LIC FD Interest Rates 2025

CRISIL, a credit rating agency, has given LIC Housing Finance an AAA/Stable rating. An AAA rating indicates that LIC Housing Finance is highly likely to repay your principal and interest on time, making these deposits a relatively safe investment option.

Latest LIC FD Interest Rates (Effective from 19th June 2025)

LIC FD Public Deposit Scheme Interest Rates

Here are the current interest rates on LIC Public Deposits Upto ₹3 Crore:

LIC FD Deposit Amount & Interest Payout Options

LIC Housing Finance offers flexible investment and payout options to cater to different financial needs. Here's a breakdown of the minimum deposit amounts and interest payment schedules under the Non-Cumulative Deposit Scheme:

Note: In the Cumulative Scheme, interest is compounded annually and paid at the end of the tenure.

LIC FD Interest Rates Above ₹3 Crore (Effective 19 June 2025)

LIC FD Interest Rates for Corporate Deposits

The LIC Housing Finance SANCHAY Corporate Deposit Scheme offers safe and high-return investment options for corporates and institutions. With interest rates ranging from 6.45% to 6.80% p.a. for deposits up to ₹20 crore, it provides flexible tenures, secure returns, and the trust of LIC HFL—making it an ideal choice for managing surplus corporate funds.

Interest rates for corporate deposits up to ₹20 crore are as follows:

Note: Cumulative deposits have interest compounded annually and paid at maturity.

Note: Non-cumulative deposits offer regular interest payouts—quarterly or annually.

Minimum Deposit Amount – LIC SANCHAY Corporate FD

The LIC SANCHAY Corporate Deposit Scheme offers two payout options—Quarterly and Yearly , each with a specific minimum investment requirement:

• Quarterly Option: Minimum deposit of ₹2,00,000 with additional amounts accepted in multiples of ₹10,000
• Yearly Option: Minimum deposit of ₹20,000 with top-ups allowed in multiples of ₹1,000

This flexible structure allows corporates to invest based on their fund availability and preferred payout frequency.

Types of LIC Fixed Deposits

1. Sanchay Deposit

• Investment Period: You can invest for 1 year to 5 years.
• Minimum Deposit: The minimum deposit is ₹10,000 for yearly interest payments and ₹2,00,000 for monthly interest payments.
• Maximum Deposit: There is no maximum limit on the deposit amount.
• Interest Payment Options: You can choose how often you receive interest payments: monthly, quarterly, or annually.
• Joint Accounts: You can open a joint account with up to three people.
• Loan Facility: You can borrow money against your FD.
• Auto-Renewal: You can choose to automatically renew your deposit when it matures.
• Nomination: You can nominate someone to receive the money from your deposit if you pass away.

2. Cumulative Deposit Scheme

• Investment Periods: You can invest for 1 year, 18 months, 2 years, 3 years, or 5 years.
• Interest Calculation: Interest is calculated and added to your principal amount each year.
• Interest Payment: You receive the total interest and your principal amount at the end of the investment period.
• Tax Deducted at Source (TDS): Tax is deducted at the applicable rate as per the Income Tax Act.
• Minimum Investment: The minimum investment amount is ₹20,000, and you can only invest in multiples of ₹1,000.

3. Non-Cumulative Deposit Scheme

• Interest Payment Options: You can choose to receive interest payments monthly or annually.
• Investment Periods: You can invest for 1 year, 15 months, 18 months, 2 years, 3 years, or 5 years.
• Interest Rates: You can earn attractive interest rates on deposits of up to ₹20 crore and above ₹20 crore.
• Annual Interest: If you choose annual interest payments, you will receive the interest on March 31st of each year.
• Monthly Interest: If you choose monthly interest payments, you will receive the interest on the first day of each month, except for March, when you receive it on March 31st.
• Minimum Investment:
  • For annual interest payments: ₹20,000 and thereafter in multiples of ₹1,000.
  • For monthly interest payments: ₹2,00,000 and thereafter in multiples of ₹10,000.

Premature Withdrawal of LIC Fixed Deposits

• LIC HFL's Discretion: Whether or not you can withdraw your Fixed Deposit early is entirely up to LIC Housing Finance.
• Withdrawals Within 3 Months: If you withdraw your deposit within the first three months, you will not receive any interest, regardless of any lock-in period requirements.
• Withdrawals Between 3 and 6 Months:
  • For individual depositors, you will receive interest at a rate of 3% per year.
  • For other types of depositors, you will not receive any interest.
• Withdrawals After 6 Months:
  • If you withdraw your deposit after six months but before the maturity date, you will receive interest at a rate that is 1% lower than the original interest rate applicable to your deposit.
  • If the interest rate for that specific period is not clearly defined, you will receive interest at a rate that is 2% lower than the lowest interest rate currently offered by LIC HFL for similar deposits or the rate applicable for the next shorter deposit period, whichever is lower.

Recommended Read: Get Loan Against LIC Policy

Features of LIC Fixed Deposits

Minimum Deposit Amount:

• Cumulative Deposit Scheme: The minimum deposit for this scheme is ₹20,000, and you can only deposit in multiples of ₹1,000.
• Non-Cumulative Deposit Scheme:
• For annual interest payments, the minimum deposit is ₹20,000, and you can only deposit in multiples of ₹1,000.
• For monthly interest payments, the minimum deposit is ₹2,00,000, and you can only deposit in multiples of ₹10,000.

Interest Payment Options: In the Non-Cumulative Deposit Scheme, you can choose to receive interest payments either monthly or annually.

Interest Calculation: In the Cumulative Deposit Scheme, interest is added to your principal amount each year, which helps your money grow faster.

Interest Payment:

• Cumulative Deposit Scheme: You receive the total interest earned, along with your original principal amount, at the end of the investment period.
• Non-Cumulative Deposit Scheme:
  • Annual Interest Payments: You receive the interest annually on March 31st of each year.
  • Monthly Interest Payments: You receive the interest on the first day of each month, except for March, when you receive it on March 31st.

Interest Payment Methods:

• Non-Cumulative Deposit Scheme:
  • Annual Interest: You can receive interest payments through interest warrants or by having the money directly transferred to your bank account.
  • Monthly Interest: Interest payments for Non-Cumulative Public Deposits are made electronically, and the applicable tax is deducted.

Joint Accounts: You can open a joint account with up to three other people for the Sanchay Deposit.

Loan Facility: You can borrow money against your Fixed Deposit.

Auto-Renewal Facility: You can choose to automatically renew your deposit when it matures.

Nomination Facility: You can nominate someone to receive the money from your deposit if you are no longer able to.

Senior Citizen Benefits: Senior citizens receive an additional 0.25% per year interest on their deposits (up to ₹20 crore) compared to the regular interest rates.

Deposit Acceptance: Deposits can only be made by cheque or through online transfers such as RTGS, NEFT, or IMPS.

Auto Repayment Facility: You can choose to have the maturity amount of your deposit automatically transferred to your designated bank account.

Disclaimer: All the features, interest rates, and other information specified above are sourced when this page was written and are subject to change. For exact information, refer to the LIC website or contact them.

Frequently Asked Questions

Disclaimer:

This page includes information that has been compiled from many sources and is only offered for informational purposes. Since this type of data might change over time, we cannot guarantee that the information supplied or included within it is accurate. It is anticipated that the user would confirm with the relevant source prior to taking any choices or actions.