LIC FD Monthly Income – In a major move aimed at ensuring financial stability for India’s aging population, the Life Insurance Corporation of India (LIC) has announced an enhanced fixed deposit (FD)-linked income scheme for senior citizens in 2025. Under this scheme, senior citizens can earn a monthly income of up to ₹6,500 by investing a lump sum amount in LIC’s fixed deposit plan. With rising inflation and increasing medical expenses, this initiative is being welcomed as a safe and stable income option for retirees. The scheme promises guaranteed monthly payouts, competitive interest rates, and flexible tenures, making it a smart investment choice for individuals aged 60 years and above.
LIC FD Monthly Income Scheme 2025 – Key Highlights
The LIC FD Monthly Income Scheme 2025 offers senior citizens a safe and reliable investment option with assured monthly returns. By investing a lump sum amount, retirees can earn up to ₹6,500 per month. The scheme provides high interest rates, flexible tenures, and zero market risk, ensuring financial stability post-retirement.
- Monthly income up to ₹6,500 for senior citizens
- Assured returns with zero market risk
- Available only to individuals aged 60 years or above
- Minimum investment starts from ₹2 lakh
- Tenure options range from 5 to 10 years
- Interest rates as high as 8.5% annually for seniors
- Direct credit to bank accounts every month
- LIC-backed security and trust
How the LIC FD Scheme Works for Senior Citizens
LIC’s fixed deposit scheme is designed to provide a fixed monthly income to senior citizens who invest a lump sum amount for a pre-decided tenure. The interest earned is disbursed monthly, offering a consistent cash flow to help cover living expenses.
Investment Amount vs Monthly Income Table
| Investment Amount (₹) | Tenure | Interest Rate (%) | Monthly Income (₹) |
|---|---|---|---|
| 2,00,000 | 5 years | 8.0% | 1,333 |
| 5,00,000 | 5 years | 8.0% | 3,333 |
| 7,50,000 | 7 years | 8.25% | 5,156 |
| 8,00,000 | 8 years | 8.5% | 5,666 |
| 9,00,000 | 10 years | 8.5% | 6,375 |
| 10,00,000 | 10 years | 8.5% | 6,500 |
| 15,00,000 | 10 years | 8.5% | 9,750 |
| 20,00,000 | 10 years | 8.5% | 13,000 |
Eligibility Criteria for LIC FD Scheme 2025
To ensure that only genuine senior citizens benefit from the scheme, LIC has laid out the following eligibility conditions:
- The applicant must be a resident Indian senior citizen aged 60 years or more
- Must possess valid KYC documents (Aadhaar, PAN, etc.)
- Must hold a valid bank account in their name
- Joint accounts allowed only with another senior citizen
- Nominations can be made for easy transfer of benefits
Features & Benefits of LIC Senior Citizen Fixed Deposit Plan
This FD scheme stands out for its safety and assurance. Here are some key features:
- Guaranteed Monthly Income: Assured monthly payout for the chosen tenure
- Higher Interest Rates: Special rates exclusive to senior citizens
- Flexible Investment Options: Invest from ₹2 lakh to ₹20 lakh or more
- Trusted by Millions: Backed by LIC’s strong financial credibility
- Nomination Facility: Smooth transition of benefits to legal heirs
- Premature Withdrawal: Allowed under certain medical or emergency conditions
LIC FD vs Regular Bank FD for Senior Citizens
| Feature | LIC FD Scheme 2025 | Regular Bank FD |
|---|---|---|
| Interest Rate | Up to 8.5% | 6.5% – 7.5% |
| Monthly Income Option | Yes | Yes |
| Security of Capital | Very High (LIC-backed) | Depends on Bank |
| Tenure Options | 5 to 10 Years | 1 to 10 Years |
| Minimum Investment | ₹2,00,000 | ₹1,000 – ₹10,000 |
| Liquidity/Premature Exit | Limited but available | Available with penalty |
| Tax Benefit (80C) | Yes | Yes |
Step-by-Step Guide to Apply for LIC FD Monthly Income Scheme
- Visit the nearest LIC branch or official website.
- Fill out the application form specifically for senior citizens.
- Submit KYC documents, age proof, and PAN card.
- Choose your preferred investment amount and tenure.
- Select the monthly income payout option.
- Transfer the funds via cheque, bank transfer, or demand draft.
- Collect the acknowledgment and monthly income certificate.
Why This Scheme is a Game-Changer for Retirees
With reduced interest in savings accounts and the volatility of market-based investments, senior citizens often face uncertainty in managing post-retirement income. This LIC fixed deposit scheme addresses that gap by offering:
- Predictable monthly earnings
- Zero risk of market fluctuation
- Stability for long-term financial planning
- Peace of mind for retirees and their families
Important Dates & Updates to Remember
| Event | Date |
|---|---|
| Scheme Launch Date | 1 June 2025 |
| Last Date to Invest | 30 September 2025 |
| Monthly Payout Begins | 1st of every month post-investment |
| Scheme Validity | Valid for FY 2025-26 |
| Review Meeting by LIC | November 2025 |
LIC’s new fixed deposit-based monthly income scheme for senior citizens in 2025 is not just another investment option—it is a financial lifeline for lakhs of retirees seeking stability and assured income in their golden years. With a monthly return of up to ₹6,500 and the trust of LIC, this scheme is set to become one of the most preferred retirement planning tools in the country. If you’re above 60 and looking for a reliable monthly income source with zero market risks, this LIC scheme could be the perfect fit.
FAQs
- What is the minimum amount required to invest in the LIC FD scheme for senior citizens?
- The minimum investment required is ₹2,00,000 to avail the monthly income facility.
- Can premature withdrawals be made from the LIC FD?
- Yes, but only in cases of emergency or medical necessity, subject to LIC’s approval and penalty.
- Is the monthly income from LIC FD taxable?
- Yes, the monthly income is taxable as per the applicable slab of the investor.
- Can I invest jointly with my spouse in this scheme?
- Yes, joint investment is allowed if both individuals are senior citizens.
-
How is the monthly payout credited to the investor?
-
The monthly income is directly credited to the registered bank account through NEFT or ECS.
-