LIC Housing Finance (LIC HFL) Fixed Deposit rates currently range from 6.50% to 6.90% p.a. for regular investors, while senior citizens can earn up to 7.15% p.a. on deposits below ₹3 Crores.
The highest returns are available on the 5-Year Sanchay Deposit, while investors looking for a shorter commitment period can consider the 15-Month tenure offering 6.75% p.a..
Below is the latest LIC HFL Sanchay Deposit Interest Rate Table.
| Tenure | Regular | Senior Citizen |
|---|---|---|
| Cumulative / Yearly Payout Deposits | ||
| 1 Year | 6.70% | 6.95% |
| 15 Months | 6.75% | 7.00% |
| 18 Months | 6.75% | 7.00% |
| 2 Years | 6.80% | 7.05% |
| 3 Years | 6.85% | 7.10% |
| 5 Years (Highest) | 6.90% | 7.15% |
| Monthly Income Deposits | ||
| 1 Year | 6.50% | 6.75% |
| 15 Months | 6.55% | 6.80% |
| 18 Months | 6.55% | 6.80% |
| 2 Years | 6.60% | 6.85% |
| 3 Years | 6.65% | 6.90% |
| 5 Years | 6.70% | 6.95% |
📌 Important LIC HFL FD Points
- The highest FD rate is available on the 5-Year tenure
- Senior citizens receive an additional 0.25% interest benefit
- LIC HFL FDs carry a strong CRISIL AAA/Stable credit rating.
- These deposits are issued by an NBFC and are not covered by DICGC insurance
- TDS rules start from a lower threshold of around ₹5,000 annual interest
💡 LIC HFL Yield Tip: The 15-Month deposit offers 6.75% p.a. with a shorter lock-in than a 2-Year FD, making it a good option for investors who want strong returns without blocking money for too long.
📌 Quick Insight: Unlike bank FDs, LIC Housing Finance deposits are corporate deposits. While they carry a strong credit rating, they do not receive the ₹5 Lakh DICGC insurance protection available on bank deposits.
⚠ Important: The additional senior citizen interest benefit applies only to eligible individual investors and is generally not available for corporate, trust, partnership, or institutional deposits.
Read Below: Core Features • Eligibility Criteria • TDS Rules • Premature Withdrawal • Online Application Process
1. Key Features of LIC HFL Sanchay Deposit
- Minimum Investment – You need at least ₹20,000 to open a Cumulative or Annual Interest Deposit. For the Monthly Interest option, the minimum investment is ₹2 lakh.
- Interest Compounding – In the Cumulative plan, the interest is added back to the deposit once every year, usually on 31 March.
- No Maximum Limit – There is no upper investment limit. Whether you want to invest ₹20,000 or ₹20 lakh, the same scheme can be used.
- Multiple Payout Options – Investors can choose between Monthly, Annual, or Cumulative interest options depending on their income needs.
- Suitable for Different Investors – The scheme is available for individuals, NRIs, trusts, HUFs, and other eligible categories under LIC HFL rules.
📌 Insight: LIC HFL Sanchay Deposits are offered by LIC Housing Finance Ltd., which is an NBFC and not a bank. So the deposit works differently from a traditional bank FD, even though the investment process feels quite similar.
2. Types of LIC HFL Sanchay Fixed Deposits
LIC Housing Finance offers different Sanchay Deposit options for different types of investors. While the basic concept remains the same, each scheme is meant for a specific category of customers.
1. Sanchay Public Deposit
This is the most popular LIC FD scheme and is mainly meant for individual investors.
- Available for resident individuals
- Minors can invest through parents or guardians
- Partnership firms and eligible trusts can also invest
- Usually offers the best retail FD rates among LIC deposit schemes
- It is for 1 to 5 years only (NRIs are restricted to 3 years). There is no 10-year or 15-year LIC Fixed Deposit plan.
- You can get up to 75% of the deposit amount, which can be borrowed after a 3-month lock-in period.
2. Corporate Deposit Scheme
This scheme is designed for organizations rather than individual investors.
- Available for companies and institutions
- Suitable for managing surplus business funds
- Used by corporate bodies looking for fixed returns on idle cash
3. Sanchay Green Deposit
This is a special deposit launched under the RBI’s Green Deposit framework. Available for resident individuals.
- Purpose: Your money is used only for green and environmentally friendly projects.
- Security: CRISIL AAA rated, which means high safety for interest and principal.
- Minimum Deposit: ₹20,000 for yearly/cumulative FD, ₹2,00,000 for monthly income FD.
- Tenure: Options available for 1, 1.5, 2, 3, and 5 years.
- Interest Payout: Choose cumulative (paid at the end) or non-cumulative (monthly or yearly).
- Supports areas such as renewable energy, clean transport, and other environmentally friendly initiatives
📌 Tip: Most retail investors choose the Sanchay Public Deposit because it is simple, widely available, and designed specifically for individual savers looking for fixed returns.
3. Eligibility Criteria: Who Can Open an Account?
- Resident Indian Individuals – Any resident Indian adult can open a deposit account in their own name.
- Joint Account Facility – You can also open a joint account with family members. Up to 3 people can be added in a single deposit account.
- Minor Accounts – Parents or legal guardians can open a deposit on behalf of a minor child.
Who Cannot Invest?
The following categories are generally not eligible under the regular resident deposit scheme:
- Non-Resident Indians (NRIs)
- Foreign Nationals
4. How to Open an LIC HFL Sanchay Deposit
You can open a deposit either online or by visiting a branch.
