^ (n * t) - P

In this formula, P = Initially invested amount

r = Interest rate (in decimals)

n = frequency of compounding in a single financial year

t = duration of the investment (in years)

Example

Suppose ABC invests ₹75,000 in an LIC Housing Finance fixed deposit for 5 years at an annual interest rate of 7.75%. In this case, his investment will compound annually and the total interest amount at maturity will be:

Maturity Amount = P (1+r/n) ^ (n * t) - P

= ₹75,000 (1 + 0.0775/1)^(1*5)

= ₹1,08,930

Eventually, he will receive a total maturity amount of ₹1,08,930 after five years.

Manually performing this compound interest calculation can be challenging, particularly if you are new to the concept of compound interest. Also, there can be unwanted errors. So, you may sign up on the Stable Money platform and use the online LIC fixed deposit calculator for hassle-free calculations and easy comparisons.