LIC FD Interest and Maturity Amount Calculator

With the LIC FD Calculator, you can calculate the maturity amount for a fixed deposit in the LIC Housing Finance The FD Calculator estimates the amount you will get once the LIC HFL FD matures. You need to input the following information, investment amount, tenure and compounding period to determine the LIC FD interest and maturity amount.

LIC Fixed Deposit Features

LIC Fixed Deposit offers investors high interest rates and minimum risk. Following are some of the key features of a LIC fixed deposit account:

  • Guaranteed Returns: LIC deposit schemes offer guaranteed income at a fixed interest rate.
  • Tenure: The fixed deposits tenure ranges from one year to five years.
  • Minimum Amount: The minimum amount to open a LIC FD account is INR 1,000.
  • Maximum Amount: There is no limit on the maximum amount of investment in LIC FD.
  • LIC FD rates: The LIC fixed deposit interest rate ranges between 6.75% to 7.65% p.a.
  • Safety: The Deposit Insurance Scheme ensures the LIC deposits up to INR 5,00,000.
  • Loan against FD: LIC provides its depositors with a facility to avail a loan against their FDs. This allows investors to meet their financial gaps and liquidity requirements without withdrawing or breaking their LIC FD deposit.
  • Nomination Facility: LIC depositors can nominate beneficiaries while opening the FD account.
  • Auto-Renewal: LIC offers an auto-renewal facility of the fixed deposit account.

What is a LIC FD Calculator?

LIC FD Calculator is a simple online tool that helps in estimating the returns from an FD investment. The calculator only requires simple inputs like investment amount, target amount, interest rate, and tenure. The output of the LIC FD calculator provides aid in better financial planning.

However, one must understand that the LIC FD Calculator only provides an estimation and doesn’t guarantee any returns. The actual return might vary, and the exact maturity amount will be known only after one invested in it.

How to use the LIC FD Calculator?

It is essential to check the return from an investment. One can understand and plan their goals in a better way if the returns are in terms of wealth accumulated rather than in terms of percentage. There are two ways one can estimate the returns from FD investment using Scripbox LIC FD Calculator, and they are the invest amount approach and target amount approach.

Investment Amount Approach

Following are steps that you can follow to use the LIC FD Calculator using the Investment Amount Approach:

  • Firstly, enter the investment amount that you intend to invest in the LIC FD scheme.
  • Now, use the slider for selecting the tenure of the investment. For LIC FD, the tenure usually varies from one to five years.
  • Then, use the slider to select the interest rate on the LIC FD.
  • Then, select the compounding period from the available options, and they are monthly, quarterly, half-yearly and yearly options. Compounding frequency is the number of times the interest will be compounded, and the interest amount depends on this, hence it has to be selected carefully.
  • Lastly, select yes, if you are a senior citizen.

After all the inputs are entered, the LIC FD calculator automatically shows the interest and maturity amount. The LIC FD calculator shows a tabular format of the interest earned each year along with the opening and closing balance. Moreover, the LIC FD calculator gives a graphical representation of the initial investment and maturity amount.

Target Amount Approach

While the investment amount approach requires you to enter the investment amount, the target amount approach estimates the investment amount based on the amount you expect from the LIC FD investment. Following are the steps that you need to follow to use the LIC FD Calculator using the Target Amount Approach:

  • Firstly, select how you want to receive the interest from LIC FD, as a regular income or in a lump sum.
  • Secondly, enter the target amount you want to receive from the LIC FD investment.
  • Lastly, enter the during, interest rate and compounding frequency that the LIC FD offers. Also, select yes, if you are a senior citizen.

The LIC FD calculator gives the investment amount needed to achieve the target and estimates the interest you might earn. Moreover, the LIC FD Calculator shows a tabular representation of opening balance, interest earned and closing balance for each year.

