In an era where financial security is paramount, the Life Insurance Corporation of India (LIC) has introduced an attractive Fixed Deposit (FD) scheme for 2025, promising stable monthly income with minimal risk. This LIC FD plan allows investors to park as little as ₹1 lakh and receive guaranteed payouts directly into their bank accounts, making it ideal for retirees, salaried individuals, and anyone seeking predictable returns amid economic uncertainties.
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Understanding the LIC FD 2025 Scheme
The LIC FD 2025, offered through LIC Housing Finance Limited, is a low-risk investment vehicle backed by the government’s trusted insurance giant. Launched to cater to conservative investors, it emphasizes capital protection, steady interest accrual, and flexible payout options. Unlike volatile market-linked products, this scheme ensures your principal remains intact while generating passive income. With no upper investment limit, it’s scalable for larger sums, but the entry point of ₹1 lakh makes it accessible to middle-class families looking to supplement their earnings.
Key to its appeal is the monthly income feature, where interest is credited regularly without fail. For a ₹1 lakh investment, the scheme delivers approximately ₹6,200 per month at prevailing rates, translating to an effective annual yield that outpaces traditional savings accounts. Senior citizens enjoy an additional 0.25% interest boost, enhancing its suitability for retirement planning.
How the Returns Work: Breaking Down ₹6,200 Monthly
At its core, the LIC FD 2025 operates on a simple interest model with quarterly compounding options, but the standout feature is the monthly payout mode. Assuming an interest rate of around 7.44% per annum—aligned with recent revisions for tenures of 36 to 60 months—the calculation yields the promised ₹6,200 monthly from ₹1 lakh.
To illustrate, here’s a table showing potential monthly income based on deposit amounts and standard rates (general category; seniors add 0.25%):
| Deposit Amount (₹) | Annual Interest Rate (%) | Monthly Income (₹) | Annual Return (₹) |
|---|---|---|---|
| 1,00,000 | 7.44 | 6,200 | 74,400 |
| 2,00,000 | 7.44 | 12,400 | 1,48,800 |
| 5,00,000 | 7.44 | 31,000 | 3,72,000 |
| 10,00,000 | 7.44 | 62,000 | 7,44,000 |
Note: Rates are indicative as of September 2025 and subject to periodic review; actual payouts may vary slightly based on tenure and payout frequency.
Eligibility, Benefits, and Tax Perks
Eligibility is broad, encompassing resident Indians, NRIs (up to 3-year tenure), minors via guardians, HUFs, firms, and trusts. To apply, visit an LIC Housing Finance branch or use their online portal for forms—minimal documents like PAN, Aadhaar, and bank proofs suffice. Benefits include auto-renewal, loans up to 75% of the deposit at low rates, and electronic crediting for hassle-free access.
Tax-wise, 5-year tenures qualify for Section 80C deductions up to ₹1.5 lakh annually, while interest is taxable with TDS applicable if exceeding ₹40,000 (₹50,000 for seniors). Submit Form 15G/H to avoid TDS if eligible.
Why Choose LIC FD 2025 for Your Portfolio?
This scheme stands out for its blend of safety, liquidity, and returns in a high-inflation environment. While early withdrawal incurs a 2% penalty, the guaranteed nature and government backing make it a cornerstone for diversified portfolios. For those eyeing ₹6,200 monthly from ₹1 lakh, it’s not just an investment—it’s financial tranquility. Consult an LIC advisor to tailor it to your goals and secure your future today.
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