LIC FD for Senior Citizens 2025

LIC FD for Senior Citizens 2025: LIC HFL Sanchay Fixed Deposit Scheme

LIC FD for Senior Citizens 2025 is named LIC HFL Sanchay FD for senior citizens. It 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 LIC FD for Senior Citizens 2025 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 LIC FD for Senior Citizens 2025 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.

Key Benefits of LIC FD for Senior Citizens 2025

The LIC FD for Senior Citizens 2025 is a reliable and beneficial option for retirees. Here are the benefits of choosing the LIC senior citizen FD plan:

Guaranteed and Secure Returns

The LIC New FD Scheme 2025 offers fixed, assured returns backed by LIC’s strong reputation, making it a safe choice for risk-averse senior citizens.

Higher LIC FD Rates for Senior Citizens 2025

Compared to regular FDs, the LIC FD for Senior Citizens 2025 interest rates for senior citizens are higher, ensuring better earnings to help meet everyday expenses and beat inflation.

Tax Benefits Under Section 80TTB

Under Section 80ttb, interest income earned through the LIC senior citizen FD plan qualifies for tax deductions up to ₹50,000 annually, helping reduce the overall tax burden.

Easy and Hassle-Free Investment Process

The LIC FD for senior citizens 2025 is easy to open, either online or at a nearby LIC branch, offering a smooth and accessible experience for all.

Low-Risk Investment Option

With the fixed LIC senior citizen scheme interest rate, there’s no exposure to market volatility, making it ideal for those who prefer capital preservation over high-risk gains.

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 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 for Senior Citizens 2025

• 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.

• According to 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 FD for Senior Citizens 2025 Interest Ratess

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.

What to Consider Before Investing in LIC FD for Senior Citizens 2025?

The LIC FD for Senior Citizens 2025 offers a secure and reliable investment opportunity with attractive fixed returns. However, before investing in this, , there are several important factors that senior citizens should carefully evaluate.

• Liquidity Constraints: Despite having a premature withdrawal option, accessing funds before maturity may invite penalties. These charges can impact your returns, thus, they should be considered before locking in your funds.

• Tax Implications: The LIC FD interest rates for senior citizens are attractive, but the interest income earned is fully taxable. The amount received is considered annual income and taxed according to the applicable individual tax slab.

• Interest Rate Fluctuations: The LIC FD for Senior Citizens 2025 interest rate is fixed at the time of investment, which ensures predictable earnings throughout the tenure. However, market interest rates can change due to economic conditions or policy updates.

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 FD for Senior Citizens 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, the LIC FD for Senior Citizens 2025 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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