The Life Insurance Corporation of India (LIC), one of the country’s most trusted financial institutions, has introduced its New FD Scheme 2026, designed to provide both safety and attractive returns for investors. At a time when people are looking for stable investment options amid fluctuating market conditions, this new LIC fixed deposit plan comes as a reliable choice, combining guaranteed growth with flexible tenures.
Overview of LIC’s New FD Scheme
The LIC New FD Scheme 2026 aims to encourage disciplined savings among individuals while offering better interest rates than traditional bank FDs. It is tailored for investors seeking long-term financial security without the risks associated with market-linked products.
The scheme is available for both individuals and senior citizens, offering varying benefits and higher interest rates for senior citizens.
Interest Rates and Tenure Options
The new FD plan from LIC offers competitive interest rates ranging between 7.2% and 8.1% per annum, depending on the investment duration and customer category.
Tenure options include 1 year, 3 years, 5 years, and 10 years, allowing investors to choose according to their financial goals. Senior citizens get an additional 0.5% interest rate over the standard rate, making it one of the most rewarding schemes for retirees.
Interest can be received either monthly, quarterly, or annually based on the investor’s preference, or reinvested for cumulative returns at maturity.
Key Features of the Scheme
- Minimum Deposit: ₹10,000
- Maximum Deposit: No upper limit
- Lock-in Period: 6 months
- Premature Withdrawal: Allowed after 6 months with nominal penalty
- Loan Facility: Up to 90% of FD value available as a secured loan
- Nomination Option: Available for all account holders
The scheme can be opened through any LIC branch, authorized agent, or online through the official LIC portal.
Benefits of Investing in LIC FD 2026
- Guaranteed Returns: Being a government-backed corporation, LIC ensures full safety of your investment.
- Flexible Payouts: Investors can choose between cumulative and non-cumulative options, depending on whether they want regular income or long-term compounding.
- Higher Rates for Seniors: Senior citizens enjoy an additional interest boost, ensuring a steady monthly income post-retirement.
- Tax Benefits: Investment in this FD may qualify for tax deductions under Section 80C of the Income Tax Act, and interest earned is taxable as per income slab.
- Loan Against FD: The scheme provides easy liquidity through loan facilities without breaking the deposit.
Target Investors
The LIC New FD Scheme is ideal for:
- Retired individuals seeking stable monthly income
- Salaried professionals wanting low-risk savings
- Parents planning for their child’s future education or marriage
- Small business owners looking for secure short-term parking of funds
Safety and Reliability
LIC’s strong financial track record and government ownership make this FD scheme one of the safest investment options in India. Unlike private deposits, LIC’s schemes are considered “sovereign-safe”, backed by decades of trust and consistent performance.
The new FD product also integrates LIC’s digital services, allowing investors to monitor deposits, maturity values, and interest accruals online through the MyLIC app or LIC’s website.
How to Apply
To invest in the LIC New FD Scheme 2026, customers can visit the nearest LIC branch or complete the process online. Required documents include:
- PAN card
- Aadhaar card
- Address proof
- Recent passport-sized photograph
Investors can deposit through cheque, demand draft, or direct online transfer. Once completed, an FD certificate is issued, detailing tenure, rate, and maturity date.
Expected Returns Example
For instance, an investment of ₹1,00,000 for 5 years at 8% per annum would yield approximately ₹1,46,900 at maturity (cumulative option). For senior citizens, this could increase to around ₹1,49,500 with the 0.5% bonus interest.
Conclusion
The LIC New FD Scheme 2026 stands out as one of the most secure and rewarding investment plans for individuals who prioritize safety and predictable income over high-risk returns. With competitive interest rates, flexible tenures, and LIC’s unmatched credibility, this FD scheme is perfectly suited for long-term wealth preservation and stable growth.
For those seeking a balance between security, flexibility, and decent returns, LIC’s new FD plan could be a smart financial move in 2026.
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