LIC FD Scheme 2025 : Earn Safe Monthly Income from Rs 1 Lakh Investment
When it comes to safe and reliable investment options in India, the Life Insurance Corporation of India (LIC) remains one of the most trusted names. Apart from life insurance plans, LIC also provides attractive Fixed Deposit (FD) options through its subsidiary — LIC Housing Finance Limited (LIC HFL).
The LIC HFL Sanchay Deposit Scheme is one of the most secure FD schemes in the country, offering steady returns and flexible payout options. If you are looking to earn a monthly income from a ₹1 lakh investment, here’s everything you need to know about the LIC FD Scheme 2025, including interest rates, benefits, and income potential.
Understanding LIC FD Scheme (Sanchay Deposit Scheme)
The LIC HFL Sanchay Deposit Scheme functions like any other fixed deposit offered by banks. You can deposit a lump sum amount for a fixed tenure and earn guaranteed interest over time. The returns can be received monthly, quarterly, annually, or at maturity depending on your chosen plan.
It’s an ideal investment option for:
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Retired individuals seeking a regular income stream
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Salaried employees looking for secure short-term returns
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Homemakers or conservative investors who prefer zero market risk
The biggest advantage of LIC FD is its safety and reliability, backed by India’s most trusted financial institution.
LIC FD Interest Rates 2025
As per the latest update for 2025, LIC Housing Finance offers the following interest rates on fixed deposits:
| Tenure | Regular Citizens | Senior Citizens |
|---|---|---|
| 1 Year | 6.70% | 6.95% |
| 2 Years | 6.80% | 7.05% |
| 3 Years | 6.85% | 7.10% |
| 5 Years | 6.90% | 7.15% |
You can choose between two payout options:
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Cumulative Option: Interest is compounded and paid at maturity.
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Non-Cumulative Option: Interest is paid out monthly, quarterly, or annually as per your choice.
This flexibility makes LIC FD a preferred choice for people who want consistent income or long-term capital growth.
Monthly Income from ₹1 Lakh Deposit
If you invest ₹1 lakh in LIC HFL FD at a 6.9% annual interest rate, here’s what your monthly income will look like:
₹1,00,000 × 6.9% ÷ 12 = ₹575 per month
For senior citizens, at a higher 7.15% interest rate, the monthly income would be approximately ₹595.
So, for a ₹1 lakh investment, the monthly return will be between ₹550–₹600, depending on the chosen tenure and age group.
If someone claims that you can earn ₹6,000 or more monthly from ₹1 lakh — that’s unrealistic. At 7% interest, to earn ₹6,500 monthly, you’d need to invest around ₹11 lakh.
How Much to Invest for Higher Monthly Income
Here’s an approximate guide to help you plan your investment:
| Desired Monthly Income | Approx. Investment Needed (at 7% interest) |
|---|---|
| ₹1,000 | ₹1.7 lakh |
| ₹3,000 | ₹5.1 lakh |
| ₹5,000 | ₹8.5 lakh |
| ₹6,500 | ₹11 lakh |
| ₹10,000 | ₹17 lakh |
This table helps investors estimate how much capital they need to earn a specific monthly income safely.
Key Benefits of LIC FD Scheme
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Highest Safety Rating: LIC HFL FD holds a CRISIL AAA/Stable rating, indicating the highest level of financial safety.
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Flexible Tenure: Investors can choose terms from 1 to 5 years.
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Regular Income Option: Choose monthly, quarterly, or annual interest payouts.
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Extra Interest for Seniors: Senior citizens receive 0.25% additional interest.
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Loan Facility: Borrow up to 75% of your FD amount in emergencies.
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Nomination & Auto-Renewal: Available for smooth transfer and automatic renewal at maturity.
Taxation and Withdrawal Rules
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TDS (Tax Deducted at Source) applies if annual interest exceeds ₹40,000 (₹50,000 for senior citizens).
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Premature withdrawal is allowed after 3 months, but with slightly reduced interest.
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Investors should always check the latest rates and terms on the official LIC HFL website before investing.
Final Thoughts
The LIC FD Scheme 2025 by LIC Housing Finance is one of the safest and most dependable investment options in India. With assured returns, flexible tenures, and guaranteed safety, it’s an excellent choice for retirees, salaried individuals, and middle-class families seeking stable income By investing ₹1 lakh, you can earn around ₹550–₹600 per month, depending on your age and tenure. For those who want higher monthly returns, increasing your deposit amount is the key.