The Life Insurance Corporation of India (LIC) is widely known for its insurance services, but many people are not aware that LIC also provides safe and high-return investment options. One such product is the LIC Corporate Fixed Deposit, operated through LIC Housing Finance Limited (LIC HFL). This FD scheme is designed for investors who prefer guaranteed returns and secure investment avenues.
Below is the complete, original explanation of LIC's Fixed Deposit Scheme-its features, interest rates, eligibility, benefits, and how you can invest.
The LIC Corporate Fixed Deposit is a deposit programme offered by LIC Housing Finance Ltd (LIC HFL). It works like a traditional fixed deposit but provides:
Safer returns backed by a reputed financial institution
Attractive interest rates
Monthly interest payout options for regular income
Minimum Deposit: ₹1,00,000 - ₹1,50,000 (depends on plan) Maximum Deposit: No limit Tenure Options: 12 months to 5 years
Managed by LIC Housing Finance Limited (LIC HFL)
Current interest rates range between 7.25% and 7.75%
Senior citizens receive an extra 0.25% interest
Offers better returns than many regular bank FDs
Various duration options from 1 year up to 5 years
Option to receive interest monthly, quarterly, or annually
If you invest ₹15,00,000 at a rate of 7.8%, you receive:
₹9,750 per month as interest
This makes the scheme suitable for retirees or people who want steady monthly earnings.
Minimum Investment: ₹1,00,000 to ₹1,50,000
Maximum Investment: No upper cap
FD Tenure: 1 to 5 years
A 5-year FD under LIC HFL qualifies for Section 80C tax deduction (up to ₹1.5 lakh).
If your annual interest income is below ₹40,000, you can submit Form 15G/15H to avoid TDS.
PAN Card
Identity Proof (Aadhaar / Voter ID / Passport)
Address Proof
Passport-size photo
Bank account details / cancelled cheque
You can invest by visiting the nearest LIC Housing Finance (LIC HFL) office:
Collect and fill out the Fixed Deposit application form
Attach necessary documents
Make payment via cheque or demand draft
LIC HFL will issue your FD Receipt/Certificate
You can take a loan against your FD:
Loan available after 6 months of deposit
Loan amount is based on the value of the FD
Allowed after 3 months of opening the FD
If withdrawn before 6 months → No interest is paid
After 6 months → Reduced interest rate may apply
If withdrawn before maturity, penalties or rate adjustments apply