LIC FD Interest Rates 2026

What are LIC FD Interest Rates 2026?

LIC FD Interest Rates 2026 are the annual returns on fixed deposits that come under the LIC FD Scheme of LIC Housing Finance Limited. These rates specify the interest an investor will receive on the money deposited for a fixed period under different LIC FD Plans.

Senior citizens are entitled to the highest interest rate of 7.15% p.a. if they opt for a 5-year fixed deposit. For other citizens, the highest rate available is 6.90% p.a. Senior citizens are given a higher rate of interest to motivate long-term savings and provide a higher return on their investments. The minimum deposit amount is Rs 1000.

These interest rates offered by the LIC FD scheme present a great chance for individuals who wish to lead a life by earning stable returns on their savings over a medium-term period. Among the various LIC FD Plans, investors can choose options based on their tenure and income preferences. Irrespective of whether you are a normal citizen or a senior one; LIC HFL provides you with a dependable and safe route to increase your money.

Generally, the LIC FD interest rates in 2026 will range from 6.70% to 6.90% per annum for an ordinary investor, depending on the investment period. Generally, senior citizens avail of an additional benefit of about 0.25% higher interest, thus the effective rate is a bit more attractive for the pensioners. Investors can compare different LIC FD Plans based on tenure, payout option, and investor category before making an investment decision.

Note: Investors can use the LIC Fixed Deposit calculator to understand better about their LIC FD plan returns.

Interest rates vary on the basis of:

• Deposit tenure (1 Year, 15 Months, 18 Months, 2 Years, 3 Years, or 5 Years)

• Cumulative or non-cumulative option

• Investor category (general or senior citizen)

• Deposit amount slab

The LIC FD plans are offered in two major forms:

• Cumulative FD: Interest is compounded and paid at maturity.

• Non-Cumulative FD: Interest is paid monthly, quarterly, semi-annually, or annually. The decision is based on whether the investor is looking for regular income or wealth accumulation.

LIC Fixed Deposit Interest Rates for General & Senior Citizens

LIC Housing Finance allows investors to choose from multiple LIC FD Plans, starting with a minimum deposit of Rs 1,000. Interest rates are between 6.70% and 6.90% p.a., depending on the tenure. For a 3 lakh FD with a 5-year tenure at 6.90% p.a., the maturity amount will be 4,22,353. Hence, if the same amount is kept for 1 year, the maturity amount will be 3, 20, 611. These are rough estimates based on the present interest rates for general citizens.

For precise return calculations, you can check the LIC FD calculator on our website.

Term-wise LIC FD Rates:

• 1 Year (Short Term): ₹1 lakh investment at 6.70% p.a. will return ₹6,700.

• 3 Years (Medium Term): ₹2 lakh at 6.65% p.a. will return ₹2,41,100.

• 5 Years (Long Term): ₹3 lakh at 6.90% p.a. will return ₹1,22,353, with a total corpus of ₹4,03,500.

Read about the traditional policies offered by the LIC of India, the parent organisation of LIC HFL Ltd.

LIC FD Interest Rates 2026

Here is an indicative overview of LIC Housing Finance FD interest rates in 2026 (for deposits up to ₹3 crore):

Interest Rates and Tenure for Public Deposits: For Cumulative Public Deposits

(Effective from 19/06/2025)

Interest Rates and Tenure for Public Deposits: For Non-Cumulative Public Deposits

(Effective from 19/06/2025)

Key Points about LIC FD Interest Rates:

Interest Start Date

Interest will be charged from the day the amount is credited to the LIC HFL account through cheque, RTGS, NEFT, or IMPS.

Interest Payout Options:

• Annual: Paid via electronic transfer or warrant, after applicable TDS.

• Quarterly: Electronic transfer only (Non, Cumulative), after TDS.

• Monthly: Electronic transfer only (Non, Cumulative), after TDS.

Compounding

Interest is compounded once a year under the Cumulative Public Deposit Scheme.

Deposit Limit

A maximum of 3 crore can be deposited during each period (1st15th and 16thmonth end) at card rates. Deposits over 3 crore in a period will be subject to rates applicable to deposits exceeding 3 crore.

Summing Up

LIC Housing Finance offers a range of LIC FD Plans with attractive returns, flexible tenures, and options for both regular and senior citizens. Being backed by excellent credit ratings and stable interest rates, they continue to be a dependable medium-term investment vehicle for steady and somewhat predictable growth.

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