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LIC FD Interest Rates

LIC FD Rates 2020

Last Updated 26th Aug 2020

LIC Housing Finance is one of most reliable FD providers amongst a number of FD providers in the market. LIC Housing Finance FD offers a number of benefits to investors such as higher returns, flexible tenure, lower minimum deposit limit, and loan against FD facility, among others. When it comes to the FD interest rate, the highest rate offered on LIC Housing Finance FD is 6.00%. Latest LIC Housing Finance FD interest rate for senior citizens, on the other hand ranges between 6.15% to 6.25%.

Tenure FD interest rates Senior Citizen FD interest rates
1 year 5.90% 6.15%
1 year 6 months 5.90% 6.15%
2 years 5.90% 6.15%
3 years 6.00% 6.25%
5 years 6.00% 6.25%

LIC Fixed Deposit (FD)

LIC Housing Finance FDs are one the best investment option available for depositors who are looking to invest in a fixed income instrument and earn higher returns than savings account. Key Features of LIC Housing Finance Fixed Deposit are:

  • Deposit Amount: LIC Housing Finance FD can be opened with an amount as a low to up to .
  • FD Tenure: Ranges between 1 year to 5 years.
  • Interest Rate Range: 5.90% p.a. to 6.00% p.a.
  • Senior Citizens FD Rate: 6.15% to 6.25% p.a.
  • Highest Interest Rate: As per today’s rate, LIC Housing Finance’s highest interest rate on FD is 6.00% offered for a tenure of 5 years.
  • Safety of SBI Deposits: LIC Housing Finance is a HFC and hence, its deposits are not covered under insurance. However, deposits of HFC are rated by rating agencies, which give a good understanding of your savings. AAA or AA rated deposits are considered have the highest safety
  • Loan against FD: As per the policy of LIC Housing Finance. To be confirmed at the time of opening a FD.
  • Auto Renewal Facility: Available
  • Nomination Facility: Available
  • Popular FD Schemes:

LIC Housing Finance Best FD Plan

We need to compare tenure wise latest FD rate of LIC Housing Finance to choose the tenure at which it provides the highest interest rate. LIC Housing Finance FD rates are best for the deposits with a tenure of 3 years to 5 years, wherein the current FD rate of interest is 6.00% p.a

If one is looking to invest in long term deposits, LIC Housing Finance FD interest rates with tenure of 5 years to are a good choice with interest rates on deposits with a tenure of at 6.00%. Senior citizens are offered special rates from bank with highest deposit rates of 6.25% p.a. on long term FDs.

Fixed Deposits of LIC Housing Finance have a higher interest rate compared to their saving deposits. Benefits of opening a FD account in LIC Housing Finance are:

  • Interest on deposit is paid only at the time of the maturity
  • Nomination facility available
  • Extra interest of 0.25% to 0.50% payable to the senior citizens
  • Availability of auto renewal facility on the deposit
  • Earn higher returns on the money deposited

FD in LIC Housing Finance – Premature Withdrawal

Premature closure of Term Deposit with LIC Housing Finance is along with the lower interest rate of 2% than the contracted rate. The penal provisions for premature closure on LIC Housing Finance FD are subject to change from time to time and may also vary with deposit schemes.

Loan against Fixed Deposit LIC Housing Finance

LIC Housing Finance offers loan up to 75% against its own deposit. Note that LIC Housing Finance will not give you loan against FD of any other bank. LIC Housing Finance offers Loan against FD at the rate of 6.9% to 7%

Illustration - Mr. Rahul has opened a fixed deposit of ₹ 1,00,000 for 2 years in LIC Housing Finance. The borrower later decided to take loan against his FD. The bank has approved a credit limit of 75% against his FD at 10% interest rate. Now, if the borrower draws ₹ 75,000 on the first of the month and then repays the money on the 1st of next month, then he is supposed to pay the interest on ₹ 75,000 availed for 1 month only. The amount he repays after 1 month is ₹ 75,612. So, the interest charged on the loan taken is ₹ 612.

FD Account Opening Process at LIC Housing Finance

To open a Fixed Deposit account in LIC Housing Finance, you can visit the official website and login to your account. Choose Fixed Deposit option from the menu and select the Type of FD you want to open and proceed. After this, you have to fill the deposit amount and select ‘Senior Citizen’ option if you are above 60. You have to choose the tenure of deposit and interest payout frequency. Click on Submit to open the LIC Housing Finance FD after reading the terms and conditions.

Nomination Facility on LIC Housing Finance FD

LIC Housing Finance offers nomination facility on Fixed Deposit to claim the amount in case of the death of the depositor. An individual, single or joint account holders can appoint a nominee. Only one person can be appointed as nominee. You can fill nominee details while opening a LIC Housing Finance fixed deposit. Nominee has to submit his/her identification proof at the time of claim.

FAQs

What is the highest FD rate for LIC Housing Finance?

You can earn a maximum interest of 6.00% on LIC Housing Finance fixed deposit.

Are there any special rates for senior citizens FD of LIC Housing Finance?

Yes, senior citizens get a higher rate on their deposits compared to FD rates. The rate of regular FD are in the range of 5.90% to 6.00%. Compared to this, the rate of senior citizens FD are in the range of 6.15% to 6.25%.

Can I deposit additional amount in my FD account?

No, you cannot deposit any additional amount in your existing FD account as you are allowed to deposit only once at the time of opening the account. If you want to invest any additional amount in FD, you are required to open a new FD account.

Who is eligible for opening an FD account in LIC Housing Finance?

All resident individuals, HUFs, NRIs, Firms including minors are eligible to open a fixed deposit account.

Is it possible to change the tenure of my existing fixed deposit account with LIC Housing Finance?

No, it is not possible to alter the tenure selected for the fixed deposit account once the account is opened. However, you may close your existing fixed deposit account and can open a new account with a desired tenure of your choice.

What are the implications of opening an FD bank account without having PAN?

Following are the implications for the customers opening an FD account with LIC Housing Finance without their PAN card

  • TDS will be deducted at the rate of 20% as against 10% under section 206AA
  • NO TDS credit from the Income Tax department
  • NO TDS certificate will be issued
  • Form 15G/H and other exemption certificates will be invalid and penal TDS will apply

What is the current interest rate on FD in LIC Housing Finance?

Current interest for FD in LIC Housing Finance ranges between 5.90% - 6.00%.

Can a customer open a FD account online in LIC Housing Finance?

Yes, you can submit your application for opening a FD account on the website of LIC Housing Finance. After submitting the application, you will be contacted by the bank’s representative for further process which includes filling an application process and submitting KYC documents.

In how many years FD will double in LIC Housing Finance?

The interest rate on FD depends upon the tenure you choose. To know the time period in which your FD amount will get doubled, you need to divide 72 with the 6.00%. For LIC Housing Finance FD the number of years in which your FD will get doubled is; 72/6.00 = 12


LIC News - Sep 2020
  • 2018-09-06 : LIC HFL revises FD rates
    LIC Housing Finance Ltd (LIC HFL) has revised its FD rates for broadly all maturities. These rates range from 7.55% to 7.85% as the tenure goes up to 5 years. The revised rates would be effective from 01st September, 2018.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More