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LIC FD Plan – Everything You Need to Know

About LIC and LIC FD Plan

Life Insurance Corporation (LIC) provides several fixed deposit schemes to its customers. It has been rated FAAA/Stable by the global analytical company, CRISIL. The minimum amount required to open a LIC fixed deposit is INR 10,000.

LIC Housing Finance began to accept fixed deposits under the Sanchay scheme in May 2007. Since then, millions of customers have opened up fixed deposit accounts with LIC and have also used the LIC FD calculator.

LIC has also made it very easy for customers to open up fixed deposit accounts. Customers who wish to open a fixed deposit should start by downloading the application form from the official LIC website. This form can also be collected from the authorized back office of LIC.

After filling up the application form, it should be submitted with the identity and address proof at the office of the company. A fixed deposit receipt will also be dispatched within a period of three weeks after submitting the documents.

Features of LIC FD Plan

The LIC FD scheme comes with some pretty exciting features. Do you want to know what these features are? If yes, then go through the list given below.

  • The minimum amount of investment starts at INR 10,000
  • Entities eligible to make a deposit include resident individuals, HUF, co-operative societies, private limited companies, an association of people, Limited, and NRI
  • Deposits are also accepted in joint names. These should not be greater in number than three
  • Compound interest is applicable on an annual basis
  • Both cumulative and non-cumulative options are available
  • Deposits have a flexible tenure of 1 year, 18 months, 2 years, 3 years, and 5 years. For NRIs, the maximum term deposit period is 3 years

 

The interest rates of these plans can be calculated by using the LIC FD calculator.

LIC FD Plan

We will first look at the LIC public deposit scheme for values less than INR 20 crore.

Term Interest Rate for Monthly Payout Options Interest Rate for Yearly Payout Options
1 year 5.10% 5.25%
18 months 5.35% 5.50%
2 years 5.50% 5.65%
3 years 5.60% 5.75%
5 years 5.60% 5.75%

The interest rates for the LIC public deposit scheme for amounts of INR 20 crore and above are given below.

Term Interest Rate for Monthly Payout Option Interest Rate for Yearly Payout Option
1 year 4.50% 4.60%
18 months 4.75% 4.85%
2 years 4.90% 5.00%
3 years 5.00% 5.10%
5 years 5.00% 5.10%

The interest rates for deposits made under INR 20 crore for cumulative and non-cumulative deposits for LIC corporate deposit scheme are given below.

Term Interest Rate for Monthly Payout for Non-Cumulative Deposit
1 year 5.25%
18 months 5.50%
2 years 5.65%
3 years 5.75%
5 years 5.75%

Benefits of LIC FD Plan and LIC FD Calculator

A few benefits of using the LIC FD calculator and investing in a LIC FD plan are:

  • The scheme is completely safe and stable
  • The interest rates are very competitive
  • There is a wide range of choices for tenure and interest payout options
  • The LIC FD calculator gives the exact interest earned amount

 

Types of LIC FD Plans

The different types of LIC FD plans are:

  • LIC HFC public deposit scheme for an amount less than INR 20 crore
  • LIC HF public deposit scheme for the amount of INR 20 crore and above
  • LIC HF corporate deposit scheme for the amount of INR 20 crore for cumulative and non-cumulative deposits

 

Eligibility of LIC FD Plan

To be eligible for opening a LIC FD plan, one needs to fulfill the eligibility criteria given below.

  • Individual
  • Joint account minor with a guardian
  • Partnership
  • Company
  • NRIs
  • Association
  • Institute

 

How to Use LIC FD Calculator to Get LIC FD Plan Interest Rates

If you want to use the LIC FD calculator to learn the exact interest amount earned, then your task couldn’t be made simpler. All you need to do to use the LIC calculator is enter the details like the LIC FD plan chosen, tenure, and anything else that the calculator might need.

After entering all the correct details, simply click on calculate or enter to get the exact interest earned amount through the FD. You can also use the calculator to decide the manner in which you think you would get the best returns from your investment.

Factors Affecting LIC FD Plan

When it comes to the LIC FD plans, then there are several factors that can affect the interest rates. Do you want to know what these factors are? If yes, then go through the list of these factors given below.

  • Tenure: The interest on the fixed deposits will vary depending on the tenure chosen at the time of starting the investment. Many banks also offer high FD interest rates for special durations.
  • Total Amount Invested: The total amount invested in a fixed deposit will also affect the interest rate for LIC FD plans. Usually, the higher the amount is invested, the more interest will be earned by the depositor or the investor.
  • Renewals: Policies with auto-renewal facilities have a higher interest rate associated with them in comparison to other FD policies. The auto-renewal facility also makes it easier for the depositor to maintain the FD scheme.
  • Age: The age of the investor is an important factor in determining the rate of interest. Senior citizens also get a higher interest rate for FD schemes in comparison to average investors.

 

FAQs:

What is the highest FD interest rate for LIC FD schemes?

The highest FD interest rate for the general public is 5.6% and for senior citizens, the FD interest rate is 5.75%.

How many years will it take to double the FD amount for the LIC FD plan?

The exact amount that you will get from investing in an FD policy will depend on several factors, including tenure of the scheme, interest rate, and economic conditions.

Does LIC provide a cumulative option for investment?

Yes, LIC does provide a cumulative option for investment.

Is LIC a government organization?

LIC is an Indian organization that is registered with competent authorities.

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