LIC (Life Insurance Corporation of India) is one of the country’s most trusted financial institutions. Apart from insurance, LIC also offers safe investment choices. One of the most popular options is the LIC FD Scheme 2025, known for secure returns and steady monthly income.
This article explains the LIC FD Scheme 2025, its features, interest rates, eligibility, required documents, and how the monthly payout works.
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Table of Contents
About the LIC
The Life Insurance Corporation of India (LIC) is an Indian public sector life insurance company headquartered in Mumbai. It is India’s largest insurance company and its largest institutional investor with total assets under management worth ₹54.52 lakh crore (US$640 billion) as of March 2025. It is under the ownership of Government of India and administrative control of the Ministry of Finance.
The Life Insurance Corporation of India was established on 1 September 1956, when the Parliament of India passed the Life Insurance of India Act, nationalising the insurance industry in India. Over 245 insurance companies and provident societies were merged.
LIC reported 290 million policyholders as of 2019, a total life fund of ₹28.3 lakh crore (US$401.87 billion). The company also reported having settled 26 million claims in 2018–19. It ranked 98th on the 2022 Fortune Global 500 list with a revenue of ₹775,283 crore (US$98.63 billion) and a profit of ₹4,415 crore (US$561.67 million)
What Is the LIC FD Scheme 2025?
The LIC FD Scheme 2025 is managed by LIC Housing Finance Limited (LIC HFL) and is also known as a Corporate Fixed Deposit.
It is designed for people who want:
Safe and secure investment
Guaranteed returns
Higher interest than regular bank FDs
Minimum investment: ₹1,50,000
Maximum limit: No upper limit
Interest rate: 7.25% to 7.75% (senior citizens get an extra 0.25%)
Tenure: 1 to 5 years
Key Features of LIC FD Scheme 2025
Offered by LIC Housing Finance Limited
Interest rates between 7.25% and 7.75%
Senior citizens receive additional interest
Higher returns compared to normal bank fixed deposits
Tenure options from 1 to 5 years
Monthly Interest Payment in LIC FD Scheme 2025
Interest under the LIC FD Scheme 2025 is paid every month, making it a good option for regular income.
Example:
If you invest ₹15 lakh at 7.8% annual interest, you will receive:
➡️ ₹9,750 per month as interest
This ensures a stable monthly income for investors.
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Minimum Amount & Tenure
Minimum investment: ₹1,00,000
Maximum limit: No upper limit
FD duration: 1 to 5 years
Tax Benefits Under LIC FD Scheme 2025
A 5-year FD under LIC offers tax benefits under Section 80C.
If annual interest income is below ₹40,000, you can submit Form 15G/15H to avoid TDS.
Documents Required
To invest, you will need:
Identity proof
Address proof
PAN card
Passport-size photograph
Bank account details
Visit your nearest LIC HFL branch, fill out the FD form, submit documents, and make the payment by cheque or demand draft. After verification, you will receive your Fixed Deposit Certificate.
Loan Facility Under LIC FD Scheme 2025
A loan can be availed after 6 months of opening the FD.
Loan amount depends on the FD value.
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Premature Withdrawal Rules
Allowed after 3 months.
If withdrawn early, interest may be reduced.
If withdrawn before 6 months, no interest is paid.
