Planning for retirement has become a serious concern for many people today. While regular income continues during working years, financial security after retirement is what truly brings peace of mind. No one wants to depend on others during old age. This is why investors are increasingly looking for safe schemes that offer guaranteed monthly income. Keeping this need in mind, LIC has introduced a new FD-like investment scheme starting from February 1, designed for people who want safety along with steady monthly earnings.
This LIC New FD Scheme is being seen as a reliable option for conservative investors who prefer stable returns without market risk.
What Is LIC’s New FD-Like Scheme and Why Is It Important
LIC’s new FD-style plan is aimed at individuals who want guaranteed returns and predictable monthly income. Unlike mutual funds or stock-linked products, this scheme does not depend on market performance. The returns are fixed, making it suitable for retirees, senior citizens, and risk-averse investors. LIC’s strong reputation and government backing add an extra layer of trust, which is why many people consider this plan a safe long-term financial choice.
How Much Investment Gives Monthly Income
Under this scheme, the minimum investment starts at ₹1 lakh, while the maximum investment limit goes up to ₹15 lakh. According to current projections, investing ₹1 lakh can generate a monthly income of around ₹15,000 to ₹15,500, depending on the chosen payout structure. For higher investment amounts, the monthly income increases proportionately. This makes the scheme attractive for those who want a regular income stream without touching their principal amount frequently.
Interest Rate and Investment Tenure Explained
The interest rate offered under this LIC New FD Scheme is currently around 7.5%, which is competitive compared to many traditional bank fixed deposits. Investors can choose an investment tenure ranging between 5 to 10 years, depending on their financial goals. Longer tenures generally offer better stability and income planning benefits. The scheme officially becomes available for new investments from February 1, making early planning important.
Early Withdrawal and Loan Facility Details
The scheme comes with a lock-in period of three years. After completing this period, investors may withdraw funds if required, although early withdrawal conditions and deductions may apply. LIC also allows investors to take a loan against the FD after a few months of holding the investment. This feature is useful during emergencies, allowing access to funds without breaking the investment entirely.
Tax Rules You Should Know Before Investing
The monthly income received from this LIC FD-like scheme is taxable as per the investor’s income tax slab. However, if the investment qualifies under specific long-term options, tax benefits under Section 80C may be available. Since tax treatment can vary based on individual financial situations, consulting a tax advisor before investing is always recommended.
Who Should Consider This LIC FD Scheme
This scheme is especially suitable for senior citizens, retirees, and individuals seeking stable monthly income with minimal risk. It offers financial predictability, capital safety, and peace of mind. For investors who prefer guaranteed returns over high-risk growth, this LIC plan can serve as a dependable income source after retirement.
Disclaimer
This article is written for general informational purposes only. The LIC New FD Scheme details, interest rates, monthly income figures, eligibility criteria, and tax benefits may change based on official LIC notifications issued from time to time. Returns mentioned are indicative and not guaranteed. Readers are strongly advised to verify scheme details from LIC’s official website or authorized LIC agents before investing. The author and publisher are not responsible for financial decisions taken based on this content.