LIC FD Plans 2026

The scheme carries a CRISIL AAA/Stable rating and allows loans of up to 75% of the deposit amount, making it one of the more secure non-bank fixed deposit options available in India.

What is the LIC FD Scheme?

LIC FD Plans are fixed deposit schemes offered by LIC Housing Finance Ltd. (LIC HFL), a housing finance company and subsidiary of Life Insurance Corporation of India. The primary product under this umbrella is the Sanchay Public Deposit Scheme, launched in May 2007, which has maintained a CRISIL AAA/Stable credit rating since its inception indicating a very high degree of safety and consistent repayment track record.

Unlike bank fixed deposits, LIC FD plans are offered by a Non-Banking Financial Company Housing Finance Company (NBFC-HFC) and are regulated under the Reserve Bank of India's NBFC-HFC guidelines. They offer competitive interest rates, flexible tenures, and additional benefits like loan against deposit and nomination facility making them a reliable fixed-income option for conservative investors.

LIC FD scheme 2026 details– Information at a Glance:

LIC Fixed Deposit Interest Rates 2026

The following LIC Fixed Deposit interest rates are effective from June 2025 and apply to the Sanchay Public Deposit Scheme:

Note: The LIC FD Scheme 2026 interest rates are subject to change, please check LICHFL Website for the latest interest rates.

Points to note:

The LIC FD Scheme 2026 fixed deposit earns interest from the date of the fund credit to the LICHFL account through cheque, RTGS, NEFT, or IMPS

Key Rate Observations

• The quarterly non-cumulative option offers the highest rate at 6.90% for a 5-year tenure, making it the most attractive for investors seeking regular payouts

• The yearly cumulative option benefits from annual compounding, which produces a higher effective yield over longer tenures than the nominal rate suggests

• Senior citizens earn up to 7.15% per annum on the 5-year quarterly non-cumulative option after the additional 0.25% benefit is applied

What are the Types of LIC Fixed Deposit Scheme 2026?

Sanchay Public Deposit Scheme

Introduced in May 2007, Sanchay Public Deposit is an LIC fixed deposit scheme that has been a favourite of regular retail investors. The credit rating for an LIC FD from CRISIL is AAA/Stable. Apart from resident individuals, the deposit can also be made by partnership firms, cooperative societies, etc.

Children can also be the owners of this FD under their parents’/guardians’ supervision, with the account being managed on their behalf until they reach the age of majority.

Corporate Deposit Scheme

These corporate deposits are quite a different scheme as they are not intended to be accessed by individual investors. The market for these is public limited companies, private limited companies, corporations, statutory boards, other banks, financial institutions, etc., i.e. very large-scale institutions. Nevertheless, like Sanchay FDs, Corporate FDs or LICs also have a CRISIL AAA/Stable rating. The following points briefly describe some other features of these FDs.

Green Deposit Scheme

The green deposit frameworks by RBI are essentially designed to incentivize deposit banks, NBFCs, and HFCs to issue deposits to individuals which, in turn, help meet the environmental sustainability objectives of these institutions.

These types of deposits not only raise funds from investors but also channel the money as a credit for green projects that are environmentally friendly or sustainability-specific. In addition, these schemes keep the interests of depositors in mind, try to counter the problem of greenwashing, and more.

LIC FD vs Bank FD vs Post Office FD

One of the most common questions for investors evaluating LIC FD plans is how they compare with bank FDs and Post Office schemes — two of the most popular alternatives for conservative investors in India:

Key takeaway: LIC FD plans offer competitive rates with high safety (CRISIL AAA), but the TDS threshold is significantly lower (₹5,000 vs ₹40,000 for bank FDs), which means investors earning above ₹5,000 annually in interest will face TDS deduction earlier. Bank FDs also have the added protection of DICGC insurance up to ₹5 lakh per depositor, which LIC HFL FDs do not carry.

What are the Key Features of LIC FD Plan 2026?

Auto Repayment

If you choose the auto repayment option in the LIC FD Plan, your maturity amount will be transferred to your registered bank account. For the non-cumulative LIC FD scheme, only the principal is returned at maturity as the interest is paid out at regular intervals.

Renewal

By choosing auto renewal, you allow the principal to be reinvested automatically for the identical tenure. The interest rate for the renewed LIC Fixed Deposit Plan is the one prevailing on the date of renewal, thereby ensuring that the investment is not broken.

Premature Withdrawal

If an investor wants to withdraw from a LIC Fixed Deposit before maturity, LIC Housing Finance Ltd. is the only one who can grant the permission. The investor must comply with the Non-Banking Financial Company Housing Finance Company (Reserve Bank) Directions, 2021 and other applicable RBI guidelines as the matter is subject to these.

Nomination

Individual depositors have the option to have a nomination under the LIC FD policy. Where the investor is a minor, the nomination may be made by the guardian. Yet, Keep in mind Power of Attorney holders cannot make a nomination.

Loan Facility

One of the things you would love about an LIC FD plan is the loan feature. After a period of three months from the date of deposit, investors may take a loan of 75% of the deposit amount. The interest rate for the loan is 2% higher than the applicable FD interest rate.

