LIC Housing Finance FD interest rates currently range from 6.70% to 7.15% p.a., making them a suitable option for investors looking for stable and predictable returns. Backed by a AAA credit rating from CRISIL, LIC fixed deposits Scheme offer flexible tenures and competitive interest rates for both regular and senior citizen investors.

Term Wise LIC FD Interest Rates 

LIC Housing Finance offers fixed deposits across multiple tenures, allowing investors to choose an option based on their financial goals and liquidity needs. Here’s a tenure-wise breakdown of LIC FD interest rates along with estimated returns:

• Short-Term FD: LIC HFL currently offers up to 6.70% p.a. for a 1-year FD tenure. For example, if an investor deposits ₹1 lakh for 1 year, the estimated interest earned would be around ₹6,700, taking the maturity amount to approximately ₹1,06,700.
• Medium-Term FD: For medium-term deposits ranging between 2 and 3 years, LIC HFL offers interest rates between 6.75% and 6.85% p.a. If an individual invests ₹2 lakh for 3 years at 6.85% p.a., the estimated maturity amount would be approximately ₹2,43,800, with interest earnings of around ₹43,800.
• Long-Term FD: LIC Housing Finance offers up to 6.90% p.a. on 5-year fixed deposits. For instance, if an investor deposits ₹3 lakh for 5 years at 6.90% p.a., the estimated maturity amount would be around ₹4,18,700, generating returns of nearly ₹1,18,700 over the investment period.

Benefits of LIC Fixed Deposit Rates

LIC Housing Finance Fixed Deposits offer several benefits for investors looking for stable and low-risk returns. Some of the key benefits include:

• Stable Returns: LIC FDs provide fixed and predictable returns, making them suitable for conservative investors seeking steady income.
• Competitive Interest Rates: LIC Housing Finance offers FD interest rates ranging from 6.70% to 7.15% p.a., depending on the tenure and investor category.
• High Safety and Reliability: LIC Housing Finance Fixed Deposits are rated AAA by CRISIL, reflecting a high degree of safety and timely repayment capability.
• Flexible Investment Tenures: Investors can choose FD tenures based on their short-term, medium-term, or long-term financial goals.
• Senior Citizen Benefits: Senior citizens receive higher interest rates compared to regular investors, helping them earn better returns on savings.

Eligibility to Open LIC Fixed Deposit

Investors meeting the eligibility criteria can apply for an LIC FD scheme and earn fixed returns based on the selected tenure.

• Resident Indian individuals
• Non-Resident Indians (NRIs) with NRE/NRO accounts
• Senior citizens
• Hindu Undivided Families (HUFs)
• Partnership firms
• Limited companies
• Co-operative societies and trusts

Documents Required to Open LIC Fixed Deposit

Investors need to submit basic KYC documents while booking an LIC Housing Finance Fixed Deposit. The commonly required documents include:

• PAN Card, Aadhaar Card, Passport, or any valid identity proof
• Address proof such as Aadhaar Card, Passport, utility bill, or driving licence
• Completed KYC form and supporting documents
• Passport-size photographs (if required)

Types of LIC FD Schemes

Sanchay Public Deposit Scheme

The LIC Housing Finance Sanchay Public Deposit Scheme is designed for individual and non-individual investors looking for secure fixed deposit investments. The scheme is open to resident individuals, NRIs, HUFs, partnership firms, co-operative societies, associations of persons, and trusts. The minimum deposit amount starts from ₹2 lakh for monthly income plans and ₹10 lakh for annual income plans.

Sanchay Corporate Deposit Scheme

The LIC Housing Finance Sanchay Corporate Deposit Scheme is available for corporates and institutional investors. Public limited companies, private limited companies, statutory boards, local authorities, banks, financial institutions, and corporations can invest under this scheme to earn fixed and stable returns over selected tenures.

How to Open LIC Fixed Deposit?

Investors can apply for the LIC FD scheme online through the official LIC Housing Finance website. These are the steps you should follow:

• Go to the official website of LIC HFL or click here.
• If you are an existing user, login using your PAN Number, and captcha verification.
• Click on ‘Generate OTP’ 
• Complete the online KYC verification.
• Now complete the transfer of funds 
• Digitally sign the application with Aadhaar credentials and submit your application.

Tax on LIC Fixed Deposit Interest

TDS applies to LIC FD interest rates as per the norms of the Income Tax Act, of 1961. As per the rules, if your interest earnings exceed ₹50,000 for a financial year then a 10% TDS will be deducted from the accrued interest. 

For senior citizens, the upper limit for taxable FD returns is ₹1,00,000 in a financial year. You can claim tax exemption by submitting 15G or 15H (for senior citizens) if your annual income falls outside the tax brackets.

Premature Withdrawal of LIC Fixed Deposit

A premature withdrawal of LIC FD requires prior authorisation from the company. The beneficiaries are denied any returns if they withdraw under 3 months of the agreed-upon lock-in period. 

If someone withdraws their corpus after 3 months but within 6 months, then they are paid interest at 3% per annum. However, this rule is applicable only to individuals and not other categories of fixed deposit holders. 

Depositors who withdraw their funds after 6 months but before the end of the agreed term will receive a 1% lower interest than the originally agreed-upon percentage. Finally, in cases where the interest rate is not prescribed for a particular period, the beneficiary receives 2% less than the lowest possible interest rate offered by LIC HFL for the actual period of holding the account.

LIC Overdraft Against Fixed Deposits 

You can apply for an overdraft against your fixed deposit with LIC. However, there are certain conditions that you need to meet. 

• You can apply for an overdraft facility after a minimum period of 3 months from the date of deposit.
• Only up to 75% of the deposit amount can be given as an advance.
• You will be charged an interest rate of 2% higher than deposit rate of underlying FDR

Compare LIC HFL FD Interest Rates with Other Banks

The table below compares LIC Housing Finance FD interest rates with leading public and private sector banks across different tenures.

LIC FD Calculator

Calculate returns on your LIC fixed deposit using the LIC FD Calculator below:

Why Should You Choose Stable Money to Book LIC Fixed Deposit?

Stable Money is completely secure for investors who aim to get the highest possible FD rates across varying tenures. With us, you can explore FD opportunities from multiple partner banks and NBFCs which facilitates easier comparisons and seamless deposits. 

However, please note that we do not list LIC FDs on our platform. Alternatively, you can invest in a fixed deposit through other banks to gain up to 8.15% interest per annum.

Conclusion

LIC Housing Finance FDs offer stable returns, flexible tenures, and strong safety backed by AAA ratings. Before investing, compare LIC FD rates with banks and NBFCs, assess liquidity needs, and calculate expected returns using an FD calculator.