LIC FD Scheme 2026

As well as providing housing finance, LIC HLF also offers loans for personal, professional, or business purposes; these include secured property loans and financing for builders and professionals throughout India.

LIC FD scheme 2026 details– Information at a Glance:

LIC FD Scheme Key Takeaways

• LIC Fixed Deposit interest rates are offered at around 6.70% - 6.90%, a minimum deposit of Rs 20,000, and flexible tenure options of 1 to 5 years.

• Investors can choose cumulative FDs for compounded returns or non-cumulative FDs for monthly/quarterly payouts. The LIC Fixed Deposit Calculator helps estimate returns over time.

• LIC FDs are suitable for conservative investors, backed by LIC’s strong reputation, AAA rating from CRISIL, and a reliable record of timely payments.

• Premature withdrawal attracts penalties. No interest is paid if withdrawn within 3 months, while withdrawals after 6 months earn interest at 1% below the applicable rate.

• With the LIC fixed deposit plan loan facility, you can borrow a loan of up to 75% of the deposit amount in case of an emergency.

What is the LIC FD Scheme 2026?

LIC Housing Finance Ltd., a subsidiary of LIC of India, introduced the LIC FD Scheme, a reliable fixed deposit plan that provides investors with a stable, guaranteed return through a secure fixed deposit structure. The LIC FD plan 2026 is a fixed-income product that assures steady returns with interest rates ranging from 6.70% to 7.75% per annum for tenures of 1 to 5 years. It is rated AAA/stable by CRISIL, ensuring high safety. Senior citizens receive an additional 0.25% p.a of interest, and loans up to 75% of the deposit amount are available.
The LIC fixed deposit plan by LIC HFL can be purchased by resident and non-resident Indians, minors (through guardians), HUFs, businesses, societies, and trusts. This LIC FD scheme 2026 is easy to manage and gives you access to your money when you need it.

LIC Fixed Deposit Interest Rates

The primary attraction of any fixed deposit is the interest rate offered on the investment. However, the Sanchay LIC FD Scheme 2026 is suitable for individuals and investors who draw their interest periodically. In this particular case, it is monthly. Therefore, the LICHFL offers a non-cumulative deposit scheme where you can withdraw the interest either monthly or annually, according to your convenience, to meet your periodic fund requirement. Accordingly, the following grids depict the current LIC FD interest rates in the Monthly Income Plan.

LIC Fixed Deposit Interest Rates effective from June 2025

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

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 are more.

Features of LIC FD Plan 2026

Auto Repayment

On maturity, the amount is automatically credited to your registered bank account. For non-cumulative deposits, the maturity amount equals the principal since interest is paid out periodically.

Renewal

If auto-renewal is selected, the principal is reinvested for the same tenure. The renewed deposit earns the interest rate prevailing on the renewal date.

Premature Withdrawal

Deposits can be closed before maturity, subject to penalties:

• Up to 3 months: No interest.

• 3–6 months: 3% p.a. for individuals; nil for others.

• Above 6 months: Interest is 1% lower than the contracted rate.

Nomination

Available only for individual depositors. For minors, the guardian can nominate. Power of Attorney holders cannot make nominations.

Loan Facility

Loans can be availed after 3 months for up to 75% of the deposit amount at 2% above the FD interest rate.

TDS and Taxation

TDS of 10% applies if annual interest exceeds ₹50,000 (₹1 lakh for senior citizens). Form 15G/15H can help avoid TDS if eligible. Interest income is taxable as per your slab.

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.

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.)

What are the Benefits of LIC FD Scheme 2026?

Here are some benefits of the LIC FD Scheme 2026:

• Steady Income Each Month: The LIC FD Scheme 2026 gives you a fixed sum each month depending on the amount deposited, the duration, and the interest rate, hence you get a steady income without disturbing the principal amount.

• Higher Rates of Interest: The LIC fixed deposit scheme offers higher interest rates than usual, enabling investors to secure guaranteed returns.

• Longevity of Investment: You can choose a period of 1 to 5 years, offering you flexibility based on your savings needs.

• Senior Citizen Benefits: Senior citizens receive an additional interest benefit, making the LIC 2026 deposit plan a dependable option for a retirement plan.

• Tax Savings: Interest is taxed according to your slab, and 5-year FDs can get a tax deduction under Section 80C of up to 1.5 lakh.

• Liquidity and Access to Emergencies: You can make an early withdrawal when the condition is met; also, loans or overdrafts can be taken without liquidating the LIC Fixed Deposit scheme.

Final Words

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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