LIC New FD Scheme – If you’re a senior citizen or helping someone in your family plan their post-retirement finances, LIC has just introduced something worth looking into. LIC’s new fixed deposit (FD)-style scheme is specially designed for people aged 60 and above. What makes it stand out is that it doesn’t just help you save—it guarantees a fixed monthly income, so you can cover regular expenses like medicine, groceries, or electricity without worrying about market ups and downs.
So, What’s This LIC FD Scheme All About?
This is LIC’s version of a fixed deposit—but better suited for retirees. Unlike traditional FDs where you either get a lump sum at the end or quarterly payouts, this one is all about monthly stability. You invest a lump sum, and starting from the second month, LIC sends you a guaranteed monthly payment. The plan is flexible too—you can choose how much you want to deposit (within the allowed limits), and the payout is based on that. It’s reliable, simple, and especially helpful for those living on a fixed post-retirement budget.
Who Can Apply for This LIC Senior FD Scheme?
The scheme is open only to Indian citizens aged 60 or above. There’s no upper age limit either, so as long as you’re medically fit (if required), you’re eligible. You’ll need basic KYC documents like Aadhaar, PAN, and proof of address to get started. It’s LIC’s way of making sure retirees have a secure and regular income without needing to manage risky investments.
Why Retirees Are Loving This FD-Like Plan
There are quite a few reasons this scheme is gaining popularity. First, it provides steady income every month—something retirees need the most. Plus, it comes with higher interest rates than regular FDs offered to the general public. It also promotes financial independence, so seniors don’t have to rely on anyone for monthly expenses. What’s more, LIC allows loan options against the deposit after a few months, and you can even opt for premature withdrawal if an emergency pops up (though small penalties apply).
What Kind of Monthly Income Can You Expect?
Your monthly payout will depend on how much you invest. For example, if you deposit ₹1,00,000, you’ll get around ₹625 every month. If you go higher—like ₹10 lakh—you’ll receive ₹6,250 monthly. And if you invest ₹15 lakh, your monthly income could be around ₹9,375. The tenure is flexible too—you can choose anywhere between 5 to 10 years based on what suits you. The interest rate is around 7.5%, but it may vary slightly depending on LIC’s latest policies.
How to Apply for This LIC FD Scheme
It’s super easy to apply. You can walk into the nearest LIC branch or simply visit their official website. Just fill out the senior citizen deposit form, attach your documents (Aadhaar, PAN, age proof), and choose how much you want to deposit. You can pay through cheque, demand draft, or even online. Once approved, you’ll get a confirmation policy document and a monthly income certificate. The first payout starts a month after your deposit is confirmed.
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Don’t Forget These Documents
To apply, make sure you have your proof of age, like Aadhaar or Voter ID, your identity proof (PAN or driving license), and address proof like a utility bill. Also, keep your bank account details ready so LIC knows where to send your monthly income. And yes, you’ll need a couple of recent passport-size photos too.
A Few Important Terms You Should Know
The monthly payout starts one month after your deposit is made. If you need to withdraw early, you can do that after three months—but there might be a small penalty. Interest rates can also change at LIC’s discretion, so it’s smart to apply while the current rate is still attractive. Also, if your interest income exceeds the government’s limit, TDS (tax deducted at source) may apply. The loan facility is available after six months of investment.
How Does It Compare to Bank FDs?
Compared to regular bank FDs, LIC’s plan scores better in a few key areas. Most bank FDs offer limited options for monthly payouts, whereas LIC offers that by default. The interest rates are slightly higher, and the safety factor is top-notch, since it’s backed by India’s most trusted life insurance company. Both options offer loans and premature withdrawals, but LIC brings better peace of mind when it comes to financial reliability.
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Why LIC’s Plan Might Be Perfect for Retirees
Let’s be honest—nobody wants to gamble with their life savings after retirement. This plan from LIC is a great pick for seniors who want zero market risk, guaranteed returns, and a consistent monthly income to manage day-to-day expenses. It’s also super secure and comes from a brand that’s been around for decades. And if something ever happens, LIC’s claim settlement process is simple for family members or nominees to handle.
In short, LIC’s senior citizen FD scheme is a solid choice for anyone looking for financial comfort in retirement. It helps you earn more than traditional FDs, stay financially independent, and enjoy peace of mind in your golden years.
Disclaimer: This article is meant to provide general information. Always check LIC’s official guidelines and speak to a financial advisor before investing.