Benefits of using LIC FD Calculator

  1. The LIC FD interest rates calculator helps in estimating the returns within a few seconds and aids in making quick and well informed investment decisions.
  2. The interest amount from LIC FD investment is affected by tenure, interest rate, compounding frequency, and investment amount. One can use the calculator to see which factor affects the interest rate the most by adjusting them and then can compare the results.
  3. Banks and NBFCs offer different FD schemes FD interest rates. Using the LIC FD calculator, they can compare the maturity amount of different banks and NBFCs.
  4. Investors can compare the results of the LIC FD Calculator with the returns from other investments and see which investment gives higher returns. For example, an investor who wants to compare the results of the LIC FD investment with PPF can use the Scripbox PPF Calculator and LIC FD Calculator.
  5. The Scripbox LIC FD calculator has two approaches, namely, the investment and target amount approach. Investors who know how much to invest can use the investment amount approach, while the investors who know how much funds they want to accumulate can use the target amount approach on the LIC FD calculator.
  6. The LIC FD calculator provides results in graphical and tabular format clearing showing the opening balance, interest earned, and closing balance for each year during the entire tenure of the investment. Hence investors can know how much balance is left in the FD after every interest payout.

How is LIC FD Interest Calculated?

The interest amount from LIC FD investment depends on a number of factors such as investment amount, tenure of the FD, compounding frequency, and the rate of interest. The interest can be calculated using two methods, namely, simple interest and compound interest. Let us understand both the methods with the help of an example.

Simple Interest on Fixed Deposit

Simple interest on an FD is the interest earned for a predetermined period at a predetermined interest rate. Also, the interest earned will be the same throughout the tenure of the investment.


  • Simple Interest = (P * R * T)/ 100
  • P- Principal amount or investment amount
  • R- Rate of interest (%)
  • T- Tenure


Ms Anu wants to invest INR 25,000 for 3 years at an interest rate of 10% per annum.

For Ms Anu, the principal amount (P) is INR 25,000, rate of interest (R) is 10%, and tenure (T) is 3 years.

Simple Interest = (INR 25,000 * 10 * 3 years)/ 100 = INR 7,500

Maturity Value = Principal amount of Investment + Simple Interest earned during the tenure

= INR 25,000 + INR 7,500

= INR 32,500

Compound Interest on Fixed Deposit

Compound interest is the interest on the principal amount plus the interest accumulated so far. In other words, it means the interest is earning interest. LIC FDs are both cumulative and non cumulative FDs. For non cumulative FDs, the interest is paid on March 31st each year. Whereas, for cumulative FDs, the interest is paid at maturity, and the interest is compounded annually. This means, an investor investing in LIC Cumulative FD will receive interest directly upon maturity, and each year, the interest earned from the FD will get added to the principal amount.


  • A = P (1+r/n) ^ (n * t)
  • A = Maturity Amount
  • P = Principal amount of investment
  • r = Rate of Interest (in decimals)
  • n = number of compounding in a year
  • t = number of years


Ms Anu invests INR 25,000 for three years at an interest rate of 10% per annum compounded annually.

For Anu, the principal amount (P) is INR 25,000, rate of interest (r) is 10%, tenure (t) is three years, and the number of compounding periods is 1 (n)

Maturity Amount = 25,000 (1+0.10/1) ^ (1*3)

A (maturity amount) = INR 33,275

Interest income = INR 33,275 – INR 25,000 = INR 8,275

Frequently Asked Questions

Is LIC fixed deposit safe?

The Deposit Insurance Scheme insures the LIC deposits up to INR 5,00,000, hence LIC fixed deposits are considered safe.

How many years will FD double in LIC?

To know in how many years LIC FD will double, we can follow the 72 rule. We have to divide 72 by the interest rate, and the result will be the number of years LIC FD will double. For example, for a tenure of 3 years, if the LIC FD interest rate is 5.6%. An investor can double the investment amount by investing for this tenure in LIC FD in 12.85 years (72/5.6).

What is the highest FD rate for LIC?

The highest LIC FD interest rate is 7.40% for a regular investor for the tenure of 3 to 5 years and 7.65%p.a.

Does LIC provide a Loan against FD?

Investors can avail loan against their LIC FD. Hence, LIC provides an opportunity for the investors to meet their liquidity requirements without breaking their LIC FD. Also, the loan is offered only against LIC FDs. The terms and conditions of the loan vary as per LIC norms.

Is there a Premature withdrawal facility available with LIC?

LIC allows its investors to withdraw the deposit amount prematurely. However, LIC charges a penalty for premature withdrawal. LIC charges a penalty of 2% on the contracted rate of interest.