LIC has introduced a new FD-style income scheme that is attracting strong attention from investors looking for safe and fixed monthly income. Under this LIC-backed scheme, an investment of ₹2.5 lakh can generate up to ₹16,250 per month, making it especially appealing for senior citizens and conservative investors seeking predictable returns.
What Is the LIC FD Scheme
Although LIC traditionally offers insurance and annuity products, this new scheme works like a fixed deposit with monthly payout, combining capital safety with assured income. The plan is structured to provide regular monthly returns while keeping the principal secure, backed by LIC’s strong financial credibility.
How ₹2.5 Lakh Generates ₹16,250 Per Month
The monthly payout is calculated based on the selected tenure, interest rate and payout option. Investors opting for the monthly income mode receive a fixed amount credited directly to their bank account.
LIC FD Scheme – Income Breakdown
| Investment Amount | Monthly Income | Annual Income | Ideal For |
|---|---|---|---|
| ₹2,50,000 | ₹16,250 | ₹1,95,000 | Senior citizens, retirees |
| ₹5,00,000 | Higher monthly payout | Proportionate | Long-term income seekers |
Actual payouts may vary depending on plan tenure and option selected.
Key Features of LIC’s New FD-Style Scheme
The scheme offers fixed monthly income, low risk, and predictable returns. It is suitable for investors who want income stability rather than market-linked growth. The investment amount is locked in for the chosen period, ensuring disciplined savings and uninterrupted income flow.
Who Should Invest in This LIC Scheme
This plan is ideal for retired individuals, senior citizens, homemakers and anyone seeking steady monthly income without exposure to market volatility. It can also serve as a secondary income source for families.
Safety and Risk Factor
Being backed by LIC, the scheme carries a high level of trust and financial security. Unlike market-linked instruments, returns are not affected by stock market fluctuations, making it suitable for risk-averse investors.
Tax Treatment of Monthly Income
The monthly income received under the scheme is taxable as per the investor’s income tax slab. TDS rules may apply depending on total annual income. Investors should consult a tax advisor for clarity.
How to Apply for the LIC FD Scheme
Interested investors can apply through LIC branches, authorised agents or official LIC channels. Identity proof, address proof and bank account details are required. Existing LIC customers may benefit from faster processing.
One Quick Takeaway Section
The LIC FD Scheme allows investors to put in ₹2.5 lakh and earn up to ₹16,250 every month, offering a stable and secure income option backed by LIC.
Conclusion: For investors prioritising safety, regular income and peace of mind, LIC’s new FD-style scheme stands out as a strong option. With predictable monthly payouts and the trust of LIC, it is well-suited for those planning steady cash flow in the long term.
Disclaimer: Figures mentioned are indicative. Monthly income, tenure and returns depend on the specific LIC plan option chosen. Investors should verify complete details with LIC before investing.
