LIC FD for Senior Citizens 2025

LIC HFL Sanchay Fixed Deposit Scheme for Senior Citizens in 2025

The LIC HFL Sanchay FD for senior citizens is a fixed-income product that assures steady returns. Launched in 2007 by LIC of India, this LIC Fixed Deposit plan offers attractive interest rates under the following two options:

• Cumulative Scheme 

• Non-Cumulative Scheme

The plan compounds the interest rate annually, and the regular payout option with good interest helps senior citizens get a reliable income flow in their old age. Several benefits offered by the LIC fixed deposit scheme for a senior citizen are:

• Senior citizens earn interest rates ranging from 6.50% to 6.90% per annum, depending on tenure and payout option.

• The interest earned on these deposits can be converted into a monthly income, providing a comfortable life after retirement.

• The depositor can get the tax benefits on Senior Citizen Tax Deposit u/s 80C of the IT Act. 

• The regular payout option benefits senior citizens as it becomes a source of additional income.

• The tenure of LIC Housing Finance FDs ranges from 1 to 5 years. 

• Currently, the maximum rate of interest (ROI) on LIC HFL is 6% for senior citizens. This is paid along with a yearly option of non-cumulative and cumulative term deposits for 3-5 years for deposits of less than Rs. 20 Crores. 

• The plan provides the option of pre-maturity withdrawal upon request. 

• The nomination facility is available under which the nominee will have the right to receive the amount due. 

• A loan facility is available with a limit of 75% of the fixed deposit.

• The plan provides an auto-repayment feature through which principal and interest are credited to your bank account on maturity.

• It also offers an auto-renewal feature, in which the deposit is renewed automatically according to instructions at prevailing interest rates.

LIC FD For Senior Citizens 2025 - Interest Rates 

This LIC FD for senior citizen scheme aims to attract senior citizens >60 years of age into fixed deposits. It offers a maximum interest rate to seniors compared to than the general public. Here are the LIC fixed deposit interest rates for senior citizens in 2025 

Disclaimer – Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer. 

Additional Features of LIC FD Deposit Scheme 

• LIC Housing Finance does not allow additional deposits into an existing fixed deposit account. Investors wishing to deposit additional amounts need to open a new fixed deposit account.

• In accordance with Reserve Bank of India regulations, all fixed deposits with LIC Housing Finance are insured up to ₹5 lakh under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme.

• LIC Housing Finance's fixed deposit schemes are rated AAA/Stable by CRISIL, reflecting the highest level of investor safety.

Tax Benefits and TDS 

LIC FD Deposit Scheme for Senior Citizens provides tax benefits under section 80C of the Income Tax Act, 1961, if the duration is 5 years. Depositors can claim the exemption when filing the income tax returns. And also, Income tax will be deducted at source according to the provisions of the Income Tax Act, 1961, at the applicable rates.

*Tax Benefit is subject to changes in tax laws. Standard T & C apply 

Factors Affecting LIC Fixed Deposit Interest Rates

There are several factors on which LIC FD rates depend, including both internal and external determinants. These factors are the Reserve Bank of India, socio/economic conditions, fluctuations in the market, and the LIC's liquidity position. Let's understand some of the basic elements in detail:

• Increase in Prices – Inflation is one factor that impacts term deposit rates, which determines the rates of interest offered by any bank or other financial institution to a large level.

• RBI Strategies – RBI guidelines and policies are essential for the economy's interest rates.

• Economic situations – Various economic conditions play a vital role in determining the interest rates offered by financial institutions or banks in the nation. Individuals try to gain credit in rising economies to meet their financial requirements. Banks might offer reasonable interest rates to attract more depositors in case of high credit demand.

Who Can Open an FD Account for Senior Citizens with LIC?

• An individual or minors or having a joint account with a guardian 

• Partnership organizations 

• NRIs 

• Trusts, clubs, and associations 

• HUF i.e., Hindu Undivided Families 

• Joint Stock Companies 

• Sole Proprietors 

What are the Documents Required to Open an FD account with LIC? 

• Application Form 

• Two Photographs of the Depositor 

• Address proof 

• Identity Proof 

• PAN card 

• Form 60/61

• Aadhar Card 

Wrapping It Up!

The LIC Fixed Deposit Scheme for Senior Citizens in 2025 is a reliable option for those seeking stable returns with minimal risk. It offers higher interest rates than regular deposits and provides flexible tenures, easy payout options, and additional safety through AAA-rated deposits and DICGC insurance coverage. With features like nomination, loan facility, tax benefits, and assured returns, it is a practical choice for senior citizens looking to secure their post-retirement income. Those eligible can easily open an account by submitting the required documents and enjoy peace of mind with steady earnings.

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