LIC New FD Scheme – If you’re a senior citizen looking for a safe way to earn a regular monthly income, LIC’s new Fixed Deposit (FD) scheme might be just what you need. Life Insurance Corporation of India (LIC) has rolled out an exclusive FD plan for individuals aged 60 and above, offering guaranteed returns and fixed monthly interest. It’s a solid option for retirees who prefer financial stability over market-linked risks.
What Makes This Scheme Special
This scheme is designed specifically for Indian senior citizens and offers fixed monthly interest payouts, making it ideal for those who want a dependable source of income post-retirement. Since LIC is backed by the Government of India, the investment comes with a high degree of safety and reliability. Investors can also choose how long they want to stay invested—tenure options range from 1 to 5 years depending on your financial goals.
Features and Benefits in a Nutshell
What stands out about this FD scheme is the guaranteed monthly interest. So instead of waiting for quarterly or annual returns, you get a fixed payout every month, which helps with routine expenses. The interest rates are slightly higher than standard LIC deposits, giving you more bang for your buck. LIC also offers flexibility in choosing the deposit period and amount. Plus, in case of a financial emergency, you can avail a loan against your FD. There’s also a nomination facility, ensuring the smooth transfer of benefits to your chosen nominee.
How Much Can You Earn?
Let’s talk numbers. LIC offers competitive interest rates that beat many traditional bank FDs. For example, if you invest ₹1 lakh for a year, you earn 7.20% annually, which works out to a monthly payout of ₹600 and a total return of ₹1,07,200 at the end of the year. A ₹10 lakh deposit for five years at 7.80% interest gives you ₹6,500 per month and a total return of ₹13.9 lakh. The exact interest might vary a bit based on market conditions, but overall, it’s a strong offering compared to similar products.
Who Can Apply?
To be eligible, you need to be an Indian citizen aged 60 or above. Joint accounts are allowed, but at least one of the account holders should be 60 or older. You’ll need to submit basic KYC documents like a PAN card, Aadhaar, and age proof. While having an LIC policy is not mandatory, it may be preferred at some branches.
Simple Steps to Apply
Applying is a breeze. Just walk into your nearest LIC branch or contact an authorized LIC agent. Carry your ID, address, and age proof, along with bank account details. Fill out the FD application form, mention your nominee, and choose your deposit amount and tenure. You can pay through a cheque or transfer the money directly. Once everything’s in order, LIC will issue a fixed deposit certificate that outlines your investment and interest payout schedule.
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How It Compares with Other FD Options
Compared to other senior citizen schemes, LIC’s FD plan holds up well. For example, SBI offers 7.30% interest, while HDFC gives up to 7.75%. The Senior Citizens Savings Scheme (SCSS) offered by the post office has a higher interest rate at 8.20%, but it pays quarterly and has different rules. LIC’s offering is a nice middle ground—decent returns, fixed monthly income, and the trust factor of a government-backed institution.
Keep These Documents Ready
Before you head to the branch, make sure you’ve got your PAN and Aadhaar cards, a passport-sized photo, age proof (like PAN or voter ID), and your bank details. If you have an LIC policy, carry that too—it might speed up the process.
Why LIC’s FD is a Good Pick for Retirees
This FD scheme ticks all the right boxes for senior citizens: steady returns, no market volatility, and the peace of mind that comes with a trusted brand. The monthly payouts can make budgeting easier, and the process is straightforward. For those who want a no-fuss investment with regular income, this is definitely worth considering.
Disclaimer
The details mentioned above are for informational purposes only. Interest rates, terms, and conditions may vary depending on LIC’s current policies and prevailing market rates. It is advisable to consult an LIC advisor or visit the official LIC branch to get the latest and most accurate information before making any investment.
