LIC FD Scheme 2025: How Investing ₹1.5 Lakh Can Create a Reliable Monthly Income

In a time when stock markets move unpredictably and economic conditions remain uncertain, many investors are turning back to what they trust the most — safe and stable investment options. For people who value security, guaranteed returns, and a regular income, fixed deposits continue to remain one of the most preferred choices.

Among these, the LIC Fixed Deposit Scheme 2025 stands out as a dependable option, especially for those who want peace of mind along with steady earnings. Backed by LIC Housing Finance Limited, this scheme is designed to offer predictable returns without exposing investors to market risk.

Let’s break down everything you need to know about this scheme in a clear, human-friendly way.

What Exactly Is the LIC Fixed Deposit Scheme?

The LIC Fixed Deposit Scheme, officially known as the LIC Housing Finance Corporate FD, is a traditional fixed-income investment. In this scheme, you invest a lump sum amount for a chosen tenure and earn interest at a fixed rate decided at the time of investment.

Unlike shares, mutual funds, or crypto assets, your returns here do not fluctuate with market movements. The interest is assured, making it an ideal solution for people who prefer certainty over high-risk opportunities.

This scheme is especially suitable for:

• Retired individuals looking for pension-like income
• Salaried professionals wanting additional monthly cash flow
• Conservative investors focused on capital safety
• Families planning long-term, stable financial growth

LIC FD Interest Rates in 2025

One of the biggest attractions of the LIC Housing Finance FD is its competitive interest rate, which is often higher than many traditional bank fixed deposits.

Current Interest Rate Structure

• General Public: Around 7.25% to 7.75% per annum
• Senior Citizens: Extra 0.25% interest benefit

With this additional benefit, senior citizens can earn close to 8% annually, making this scheme one of the most attractive low-risk income options currently available in India.

Monthly Income Explained: How Much Can You Really Earn?

Many investors choose the monthly interest payout option, as it works very much like a fixed monthly pension. Let’s look at practical examples to understand how this works.

Example 1: Investing ₹1.5 Lakh

• Investment Amount: ₹1,50,000
• Interest Rate: 7.8% per annum
• Annual Interest: ₹11,700
• Monthly Income: Approximately ₹975

This option is ideal for individuals who want a small but consistent monthly income to support daily expenses.

Example 2: Investing ₹15 Lakh

• Investment Amount: ₹15,00,000
• Interest Rate: 7.8% per annum
• Annual Interest: ₹1,17,000
• Monthly Income: Around ₹9,750

This is why many retirees and long-term investors choose to invest a higher amount — it helps create a strong and dependable monthly income stream.

Minimum Investment and Tenure Options

The LIC FD Scheme is flexible and suitable for both small and large investors.

Key Features at a Glance

• Minimum Investment: ₹1,00,000
• Maximum Investment: No upper limit
• Tenure Options: 1 year to 5 years
• Interest Payout Choices:
  • Monthly
  • Quarterly
  • Yearly
  • Cumulative (paid at maturity)

This flexibility allows investors to plan according to their financial needs and income goals.

Tax Rules You Should Know

While the scheme offers safety and steady returns, it’s important to understand the tax implications clearly.

• Interest earned is fully taxable under Income from Other Sources
• TDS is applicable if interest income exceeds:
  • ₹40,000 in a financial year (general investors)
  • ₹50,000 in a financial year (senior citizens)
• This FD does not qualify for tax deduction under Section 80C

Planning taxes in advance can help you maximize your net returns.

Why Many Investors Prefer LIC Housing Finance FD

There are several reasons why this scheme continues to attract investors year after year:

• Strong trust associated with the LIC brand
• Interest rates higher than most bank fixed deposits
• Multiple interest payout options
• Special benefits for senior citizens
• Stable, predictable, and low-risk income

For conservative investors, these advantages matter more than high but uncertain returns.

How Can You Invest in the LIC FD Scheme?

Investing in this scheme is straightforward and accessible.

You can apply through:

• LIC Housing Finance branch offices
• Authorized LIC agents
• Official LIC Housing Finance platform

Basic Documents Required

• Aadhaar Card
• PAN Card
• Passport-size photograph
• Bank account details

The process is simple and usually completed without complications.

If your priority is capital safety, guaranteed returns, and a steady monthly income, the LIC FD Scheme 2025 is definitely worth considering. It may not offer flashy returns like equity markets, but it provides something far more valuable for many investors — financial peace of mind.

For retirees, risk-averse investors, or anyone planning a dependable income stream without market stress, this scheme can play an important role in a balanced financial portfolio.