- Fixed Deposit
- LIC Housing Finance
- LIC Fixed Deposit
LIC Fixed Deposit
7.35%
Interest for 3 years
LIC Housing Finance FD Interest Rates January 2023
| Tenure | Normal Citizen FD Rate | Senior Citizen FD Rate |
|---|---|---|
| 1 year - 1 year 6 months 1 day | 7% | 7.25% |
| 1 year 6 months 2 days - 1 year 11 months 30 days | 7.1% | 7.35% |
| 2 years - 2 years 11 months 30 days | 7.35% | 7.6% |
| 3 years - 4 years 11 months 30 days | 7.5% | 7.75% |
Note: All interest rates shown below are as on 9th Jan 2023
About LIC Housing Finance FD
LIC Housing Finance Limited (LIC HFL) is one of the largest Housing Finance Mortgage loan companies in India having its Registered and Corporate office at Mumbai. LIC HFL is a subsidiary company of LIC. The company was incorporated on June 19, 1989, under the Companies Act, 1956 and went public in the year 1994. It has a balance sheet size of Rs. 2.17 Lakh Cr as on 31st March 2020. It recorded a profit of Rs 2,404 Cr in FY20
7% - 7.5%
FD Rate
7.25% - 7.75%
FD Rate for Seniors
₹ 20000
Minimum Deposit
₹ 20 Crores
Maximum Deposit
-
Lock-in
-
FD Tenure
-
Loan against FD
AAA (Stable)
CRISIL Rating
LIC Housing Finance FD Returns Based on Investment Amount
| Investment Amount | For 3 years with interest of 7.35% | For 5 years with interest of 7.5% |
|---|---|---|
| ₹ 50,000 | ₹ 62,293 | ₹ 72,665 |
| ₹ 1 lakh | ₹ 124,586 | ₹ 145,329 |
| ₹ 2 lakh | ₹ 249,172 | ₹ 290,659 |
| ₹ 5 lakh | ₹ 622,931 | ₹ 726,647 |
| ₹ 10 lakh | ₹ 1,245,862 | ₹ 1,453,294 |
Compare LIC Housing Finance Fixed Deposit Returns with Top Banks
Use FD calculator to change values and compare your returns from top banks.
| Maturity Amount | ₹ 107,229 | ₹ 108,139 |
| Total Investment Amount | ₹ 100,000 | ₹ 100,000 |
| Total Interest Gained | ₹7,229 | ₹ 8,139 |
Compare LIC Housing Finance Fixed Deposit Rates with Top Banks
| Bank Name | FD Interest Rates |
|---|---|
| 7.85% - 8.8% | |
| 5.75% - 6.25% | |
| 7% - 7.75% | |
| 7% - 7% | |
| 7.2% - 7.95% | |
| 6.25% - 6.75% | |
| 6.5% - 7% | |
| 6.25% - 6.75% | |
| 5.3% - 5.55% | |
| 5.2% - 5.7% |
Calculate LIC Housing Finance FD Returns
₹ 100,000
Total Investment
7,229
Wealth Gained
₹ 107,229
Maturity Amount
The flexible & tax efficient alternative to FDs.
LIC Housing Finance is among the most reliable term deposit providers. LIC offers several benefits to its depositors. For example, it offers high-interest rates, has flexible tenures and also offers loans against the deposits. In this article, we have covered about LIC FDs and its interest rates in detail.
Features of LIC Housing Finance Fixed Deposit
LIC term deposit schemes offer significant returns. Following are the key features of LIC term fixed deposits:
Tenure
The LIC Housing Finance FD tenure ranges between 1 year to 5 years. Once invested, one cannot change the LIC Housing Finance FD investment tenure. However, one can opt for premature withdrawal, though this attracts some penalty.
Minimum and Maximum Deposit Amount
The minimum amount of deposit for LIC FDs is INR 2,00,000 for the monthly option and INR 10,000 for the yearly option. There is no limit on the maximum investment amount for the deposit. Additional investments can be done in multiples of INR 10,000 for monthly deposits and INR 1,000 for yearly deposits.
