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LIC Fixed Deposit Scheme

The LIC fixed deposit scheme is a much sought after fixed deposit scheme in India. LIC or the Life Insurance Company is the oldest and the largest life insurance company in India. These days, the company has a wing called the LIC Housing Finance Limited. This company is a listed company and offers fixed deposits at excellent rates of interest. The LIC fix deposit rates are so competitive that more and more people opt for the LIC fixed deposit scheme when they look to invest their money. Take a look at this article to know more about these excellent FD options from LIC.

What are the LIC fix deposit benefits?

When you open an LIC fixed deposit account, you stand to receive the following benefits:

  • Flexible

The LIC fixed deposit scheme is very flexible. You can start your fixed deposit with investments as low as a few hundred rupees. On the other hand, you can also invest in lakhs, as there is no higher limit on the investment. The LIC fix deposit interest rate is also variable. If you invest for a shorter period of time, you earn lower interests. If however you invest for a longer tenure, you stand to earn a much higher interest too.

  • High rate of interest

The LIC fix deposit interest rate is very high. You can earn between 2% and 6%, depending on the LIC fixed deposit scheme you choose. This makes the FD investment very promising and profitable for you. Choose a good investment FD scheme from LIC and earn high and healthy yields.

  • Very reliable

LIC is an extremely valuable name in India. People associate trust with LIC. This is precisely the reason why LIC proves to be a very reliable provider of fixed deposit schemes in this country. If you wish to start your FD with a provider who is ethical, safe and reliable, LIC will be an excellent option for you.

  • Special benefits for senior citizens

Many senior citizens look for a safe and dependable source of income after they retire. Post-retirement, their regular salary stops. At such times, a high-yielding LIC fixed deposit comes in very handy. LIC offers a higher-than-normal interest rate on the senior citizen fixed deposit schemes. This helps elderly people to manage their money and successfully meet all their financial targets.

The rate is subject to change, but as of now, for the senior citizen, there is an additional interest of 0.25% p.a. for all fixed deposits of INR 20,000 or more till INR 20 CR.

  • Available online

The LIC fixed deposit schemes are easily accessible online. You can quickly and very simply start your fixed deposit account online. The process is very hassle-free and convenient. Apart from starting the fixed deposit online, you can also make withdrawals, renew the scheme and check the status of your fixed deposit at any time by visiting the website or app of LIC. This is a massage benefit you get and it helps to save a lot of your time and effort.

  • Low risk

Every financial expert tells you to have a healthy mix of investments in your financial portfolio. This is precisely why you need a few safe and risk-free fixed deposit schemes, along with the riskier stock and equity investments. The LIC fixed deposit allows you to stay invested in a very low-risk capacity. If you are conservative or you simply want to have a good mix of investments in your portfolio, you can opt for the LIC fixed deposit schemes and meet your financial goals quite easily.

  • Option to withdraw or invest again

As mentioned above, there is a lot of flexibility available with the LIC fixed deposit schemes. As a result, the FD provider gives you the option to invest your maturity amount into another fixed deposit after your existing scheme comes to an end. Alternatively, you can withdraw the entire amount and use it for your own benefit. The options are manifold, making it highly advantageous for you.

LIC HFL Rates of interest:

There are different rates for fixed deposits and for different payout options.

  1. Non-cumulative Option is when the interest accumulated in the fixed deposit is paid out on a monthly/ annual basis.
  2. Cumulative Option is when the interest is accumulated along with the initial deposit and paid out together with on maturity.
  3. There are different rates for fixed deposits upto INR 20 CR and for fixed deposits more than INR 20 CR. Also, there are different rates for corporate fixed deposits.

 

As on November 30, 2021, the LIC HFL rates are of less than INR 20 CR:

Tenure Monthly ROI Yearly ROI
  Non-Cumulative Fixed Deposits Cumulative as well as  Non-Cumulative Fixed Deposits
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%


In LIC HFL, the minimum amount of Fixed Deposit is INR 20,000 and the interest is paid out on the 1st day of every month and the 31st of March under monthly interest payout option and on 31st of March under annual interest payout option. 

These are the top benefits that make the LIC fixed deposits so popular in India. Anyone who is considering starting a fixed deposit account, may very well explore the LIC fixed deposit schemes and make a wise financial decision.

The final word

There are many fixed deposit schemes available from several banks and NBFCs in India. However, when you opt for LIC, you get many benefits. The LIC fixed deposit facilities are manifold and that gives you the perfect combination of high returns, excellent service and digital convenience. Make use of these benefits and meet your financial goals with ease.

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