LIC FD Interest Rates

About LIC FD 

LIC Housing Finance Limited (LIC HFL), established in 1989 and backed by LIC of India, is one of India’s most trusted housing finance companies. It has been listed on both NSE and BSE since going public in 1994. The company is registered with the National Housing Bank and is known for offering a wide range of financial products tailored to different customer needs, including its popular Fixed Deposit scheme under the 'Sanchay' plan.

LIC Housing Finance Fixed Deposits are designed to offer safety, stable returns, and flexibility. The FD tenure ranges from 12 to 60 months. The maximum interest rate available is 6.90% per annum for regular investors, while senior citizens can earn up to 7.15% per annum, offering them a slightly better return.

With competitive interest rates and a solid reputation, LIC HFL’s FDs can be suitable for investors seeking reliable income. In addition to housing finance, LIC HFL also provides loans for personal, professional, or business use, including loans against property and finance for builders and professionals across India.

LIC FD Interest Rates (Deposits Upto ₹3 Crore)

Note: The data is as of June 19, 2025

Features and Benefits of LIC Fixed Deposit 

• Minimum deposit for the monthly interest option is ₹2 lakh.
• Minimum deposit for the yearly interest option is ₹10,000.
• Additional deposits can be made in multiples of ₹10,000 (monthly option) and ₹1,000 (yearly option).
• Senior citizens receive an extra interest rate of 0.25% p.a. for deposits ranging from ₹10,000 to below ₹20 crore.
• FDs come with an auto-renewal feature upon maturity, if not instructed otherwise.
• Partial withdrawals of the fixed deposit are allowed, offering liquidity when needed.
• Loan facility is available against the fixed deposit, providing financial flexibility.

Types of LIC FD Schemes 

LIC Housing Finance FD - SANCHAY

• Offers a secure investment option with attractive returns under the LIC HFL brand.
• Available to resident and non-resident individuals, HUFs, partnerships, co-operative societies, trusts, and associations.
• Minimum deposit for the monthly payout option is ₹2,00,000 and for the yearly option, it is ₹10,000.
• Senior citizens earn an extra 0.25% interest per annum on deposits from ₹10,000 to below ₹20 crore.

Term-wise LIC Fixed Deposit Rates

Short-Term Fixed Deposits

These FDs range between 1 day to 1 year, offering interest rates of 6.70% for regular customers and 6.95% for senior citizens. This type of FD can be suitable for short-term savings and quick liquidity.

Medium-Term Fixed Deposits

These FDs range from 1 year to less than 5 years, with interest rates between 6.70% to 6.90% for regular customers and 6.95% to 7.15% for senior citizens. This can be a suitable option for planned expenses over the medium term.

How to Invest in an LIC Fixed Deposit?

To open a LIC Housing Finance Fixed Deposit account offline, visit the nearest LIC Housing branch. Complete the FD application form and submit it along with the required documents and deposit amount. Once processed, LIC Housing will issue a fixed deposit receipt as confirmation.

Eligibility for Opening an LIC FD Account

LIC allows various individuals and entities to open a fixed deposit account, provided they meet the eligibility norms. The following categories are eligible:

• Resident and Non-Resident Individuals
• Hindu Undivided Family (HUFs)
• Partnership Firms
• Co-Operative Societies
• Association of Persons and Trusts

Documents Required to Open LIC FD Account

• Duly filled LIC FD application form
• Two recent passport-sized photographs of the applicant
• PAN card as mandatory identity verification
• Valid ID proof such as Aadhaar card, passport, driving licence, or PAN
• Acceptable address proof includes Aadhaar card or recent utility bills like electricity or telephone bills
• Age verification documents like birth certificate, school certificate, discharge certificate, or PAN card

Tax on LIC Fixed Deposit

Only the LIC Tax Saving FD qualifies for tax deductions of up to ₹1,50,000 annually under Section 80C of the Income Tax Act. Other LIC FD options do not offer this benefit. The interest earned on LIC FDs is fully taxable as per the depositor’s income tax slab.

TDS is applicable at 10% if the annual interest exceeds ₹40,000 for regular investors and ₹50,000 for senior citizens. However, if PAN details are not submitted, a higher TDS rate of 20% will apply.

Premature Closure of LIC Fixed Deposit

Premature withdrawal of LIC Housing Finance Fixed Deposits is allowed solely at the discretion of the company and is not a guaranteed right. No interest is paid if the FD is closed within 3 months. Withdrawals between 3 to 6 months earn 3% p.a. for individuals only.

For withdrawals after 6 months, interest is paid 1–2% lower than applicable rates, depending on the tenure completed before withdrawal.