LIC Fixed Deposit Scheme for Senior Citizens in 2023

Life Insurance Corporation of India is the only public sector life insurance provider in India. LIC was founded in 1956 and merged with more than 245 insurers and other provident societies. The company headquartered in Mumbai offers a wide range of life insurance plans from pure protection term plans to investment and savings insurance products. With its strong presence in both urban and rural areas, LIC is the one preferred choice of millions of customers.

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58.9 Million
Registered Consumer
Insurance Partners
26.4 Million
Policies Sold

The company is registered with the National Housing Bank and trades on the Bombay Stock Exchange and National Stock Exchange (NSE). One of the largest Housing finance companies of India, LIC HFL i.e., LIC Housing Finance Limited provides several fixed deposits (FD) plans that cater to the requirements of every type of investor. LIC HFL is a public deposit scheme introduced in 2007, comes under the Sanchay Scheme. LIC provides inexpensive interest rates and a good return rate on the complete investment among other benefits. 

LIC Fixed Deposit Scheme for Senior Citizens in 2023

The Senior Citizen FDs are the term deposit policies with good rates of interest that are offered by leading banks and LIC to persons above 60 years of age. These type of FD accounts offers a range of benefits to senior citizens. The regular payout option with good interest helps senior citizens to get a reliable income flow in their twilight years. Several benefits offered by LIC fixed deposit scheme for a senior citizen are: 

  • Special interest rates lead to more earnings 
  • The earned interest on these deposits can be turned into a monthly income and thus, provides 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 is very beneficial for senior citizens as it becomes a source of additional income. 
  • The tenure of LIC Housing Finance FDs ranges from 36 to 60 months. 
  • 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. 

LIC FD Interest Rates for Senior Citizens 

This LIC FD scheme aims to entice senior citizens >60 years of age in fixed deposits. It offers a maximum rate of interest to senior citizens than the general civic. Here are the FD rates of interest for Senior Citizens 2023:


FD Interest Rates

Senior Citizen FD Interest Rates

1 year



18 months



2 years 



3 years 



5 years 




Additional Details

Monthly Option 

Deposit (Minimum Amount)

Rs 2 lakh

Extra deposits in multiples of 

Rs. 10,000

Payment of Interest on the non-cumulative scheme on 

1st day of the month and 31st march 

For Senior Citizens 

Additional rate of interest at 0.25% for the deposit of Rs 20,000 and above but up to Rs 20 Crores. 

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

Key Features of LIC Fixed Deposit Rates 2023

LIC Housing Finance Fixed Deposits are one of the best options of investment offered for investors who want to finance in a fixed salary and earn more returns as compared to the savings account. 

  • Open a LIC HFD account with a sum as low as up to no limit 
  • The minimum deposit amount is Rs 2 lakh for the monthly option 
  • The minimum deposit amount is Rs 10, 000 for the yearly option 
  • Extra deposits can also be made in multiples of Rs. 10,000 for monthly and Rs. 1,000 for yearly deposits. 
  • The duration of FD tenure is 18 months i.e., 1 year 4 months to 5 years 
  • The facility of nomination is available under this plan
  • The loan is available against the FD according to the LIC Housing Finance 
  • This scheme offers an option to withdraw a part of your deposits
  • Option of automatic renewal after the maturity
  • The FD rates for Senior Citizens are 5.50% to 6.00 % pa

Additional Features of LIC FD Deposit Scheme 

LIC Housing Finance does not provide an option to deposit any extra amount in an existing FD. However, an individual is allowed to open a new FD account to deposit an additional amount. As per the RBI’s deposit scheme, DICGC covers all deposits of LIC up to Rs. 5 Lakh. Additionally, the deposit schemes of LIC also have an AAA or AA by the rating agencies which indicates its highest 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 of the 5 years. Depositors are allowed to claim the exemption when filling the returns of income tax. And also, a TDS of 10% is deducted in case the interest income exceeds Rs. 4 lakh and Rs. 5 lakhs for Senior Citizens. 

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

Factors affecting LIC FD interest rates for Senior Citizen 

There are several factors on which LIC FD rates depend that include 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 of the factors that make an impact on 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 play a very important role in determining the economy’s interest rates. 
  • Economic situations – Various economic conditions have a very vital role in determining the interest rates that are offered by financial institutions or banks in the nation. Nowadays in rising economies, individuals try to gain from credit to meet their financial requirements. And in case of high credit demand, banks might offer good interest rates to call more depositors. 

What is the Eligibility to 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 Photograph of the Depositor 
  • Address proof 
  • Identity Proof 
  • PAN card 
  • Form 60/61
  • Aadhar Card 

Wrapping It Up!

LIC is one of the largest insurance companies that also offer a fixed deposit scheme for various age groups. Senior Citizens i.e., 60 years or above can apply for LIC Fixed Deposit Scheme for Senior Citizens. It provides a good rate of interest on the deposits and so that a senior citizen can spend his/her retirement years without any financial stress.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:-
++Returns are 10 years returns of Nifty 100 Index benchmark

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