LIC FD Scheme 2025: Earn Safe Monthly Income from ₹1 Lakh Deposit
When it comes to secure and trustworthy investment options in India, the Life Insurance Corporation of India (LIC) is a name that commands respect and confidence. While LIC is widely known for its insurance and pension products, many people are unaware that it also offers excellent Fixed Deposit (FD) investment opportunities through its subsidiary, LIC Housing Finance Limited (LIC HFL).
The LIC HFL Fixed Deposit Scheme, also known as the Sanchay Deposit Scheme, is one of the most reliable savings plans for individuals looking for guaranteed returns, flexible tenure, and complete safety of their money. Whether you are a salaried individual, a retiree, or a homemaker, this scheme ensures steady income without any risk. Let’s explore all the details, including how much you can earn monthly if you invest ₹1 lakh.
What Is LIC FD Scheme?
The LIC HFL Sanchay Deposit Scheme works like any regular fixed deposit offered by banks. You invest a lump sum amount for a fixed period, and LIC HFL pays you interest at regular intervals—monthly, quarterly, or annually—depending on your preference.
The key attraction of this scheme is safety and stability. LIC HFL is one of India’s most trusted financial institutions, and its fixed deposits come with the highest safety ratings, ensuring your hard-earned money is completely secure.
Current LIC FD Interest Rates (2025)
As of 2025, LIC HFL offers the following interest rates on its 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% |
The scheme provides two options:
-
Cumulative Option – Interest is compounded and paid at maturity.
-
Non-Cumulative Option – Interest is paid monthly, quarterly, or annually, based on your selection.
For people who want monthly income, the non-cumulative option is ideal.
Monthly Income from ₹1 Lakh Deposit
Let’s calculate how much you can earn every month by investing ₹1 lakh in LIC FD:
At an average interest rate of 6.9% per annum, the monthly income is:
₹1,00,000 × 6.9% ÷ 12 = ₹575 per month.
If you are a senior citizen (earning 7.15%), you will get around ₹595 per month.
Therefore, with a ₹1 lakh deposit, your monthly earnings will range between ₹550 and ₹600.
Many people believe that a ₹1 lakh FD can give ₹6,500 per month—but that’s not possible. To earn ₹6,500 monthly, one would need to invest roughly ₹11 lakh at a 7% interest rate.
How Much Should You Invest for ₹6,500 Monthly Income?
To help you plan your savings goal, here’s a quick estimate of required investment:
| Desired Monthly Income | Approximate Deposit 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 shows that the LIC FD Scheme is ideal for steady income, but higher monthly returns require higher deposits.
Key Benefits of LIC FD Scheme
-
Highest Safety Rating:
LIC HFL FDs are rated “AAA/Stable” by CRISIL, meaning the risk of default is almost zero. -
Assured Returns:
The interest rate remains fixed throughout the tenure—your earnings are guaranteed. -
Flexible Tenure:
Choose between 1 to 5 years as per your financial needs. -
Extra Interest for Senior Citizens:
Senior citizens get 0.25% extra interest, offering better monthly income. -
Regular Payouts:
Option to receive interest monthly, quarterly, or annually, making it ideal for pensioners and homemakers. -
Loan Facility:
You can avail a loan up to 75% of your deposit value in case of emergencies without breaking your FD. -
Nomination & Auto-Renewal:
Easy nomination facility and option for auto-renewal after maturity.
Taxation and Withdrawal Rules
-
TDS (Tax Deducted at Source):
Applicable if total annual interest exceeds ₹40,000 (₹50,000 for senior citizens). -
Premature Withdrawal:
Allowed after 3 months, but the interest rate may be slightly reduced. -
Tax Saving:
Interest earned is taxable as per your income tax slab.
Why Choose LIC FD Over Others?
While many banks and NBFCs offer fixed deposits, LIC HFL stands out because of its reputation, consistency, and government-backed trust. Investors who prefer risk-free and steady returns find this scheme ideal for parking their savings.
Additionally, the monthly payout feature helps retired individuals manage household expenses efficiently without worrying about market fluctuations.
Final Thoughts
The LIC FD Scheme 2025 is a perfect blend of security, reliability, and steady income. With an investment of ₹1 lakh, you can expect monthly earnings of around ₹550–₹600, depending on your tenure and age.
While it may not offer sky-high returns, the peace of mind and guaranteed income it provides make it an excellent choice for risk-averse investors, retirees, and homemakers.
In today’s uncertain market environment, the LIC Fixed Deposit remains one of the safest ways to grow your savings while enjoying regular income every month — truly a dependable option for financial stability.