FD Scheme
The Life Insurance Corporation of India (LIC), a trusted name in the financial services sector, has introduced a new Fixed Deposit (FD) scheme that offers attractive returns for investors looking for a secure income option. The scheme is designed for individuals who prefer a stable monthly return on a one-time investment, combining safety with guaranteed payouts.
Overview of the LIC FD Scheme
LIC’s newly launched FD scheme allows investors to deposit a lump sum of ₹1 lakh and receive monthly returns of approximately ₹6,500. This structured plan is ideal for retired individuals, pensioners, or anyone looking to earn regular income without taking market risks. The scheme works similarly to a fixed deposit but offers slightly higher returns, potentially linked to LIC’s investment portfolio and internal return mechanisms.
Key Features of the Scheme
- Minimum Investment: ₹1,00,000
The scheme requires a one-time investment of at least ₹1 lakh. Higher investments are allowed, and monthly returns scale accordingly. - Monthly Income: ₹6,500 per ₹1 lakh invested
The highlight of the plan is the fixed monthly income it offers, which translates to ₹78,000 annually for a ₹1 lakh investment. - Tenure and Lock-in:
While exact tenure options vary, most plans under this scheme come with a lock-in period, likely ranging from 3 to 10 years. Early withdrawal may attract penalties or reduce the return rate. - Risk-Free Returns:
As LIC is backed by the Government of India, the scheme offers a high level of trust and security. Unlike mutual funds or stocks, your principal is protected. - Who Can Invest:
Indian residents aged 18 and above are eligible to invest. Senior citizens may get slightly better returns or preferential terms.
How It Works
When you invest ₹1 lakh in the scheme, LIC invests your capital in safe, government-backed or highly rated instruments. The returns generated are then redistributed to you in the form of monthly payouts. LIC guarantees the monthly return, which ensures stability in your cash flow, ideal for those managing household expenses or looking to supplement their retirement income.
Tax Implications
The returns earned through this scheme may be subject to taxation under the Income Tax Act. Investors should consult with a financial advisor to understand the exact implications, as TDS (Tax Deducted at Source) may be applicable on the interest earned.
How to Apply
You can apply for the LIC FD scheme by visiting the nearest LIC branch or through authorized LIC agents. Online application options may also be available on LIC’s official website in the near future. Ensure you carry valid KYC documents like PAN, Aadhaar, and address proof during the application process.
LIC’s new FD scheme provides a compelling option for conservative investors who seek assured monthly income with zero exposure to market volatility. With a return of ₹6,500 per month on an investment of ₹1 lakh, it presents a highly attractive deal, especially in the current economic climate where many banks offer lower interest rates.
As with any financial product, it’s wise to read the fine print and consult with a licensed advisor before making a decision. But for those looking for safety, reliability, and regular income, LIC’s latest offering could be the right fit.
