LIC FD Scheme : The LIC Fixed Deposit (FD) scheme has become a major topic of discussion among Indian investors looking for safe and high-return investment options. Life Insurance Corporation of India (LIC), the country’s largest insurance company, is known for its insurance and pension products, but it also offers attractive fixed deposit schemes through LIC Housing Finance. In 2025, the LIC Fixed Deposit scheme has garnered significant attention due to its competitive interest rates and excellent maturity benefits. This scheme is particularly appealing to investors who seek guaranteed returns without worrying about market risks.
Under the latest interest rate structure, the LIC FD scheme offers returns of up to 7.75% per annum for general investors and up to 8.50% for senior citizens. This makes the scheme one of the best FD options currently available in the market. Notably, senior citizens can receive a maturity value of ₹1,42,500 on an investment of ₹1,00,000 over a 5-year period. Many banks are offering lower interest rates in comparison, leading depositors to increasingly rely on LIC for stable returns. This article provides all the necessary details, including interest rates, maturity amounts, tenure options, and a comparison with bank FDs.
Key features of the high-return LIC FD scheme
The LIC FD scheme is unique because it offers returns that rival those of major small finance banks, while also providing the trust and stability associated with LIC. The scheme’s most attractive feature is the 7.75% annual interest rate offered to retail investors on long-term deposits. This rate ensures that savers earn significantly more than they would with many commercial and rural banks. LIC’s fixed deposits are designed for those who prefer secure investments and guaranteed returns, making them ideal for salaried individuals, housewives, pensioners, and cautious investors.
Senior citizens receive even more benefits, including the highest FD rate of 8.50%. This provides them with greater security and higher income during retirement. On a deposit of ₹1,00,000, senior citizens receive a fixed interest of ₹42,500 over five years. Investors can choose a tenure ranging from 1 to 5 years, depending on their needs. Because this scheme comes with a flexible structure, it offers a suitable solution for both short-term and long-term financial planning. The option to invest up to ₹20 crore also makes this FD attractive to businesses, institutions, and high-net-worth individuals.
How does the LIC FD scheme compare to bank fixed deposits?
Banks across India offer a variety of FD interest rates, but most major banks offer lower returns compared to the LIC FD scheme. For example, Capital Small Finance Bank currently offers a maximum of 7.15% to regular customers and 7.65% to senior citizens. Similarly, Suryoday Small Finance Bank offers a maximum of approximately 7.70%. Regional rural banks like Aryavart Bank typically offer even lower interest rates, ranging from 5.05% to 5.50%, which are not attractive for long-term savers seeking returns that beat inflation.
Compared to these rates, the LIC FD scheme clearly offers better returns, especially for senior citizens. The difference in maturity amount becomes significant over the long term. For example, while many banks offer less than 7.5%, LIC’s range of 7.75% to 8.50% provides an opportunity to grow savings faster. Another advantage is LIC’s strong credibility and long-standing reputation in the financial sector. Many investors prefer LIC deposits because they offer security, trust, and better interest rates, making them a strong alternative to traditional bank FDs.
Maturity Examples and Return Breakdown
To help investors understand the potential returns, LIC has shared several maturity examples. A typical investor depositing ₹50,000 for 3 years at 7.25% would receive ₹60,875 at maturity. This demonstrates how even a small deposit can yield good returns with minimal risk. For a 5-year period at 7.75%, the same ₹50,000 grows to ₹69,375. These examples illustrate how the scheme provides investors with consistent growth without the volatility of the market or fluctuations in interest rates.
Similarly, depositing ₹1,00,000 for 5 years at 7.75% interest yields a maturity amount of ₹1,38,750. For senior citizens, at an interest rate of 8.50%, the maturity amount increases to ₹1,42,500. This clearly shows that senior investors benefit the most under the LIC FD scheme. These interest rates are ideal for savers who want predictable, guaranteed income, especially retirees who prioritize stability. These maturity calculations are straightforward and help individuals plan their financial goals, whether they are saving for emergencies, long-term needs, or regular monthly income support.