TDS and Taxation

Interest earned from a LIC FD is added to the investor's total income and taxed as per the income tax slab. If the annual interest is more than 50,000 (1 lakh for senior citizens), then 10% TDS is deducted. Permissible investors can submit Form 15G or Form 15H to DVD TDS, as per the Income Tax rules.

Advance against Security of Deposit

In addition, the LIC Fixed Deposit Plan enables investors to receive an advance against their deposit after three months. Up to 75% of the deposit value can be borrowed, subject to the firm's terms and conditions. This capability will let you enjoy liquidity without having to close your investment, That's why is handy both for short- and long-term deposits, including a LIC Fixed Deposit for 10 Years.

What are the Benefits of LIC FD Scheme 2026?

Here are some benefits of the LIC FD Scheme 2026:

High Security: An LIC FD Plan brings an investment option that is safe and secure, backed by a AAA/Stable CRISIL rating, So making LIC FD plans not only trustworthy but also perfect for investors looking for secure and reliable returns.

Competitive Interest Rates: The LIC Fixed Deposit Plan is an excellent choice as it offers you with competitive and attractive interest rates that will eventually help your savings to get increased steadily throughout the period of investment you select.

Flexible Interest Payouts: You have an option to enjoy monthly or yearly interest payments in the non-cumulative variant under the LIC FD scheme, which is why a LIC Fixed Deposit Monthly Income Plan is also possible.

Additional Benefits for Senior Citizens: Senior citizens, who qualify for the scheme, will get an extra 0.25% p.a. interest on their deposits, which range from 20,000 to 3 crore that can be made in any available tenure.

Easy Deposit Management: Owning a LIC FD policy means that you can enjoy features like auto-renewal and auto-repayment without any manual input, leading to an effortless investment journey.

Electronic Payment Facility: Electronic mode is used to credit the interest payouts as well as the maturity proceeds in case of LIC Fixed Deposit, which yields faster, safer, and more convenient transactions.

Loan Against Deposit: The investor can get a loan equal to 75% of their deposit, which is a great way to get money without having to close your LIC FD before time.

Annual Interest Compounding: When you go for a cumulative one, the interest is compounded on an annual basis, so this can be very advantageous for investments that you plan to hold for a longer period of time, such as a LIC Fixed Deposit for 10 Years.

Who Can Invest in LIC FD Plans?

LIC FD Schemes are open to a wide range of investors:

• Resident individuals (single or joint account)

• Non-Resident Indians (NRIs) — maximum tenure of 3 years

• Minors, through parents or guardians

• Hindu Undivided Families (HUFs)

• Partnership Firms

• Association of Persons

• Co-operative Societies

• Proprietary Concerns

• Trusts

• Others as decided by LIC HFL management from time to time

What Documents are Required to Open an LIC FD?

Note: For joint accounts, each depositor must submit the above documents individually.

How To Buy LIC FD Plan?

The LIC Fixed Deposit Scheme is only available for purchase by LIC Housing. Here are the steps to buy the plan:

Step 1: Go to the official LIC Housing website.

Step 2: Click on Deposits from the Navigation Bar and then click on ‘Sanchay Public Deposit’.

Step 3: Click on ‘Apply Now’

Step 4: Click 'Login' if you already have an account. Or click ‘Register’ if you are a new user. In both cases, you will be required to provide your PAN and a captcha.

Interest accrues from the date the funds are credited to the LIC HFL account.

LIC New FD Scheme 2026– How to Open?

KYC compliance is one of the primary prerequisites for opening the LIC FD Monthly Income Plan. However, you need to submit the following documents to invest in the LIC FD scheme 2026 for the first time. You do not need to open the deposit under a single name, as the company allows joint accounts. In that case, each depositor must submit the documents.

• Duly filled and signed FD application form

• 2 Passport size color photographs

• Copy of the PAN card

• ID Proof (Aadhaar card, Passport, Driving License, etc.)

• Address Proof (Any officially valid card containing an address or a current utility bill)

• Age Proof (All Id proof cards, Birth certificates, School Leaving Board certificates, etc.)

TDS and Taxation on LIC FD Plans

Interest earned from LIC FD plans is fully taxable and added to the investor's total income, taxed as per the applicable income tax slab rate.

Important note for investors: The TDS threshold for LIC HFL FDs is ₹5,000 per annum — significantly lower than the ₹40,000 threshold applicable to bank FDs. This means investors earning more than ₹5,000 in annual interest from LIC FD will have TDS deducted, even if their overall income is below the taxable limit. Filing Form 15G or 15H can prevent this deduction if you qualify.

Final Words - Is LIC HFL FD Safe?

Yes. LIC Housing Finance Ltd. carries a CRISIL AAA/Stable rating, indicating the highest creditworthiness. However, unlike bank FDs, LIC HFL deposits are not covered under DICGC insurance.

LIC FD scheme is a reliable option for conservative investors who rely on banks and post offices to grow their money. Being a subsidiary of the LIC, they carry the legacy of the principal in business ethics and management. Moreover, the LIC FD plan 2026 offers enough flexibility for the depositor’s comfort while earning an attractive interest to meet periodic financial needs.

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