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LIC FD Scheme 2025 : If you’re looking for a safe and reliable way to earn a fixed monthly income, the new LIC Fixed Deposit (FD) Scheme could be your best investment choice. This plan from India’s most trusted financial institution, Life Insurance Corporation (LIC), offers stability, regular returns, and zero market risk.
In this FD scheme, investors deposit a fixed amount once and receive a guaranteed monthly payout as interest, ensuring steady income throughout the year. Whether you’re a retired person, a salaried employee, or a small investor, this scheme offers both safety and consistency in returns.
Let’s explore the complete details of the LIC FD Scheme 2025, including its interest rates, eligibility, benefits, and how you can start earning a fixed monthly profit of ₹13,500 with just one-time investment.
What is the LIC FD Scheme?
The LIC Fixed Deposit Scheme is operated by LIC Housing Finance Limited (LICHFL), a trusted subsidiary of LIC. Under this plan, investors deposit a fixed sum for a chosen period and receive monthly interest payouts. The interest rate offered ranges from 7.25% to 7.75% per annum, depending on the tenure.
Senior citizens receive an additional 0.25% higher interest rate, which makes the scheme even more attractive for retirees looking for regular income. The investment duration can be chosen anywhere between 1 year to 5 years, giving flexibility to investors based on their financial goals.
This FD plan ensures complete safety of your capital along with consistent returns, as it is managed by LIC — one of India’s most trustworthy financial brands. It is ideal for conservative investors who want peace of mind and steady income without market volatility.
Earn Monthly Profit on ₹1.5 Lakh Investment
If you invest ₹1.5 lakh in the LIC FD Scheme, you can earn a monthly interest income of around ₹9,500. This return is significantly higher compared to what traditional bank savings accounts offer. The scheme ensures that your money remains safe while you enjoy regular monthly profits.
One of the biggest advantages of this plan is the guaranteed payout — you receive your interest every month without delay. This makes it an excellent choice for pensioners, homemakers, or anyone who wants predictable income every month.
If you ever need to withdraw your money before the FD term ends, partial withdrawal is possible after three months. However, in such cases, the interest rate might slightly reduce. Early withdrawals before three months will not earn any interest, so it’s best suited for medium- to long-term investors.
Benefits of the LIC FD Scheme
There are multiple benefits of investing in the LIC FD Scheme. Firstly, it is completely safe, as the scheme is backed by LIC — a government-owned and highly reliable financial institution. Investors can rest assured that their principal amount is 100% secure.
Secondly, it offers fixed monthly returns, which helps in maintaining a stable source of income. This makes it perfect for retirees or individuals who prefer regular earnings over risky market-linked investments.
Thirdly, investors can enjoy tax benefits under Section 80C of the Income Tax Act if they choose a 5-year lock-in period. This means you not only earn interest but also save money on taxes, making it a dual-benefit investment option.
Eligibility and Documents Required
Any Indian citizen can invest in the LIC FD Scheme. The minimum investment amount is ₹1 lakh, and there’s no upper limit — allowing both small and large investors to benefit. This flexibility makes the scheme accessible to a wide range of people.
To invest, you’ll need a few basic documents such as your Aadhaar card, PAN card, address proof, passport-size photo, and bank details. Once you have these ready, you can visit your nearest LIC branch and fill out the FD application form.
Payments can be made through cheque or demand draft, and after verification, your FD account is opened. From the next month onwards, you start receiving your monthly interest income directly in your bank account.
Loan Facility and Premature Withdrawal
The LIC FD Scheme also offers an optional loan facility after six months of investment. This means if you ever face an emergency or sudden need for funds, you can take a loan against your FD instead of breaking it. The interest rate on such loans is generally lower than that of personal loans.
Additionally, premature withdrawal is allowed after three months. If you withdraw between 3 to 6 months, you won’t earn interest, but after 6 months, partial withdrawal is permitted with a slightly lower interest rate.
This flexibility ensures that your money remains accessible even in unforeseen situations while still earning you returns. The combination of liquidity, safety, and regular income makes this scheme one of the best fixed-income plans available today.
Final Verdict
The LIC FD Scheme 2025 is a perfect example of how you can grow your savings securely while earning fixed monthly income. With an attractive interest rate of up to 7.75%, flexible tenure, tax benefits, and senior citizen bonuses, it ticks all the right boxes for safe investors.
It offers everything that modern investors want — safety, stability, liquidity, and consistent returns — without the fear of market fluctuations. Whether you’re planning for retirement or just looking for a steady side income, this plan fits all needs.
By investing as little as ₹1.5 lakh to ₹1.8 lakh, you can easily earn up to ₹13,500 per month, making it a reliable income option for every household. With LIC’s legacy of trust and performance, this scheme stands out as one of the most rewarding and dependable financial plans of 2025.