LIC FD Scheme 2026

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.
Investors can use this LIC fixed deposit plan, including residents and non-residents, 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. It has features like monthly and yearly interest payments, automatic renewal, electronic payments, and loans against deposits of up to 75% of the amount.

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.

LIC FD scheme 2026 details– Information at a Glance:

LIC FD Scheme Key Takeaways

• LIC Housing Finance FDs are a safe option for your funds. 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.

• Based on the investor's income requirements, they can either opt for a cumulative fixed deposit, where interest is compounded, or a non-cumulative fixed deposit, where income can be received monthly/quarterly by way of free-standing interest payouts. Investors can use the LIC Fixed Deposit Calculator for a better understanding of their deposit’s performance over time.

• LIC FDs are relatively safe and reliable for conservative investors, as they are backed by LIC's strong credibility, hold an AAA rating from CRISIL, and have a stable track record of timely payment of interest/principal.

Features of LIC FD Plan 2026

We have discussed all the salient features that make the LIC FD Plan 2026 an attractive proposition. Yet, several features need elaboration. Accordingly, let us consider them one by one.  

1. Auto Repayment and Renewal:

   Repayment: Your LIC FD Plan 2026 becomes due for repayment upon maturity, depending on the tenure. Thus, the maturity amount gets electronically transferred to your bank account mentioned in the opening application form. It is essential to note that the maturity value of the non-cumulative deposit in the LIC FD plan is the same as the principal as you have already drawn the accrued interest.

   Renewal:  If you have opted for the auto-renewal option while placing the deposit in LIC FD Plan 2026, the principal gets renewed further for the identical deposit tenure. It is essential to note that the renewed fixed deposit bears the same features as the original. However, the LIC fixed deposit interest rate applicable is effective on the maturity/ renewal date.

2. Premature Withdrawal:

   You can request premature closure of your LIC FD Plan 2026 deposit account any time during the tenure to meet financial emergencies. However, the LIC management reserves the right to approve or reject the application at their sole discretion, subject to RBI’s Non-Banking Financial Company – Housing Finance Company Directions, 2021. The grid below depicts the interest impact:

   Completed Deposit Tenure	Applicable  Interest Rate per annum
   Less than three months are subject to lock-in rules	Nil
   From 3 months to 6 months	3% per annum for the individual depositors and nil for others
   From 6 months until the maturity date	Interest is 1% less than the original rate. If no rate applies, 2% less than the lowest available rate.

3. Nomination: 

   The nomination facility in the LIC New FD Scheme 2026 is available only to individual depositors, either singly or jointly. If the deposit is in a minor’s name, the nomination is registered by the person lawfully entitled to act on the minor’s behalf. It is important to note that a Power of Attorney holder or any representative cannot nominate in the LIC FD Monthly Income Plan. The nominee has the right to receive any payment for the deposit which constitutes a total discharge of liability to LICHFL.

4. KYC Compliance: 

   It is compulsory under the RBI's Non-Banking Financial Company – Housing Finance Company Directions, 2021, and the Prevention of Money Laundering Rules, 2002. Accordingly, you must submit the following documents with the deposit application form.

   • Latest color photograph

   • A self-attested copy of the PAN card

   • A self-attested copy of identity proof

   • A self-attested copy of the address proof

   • Duly filled and signed KYC form. 

   If the compliance exists with a previous deposit and the particulars are unchanged, you can mention the folio number to avoid duplication.

5. Loan Facility:

   You can apply for a loan against the LIC New FD Scheme 2026 under the housing finance vertical. However, you must comply with the following to avail of the loan.

   • You can apply for the loan after three months from the deposit date

   • The approved loan amount is a maximum of 75% of the deposit

   • The applicable interest rate is 2% per annum above the contracted FD interest rate

   • You must repay the loan in a lump sum or adjust it against the maturity value

6. TDS and Taxation:

   When your interest income is more than Rs 50,000 (Rs 1,00,000 for senior citizens), TDS of 10% is deducted.
   Exemption from TDS: If you submit Form 15G or Form 15H and your income is below the taxable limit, you can avoid TDS deduction.
   Tax on Interest: Interest is included in your income and taxed according to your slab.
   Tax Benefit: The 5-year FD qualifies for tax deductions under Section 80C (up to 1. 5 lakh).

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.) 

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

Interest Payment:

1. Annual Option: 

   Electronic transfer or Interest warrant as desired by the depositor after TDS adjustment

   The interest is paid on 31 March every year

   Interest is compounded annually for cumulative deposit

2. Monthly Option:

   Only through electronic transfer after TDS adjustment

   Interest paid on the 1st day of the month and on 31 March

• Senior citizens enjoy an additional 0.25% per annum interest over the card rate.

• You can deposit up to Rs. 20 Cr from 1st to 15th and 16th to the last date of the month at the applicable card rate.

• However, if the deposit exceeds Rs. 20 Cr in the defined periods, the applicable interest rate is above Rs. 20 Cr. 

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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