LIC FD Interest Rate and Preferential Interest Rates
LIC Housing Finance FD interest rates range between 5.50% and 5.60% for regular citizens, and the tenure range being 12 months to 5 years. Also, LIC offers preferential interest rates for senior citizen depositors. The FD rates for senior citizens range between 5.65% to 5.75%.
Eligibility and Documents Required
To open an FD account in LIC Housing Finance, one has to be eligible. Following are the individuals that are eligible to invest in LIC FDs.
- Individuals, and for minors, a joint account along with a guardian
- Sole proprietors
- Partnership firms
- Joint-stock companies
- Hindu undivided families (HUF)
- Clubs, associations and trusts
- NRIs
To open a term deposit account in LIC Housing Finance, one needs the following documents.
The documents that one requires to invest in LIC FDs are
- FD application form
- 2 Photographs of the depositor
- PAN Card
- ID proof (Aadhar Card, PAN Card, Driving License, or Passport)
- Address proof (Aadhar Card, Electricity Bill, Telephone bill or any other utility bill)
- Age proof (Birth certificate, Discharge certificate PAN Card, or matriculation certificate)
Additional Payments and Safety
LIC Housing Finance does not allow depositing any additional amount in an existing fixed deposit. However, one can always open a new FD to deposit the additional amount. Under the Deposit Insurance Scheme of RBI, DICGC insures all LIC deposits up to INR 5,00,000. Furthermore, the LIC deposit schemes have an AAA or AA by the rating agencies. This indicates that the deposit has the highest safety.
Tax and TDS
Investment in LIC Housing Finance FD qualifies for tax saving under Section 80C of the Income Tax Act, 1961 if the tenure is for five years. Depositors can claim the exemption while filing income tax returns.
The interest that one earns on their LIC FD investments is taxable as per the depositor’s income tax slab rates. Furthermore, the LIC deducts a TDS of 10% (20% if PAN card isn’t submitted) in case the interest income exceeds INR 40,0000 (INR 50,000 for senior citizens).
To determine if the interest income from a LIC Housing Finance term deposit is above or below the TDS threshold limit, one can use the FD calculators available online. Also, depositors can estimate their tax liability using the Income Tax Calculator. Scripbox’s online Income Tax Calculator helps in estimating tax liability and is free to use.
Premature withdrawal and Loan against FD and Overdraft
LIC allows premature withdrawal of fixed deposits but with a penalty of 2% on the contracted rate of interest. LIC also allows investors to take a loan against their FDs to meet their financial requirements without having to break the FD. The loan is provided only against LIC’s fixed deposits.
Investors can take loans such as business loans, education loans, etc., against LIC FD. Also, they can estimate their loan EMI value using the loan EMI calculator. The loan EMI calculator works as a personal loan EMI calculator, car loan EMI calculator and also a home loan EMI calculator. The investor can also estimate the EMI value in multiple scenarios by changing the variables such as personal loan interest rate, home loan interest rate and car loan interest rate.
Nomination Facility and Auto Renewal
Depositors can nominate beneficiaries for their LIC FDs. Also, LIC offers an auto-renewal facility for deposits.
Pan Card
Though a PAN card isn’t mandatory while opening a LIC FD, there are few implications of not disclosing PAN details. The applicable TDS rate will be 20% instead of the usual 10%, as per the regulations of section 206AA. The LIC will not issue any TDS certificate. And all exemption certificates, including Form 15H and Form 15G, will be invalid.
LIC HFL Fixed Deposit Schemes: In Detail
- Sanchay Deposit
- Cumulative Deposit Scheme
- Non-Cumulative Deposit Scheme
Sanchay Deposit
- Tenure: 1 year to 5 years
- Minimum Deposit Amount: INR 10,000 for yearly option and INR 2,00,000 for monthly option.
- Maximum Deposit Amount: No Limit
- Interest Payout: Depositors can choose a suitable interest payment frequency, monthly or quarterly or annually.