Method 1: Apply Online
If you prefer a paperless process, you can complete most formalities online.
- Visit the LIC HFL Sanchay Deposit portal.
- Enter your mobile number and verify it using OTP.
- Select the deposit amount and tenure.
- Upload your Aadhaar Card and PAN Card for KYC verification.
- Make the payment through Net Banking, UPI, or other available options.
- After successful payment, the digital deposit receipt will be generated.
Method 2: Visit the Branch
Many investors still prefer visiting the branch, especially when investing a larger amount.
- Visit the nearest LIC Housing Finance branch.
- Collect the Sanchay Deposit application form.
- Fill in your personal and banking details.
- Attach self-attested copies of:
- Aadhaar Card
- PAN Card
- Passport-size Photograph
- If applying as a senior citizen, carry valid age proof.
- Submit a cheque in favour of LIC Housing Finance Ltd.
- After verification, the deposit receipt will be issued.
📌 Practical Point: If you are investing a large amount or opening the deposit for the first time, visiting the branch can be helpful. The staff can explain payout options, nomination rules, and maturity procedures before you invest.
5. Tax Rules for LIC HFL Sanchay Deposits
1. Interest is Taxable
The interest earned from an LIC Housing Finance deposit is fully taxable. It must be reported under Income from Other Sources while filing your Income Tax Return.
2. TDS Rule
LIC Housing Finance may deduct 10% TDS if the total interest earned during the financial year crosses ₹5,000 and PAN details are available.
3. Form 15G / Form 15H Benefit
If your total income is below the taxable limit, you can submit:
- Form 15G (for eligible individuals)
- Form 15H (for senior citizens)
This can help prevent TDS from being deducted from your interest income.
📌 Example: Suppose Anita earns ₹12,000 as interest from her LIC Housing FD this year. Because this breaks past the corporate ₹5,000 line, the company automatically holds 10% TDS (₹1,200) before releasing payments. If she submits a valid Form 15G beforehand, she receives the full ₹12,000 without automatic cuts.
6. LIC Housing Finance FD vs Other Popular FD Options
Before investing, many people compare LIC Housing Finance FD rates with bank FDs and government-backed schemes.
| Institution | Regular Rate | Senior Citizen Rate | Best Tenure |
|---|---|---|---|
| LIC Housing Finance FD | 6.90% p.a. | 7.15% p.a. | 5 Years |
| Post Office Time Deposit | 7.50% p.a. | 7.50% p.a. | 5 Years |
| State Bank of India (SBI) | 7.10% p.a. | 7.60% p.a. | 400 Days |
| Federal Bank | 7.40% p.a. | 7.90% p.a. | 400 Days |
| Utkarsh Small Finance Bank | 8.10% p.a. | 8.25% p.a. | 666 Days |
📌 Quick Fact: LIC Housing Finance FD may not offer the highest interest rate in the market, but some investors consider it because of the LIC brand name and fixed-return structure. If your main goal is maximum returns, some small finance banks currently offer higher FD rates.
7. LIC Housing Finance FD Calculator
An LIC Housing Finance FD Calculator helps you estimate how much money you may receive at maturity based on your deposit amount, tenure, and interest rate.
For cumulative deposits, the interest is added back to the deposit every year, helping your money grow over time.
Quick Example (₹1 Lakh Investment for 5 Years)
| Investor Type | Interest Rate | Interest Earned | Maturity Amount |
|---|---|---|---|
| Regular Citizen | 6.90% p.a. | ₹39,600 | ₹1,39,600 |
| Senior Citizen | 7.15% p.a. | ₹41,250 | ₹1,41,250 |
📌 Example: Suppose Ramesh invests ₹1 lakh in a 5-year LIC HFL cumulative deposit. If he qualifies as a senior citizen, he may receive around ₹1,650 more at maturity compared to a regular investor because of the higher interest rate offered to seniors.
Read – Muthoot Finance Fixed Deposit Rates (2026)
Frequently Asked Questions
Is the LIC Fixed Deposit Monthly Income really paid every month?
Yes. In most LIC HFL branches, monthly interest is credited on the 1st of every month via NACH. March interest comes on 31st March. Delays usually happen only during bank holidays.
Is there an LIC fixed deposit calculator available?
LIC HFL does not provide a full public calculator. Branch staff usually calculate manually. A simple rule: ₹1 lakh gives ~₹550–₹600 monthly interest, before tax, depending on tenure and rates.
Is there any LIC fixed deposit for 10 years?
No. LIC Fixed Deposits through LIC Housing Finance are available for a maximum 5 years only. Any 10-year LIC product you hear about is an insurance or pension plan, not a fixed deposit.
Is there any LIC fixed deposit for 15 years?
No. LIC Housing Finance does not offer 15-year fixed deposits. Such searches usually confuse LIC insurance policies with FDs. All LIC FDs are limited to 1–5 years only.
Will tax be deducted every month from my interest?
No. TDS is calculated yearly, not monthly. If total annual interest crosses ₹40,000 (₹50,000 for seniors), 10% TDS applies. Actual tax depends on your slab.
Is a LIC Fixed Deposit as safe as a bank FD?
It is AAA-rated, but it is a corporate FD, not a bank FD. There is no DICGC insurance. Safety depends on LIC HFL’s balance sheet, not government guarantee.
When will LIC fixed deposit money become double?
LIC fixed deposit money does not double fast. Normally, it takes around 10–11 years to become double because the interest rate is about 6.5%–7%. It is safe, but returns are slow.
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