LIC Senior Citizen FD Plan 2025: Interest Rate, Eligibility, and Maturity Explained 🌟
For many senior citizens, securing a stable and reliable income stream during retirement is a top priority. Fixed Deposits (FDs) are a popular choice due to their guaranteed returns and capital safety. The LIC Senior Citizen FD Plan, offered by LIC Housing Finance Limited (LIC HFL), stands out with its preferential interest rates tailored for retirees. This guide explores the LIC Senior Citizen FD Plan for 2025, detailing its interest rates, eligibility, maturity options, and more to help seniors make informed financial decisions. 🧑🦳
📈 Want to know your returns instantly?
Try our Fixed Deposit Calculator – Fast, Free & Simple!
Understanding the LIC Senior Citizen FD Plan: Key Features 📋
The LIC Senior Citizen FD Plan, part of the ‘Sanchay Public Deposit Scheme,’ is designed to provide enhanced returns for senior citizens. With attractive interest rates and flexible options, it’s an ideal choice for retirement planning. 🔍
Interest Rates for Senior Citizens 💰
As of June 19, 2025, LIC Housing Finance offers competitive interest rates, with an additional 0.25% per annum for senior citizens on deposits from ₹20,000 to ₹3 Crores. Rates vary by tenure and deposit amount, as shown below:
| Term | Up to ₹3 Crores | Above ₹3 Crores |
|---|---|---|
| 1 Year | 6.70% | 6.60% |
| 15 Months | 6.75% | 6.65% |
| 18 Months | 6.75% | 6.65% |
| 2 Years | 6.80% | 6.80% |
| 3 Years | 6.85% | 6.85% |
| 5 Years | 6.90% | 6.90% |
📈 Want to know your returns instantly?
Try our Fixed Deposit Calculator – Fast, Free & Simple!
Interest Rate Bar Graph 📊
1 Year
15 Months
18 Months
2 Years
3 Years
5 Years
Eligibility Criteria 🧾
To qualify for the LIC Senior Citizen FD Plan, you must be 60 years or older at the time of deposit. The scheme also accepts investments from Resident Individuals, Non-Resident Individuals, Minors (via guardians), HUFs, Partnership Firms, Co-operative Societies, and more. The minimum deposit is ₹20,000, with additional investments in multiples of ₹1,000. ✅
Maturity and Payout Options 🔄
The plan offers tenures from 1 to 5 years. Investors can choose between Cumulative (interest compounded annually, paid at maturity) or Non-Cumulative (monthly or yearly interest payouts) schemes. At maturity, the principal and interest are credited to your bank account. An auto-renewal option is available for seamless reinvestment at the prevailing rate. 🔄
📈 Want to know your returns instantly?
Try our Fixed Deposit Calculator – Fast, Free & Simple!
Real-Life Case Study: Mrs. Sharma’s Retirement Security 🏡
Mrs. Sharma, a 68-year-old retired teacher from Mumbai, invested ₹10 lakhs in the LIC Senior Citizen FD Plan for a 5-year cumulative term at 6.90%. Her investment will grow significantly, providing a lump sum at maturity for her needs, such as medical expenses or travel. Alternatively, the non-cumulative option could have provided monthly payouts to cover expenses, showcasing the plan’s flexibility. 😊
Frequently Asked Questions (FAQs) ❓
What is the LIC Senior Citizen FD Plan? 🧐
It’s a fixed deposit scheme by LIC Housing Finance Limited offering preferential rates for seniors.
What are the current interest rates? 📈
As of June 19, 2025, rates go up to 6.90% p.a., including a 0.25% senior citizen benefit.
Who is eligible? 👴
Individuals aged 60+ and entities like HUFs, NRIs, and firms can invest.
What’s the minimum deposit amount? 💵
The minimum deposit is ₹20,000.
Can I invest over ₹3 Crores? 💰
Yes, but interest rates may differ slightly for higher amounts.
What tenures are available? ⏳
Tenures range from 1 to 5 years.
Is there a cumulative option? 📦
Yes, interest is compounded annually and paid at maturity.
Can I get regular interest payouts? 💸
Yes, the Non-Cumulative option offers monthly or yearly payouts.
How is interest calculated? 🧮
Based on tenure and deposit amount, with an extra 0.25% for seniors.
What happens at maturity? 🏁
Principal and interest are credited to your bank account.
Can I auto-renew my FD? 🔄
Yes, LIC HFL offers an auto-renewal option.
Is the plan safe? 🔒
It’s rated AAA/Stable by CRISIL, indicating high safety.
Are there tax benefits? 🧾
Interest is taxable based on income tax slabs; TDS applies if limits are exceeded.
Can NRIs invest? 🌍
Yes, NRIs are eligible to invest.
What documents are needed? 📜
KYC documents like identity, address, and age proof are required.
Can I withdraw early? 🚪
Premature withdrawals are at LIC HFL’s discretion, per regulations.
How does it compare to other FD schemes? ⚖️
It offers competitive rates and LIC HFL’s trusted backing.
Where can I find official details? 🌐
Visit the LIC Housing Finance Limited website under the Sanchay Public Deposit Scheme.
Does it offer monthly income? 💳
Yes, with the Non-Cumulative scheme, monthly payouts are available.
Is it suitable for retirement planning? 🏖️
Yes, its safety, rates, and payout options make it ideal for retirees.