- Joint Account: Available, a maximum of three members, can hold the account jointly.
- Loan Facility: LIC Housing Finance FD depositors are eligible for availing loan against their FD.
- Auto-Renewal Facility: Available
- Nomination Facility: Available
Cumulative Deposit Scheme
- Investment tenure- 1 Year, 18 Months, 2 Year, 3 Year and 5 Year
- Interest will be compounded annually
- Interest will be paid on maturity along with Principal Amount
- TDS is deducted at the rate applicable under section 194A
- Minimum investment amount of Rs 20,000 in multiples of Rs 1,000.
- Interest of 5.15% per annum on Public Deposits upto Rs. 20 Crores.
- Interest of 4.50% per annum on Public Deposits above Rs. 20 Crores.
Non-Cumulative Deposit Scheme
- Monthly Interest payment and Annual Interest payment
- Investment period- 1 Year, 18 Months, 2 Year, 3 Year and 5 Year
- Attractive card rates for deposit amount upto Rs 20 Crore and above Rs.20 Crore for all tenure.
- Interest is payable annually on 31st March under Annual Option
- Interest is paid on the 1st day of the month and on 31st March for the month of March under Monthly Option.
- Annual FD- Minimum Amount: Rs. 20,000 and thereafter in multiples of Rs. 1,000
- Monthly FD- Minimum Amount: Rs. 2,00,000 and thereafter in multiples of Rs. 10,000
- Interest rate of 5% per annum on Public Deposits up to Rs. 20 Crores (Monthly Option)
- Interest rate of 4.40% per annum on Public Deposits above Rs. 20 Crores. (Monthly Option)
- Interest rate of 5.15% per annum on Public Deposits up to Rs. 20 Crores (Yearly Option)
- Interest rate of 4.50% per annum on Public Deposits above Rs. 20 Crores. (Yearly Option)
Frequently Asked Questions
LIC Housing Finance term deposit interest rates range between 5.50% and 5.60% for regular citizens. For senior citizens, the interest rates range between 5.75% and 5.85% for a tenure of 18 months to 1 year. Moreover, senior citizens get a preferential rate of interest of 0.5% on their FDs. Also, the interest gets compounded quarterly, and the payout frequency depends on the investor’s choice – monthly, quarterly or annually. The highest term deposit rate for LIC Housing Finance is 5.60% for a regular investor for the tenure of 5 years and above. For the same tenure, the senior citizen FD rate is 5.85%. Returns from LIC term deposits can be calculated using the fixed deposit calculator.
LIC term deposit comes under the Deposit Insurance Scheme of RBI. The DICGC insures all LIC deposits up to INR 5,00,000. Furthermore, the deposit schemes of LIC have an AAA or AA by the rating agencies. This indicates that the deposit has the highest safety.
Yes, the LIC offers recurring deposit schemes. The LIC RD, also known as the Jeevan Saral scheme, is a recurring deposit plan that allows individuals to deposit a fixed amount of money monthly, quarterly, half-yearly, or annually for a specified period of time in return for a predetermined interest rate. Also, interest on LIC RDs are subject to change periodically. The LIC Recurring Deposit is a financial instrument that allows people to save money while still earning interest.
LIC offers a term deposit called Public Deposit Scheme (Sanchay). The scheme is available for both cumulative and non-cumulative deposits with a tenure of 1 to 5 years. The FD rates range between 5.5% to 5.6%.
An FD investment’s growth rate depends on the rate of interest of the investment. To find out in how many years an investment will double, one can follow the rule of thumb. They have to divide 72 with the interest rate to calculate the time in which the FD investment will double. For example, if the interest rate of Public Deposit Sanchay Scheme is 5.6%, then the investment will double in 12.85 years.
LIC is an insurance policy and every investor who has dependents needs to have an insurance policy. Whereas, FD is an investment vehicle that helps in earning returns. It will make the investor’s financial future secure. AN investor would need both an insurance policy as well an investment avenue to secure their future.