When it comes to money, everyone wants two things – safety and steady growth. Nobody likes to stay awake at night worrying about their savings. That is why Fixed Deposits (FDs) are still one of the most popular choices in India. They do not make you rich quickly, but they give you peace of mind.
Banks have been offering fixed deposits for many years. Millions of people trust them. But many do not know that the Life Insurance Corporation of India (LIC) also offers fixed deposits. LIC is already a famous name in insurance. Now, through LIC Housing Finance Limited (LIC HFL), it also helps people grow their money safely.
Why Choose LIC Fixed Deposit?
LIC is the largest life insurance company in India. It is owned by the Government of India. This makes it very safe and reliable. People already trust LIC for life insurance and health plans, so its fixed deposits also come with the same trust.
LIC FDs are managed by LIC Housing Finance Limited. Just like a bank FD, you put a fixed amount for a chosen time. LIC pays you interest either monthly or yearly. The money you earn depends on how much you invest, the interest rate, and the deposit period.
How Much Can You Earn from LIC FD?
Here is an example. If you invest ₹1,00,000, the interest rate can go up to 6.45% per year. That means you may get around ₹500 to ₹650 per month.
If you invest ₹10,00,000 at a higher interest rate of 7.8%, your monthly income could be around ₹6,500. In one year, that is around ₹65,000.
For many people, this monthly income works like a small salary. It helps pay bills, manage household costs, or save for future needs.
Example of Monthly Income from LIC FD
| Investment Amount | Interest Rate | Monthly Income (Approx) |
| ₹1,00,000 | 6.45% | ₹500 – ₹650 |
| ₹10,00,000 | 7.8% | ₹6,500 |
Key Features of LIC FD
- Interest rates up to 6.45% for regular investors
- Senior citizens get an extra 0.25%
- Some special schemes give rates above 7%
- Monthly interest payout option
- Tenure from 1 year to 5 years or more
- Minimum deposit – ₹1,00,000, no upper limit
- 5-year FD qualifies for tax benefits under Section 80C
- Avoid TDS if annual interest is below ₹40,000 by submitting Form 15G/15H
Extra Benefits of LIC FD
LIC allows you to take a loan against your FD after 6 months. You can also withdraw early if needed. This makes it flexible.
For retirees, it works like a pension plan. They get a steady income every month. Young professionals also use it as a safe backup along with mutual funds or stocks.
Why It Matters Today
Many people are now attracted to risky options like stocks or cryptocurrency. But these can give big losses too. FDs are still safe. LIC adds more trust because it has been handling public money for decades.
If you want guaranteed returns without risk, this is a good choice. You can use it for short-term savings, retirement planning, or safe parking of extra money.
Final Words
LIC Fixed Deposit is a mix of safety, steady income, tax savings, and trust. With only ₹1,00,000, you can start earning every month. It is not for people who want fast profits. It is for people who want stable growth and no stress.
If you have extra money sitting idle, think about this FD scheme. Safe investments are also important for a strong future.