LIC Fixed Deposit Scheme – In a significant move aimed at supporting the financial needs of India’s ageing population, the Life Insurance Corporation of India (LIC) has introduced a brand-new Fixed Deposit Scheme for Senior Citizens in 2025. This scheme promises a guaranteed monthly interest payout, making it highly attractive for retirees looking for stable, predictable income. With limited eligibility criteria and a special enrollment window, senior citizens are urged to act quickly and take advantage of this opportunity. The scheme is designed to provide both financial security and peace of mind, with competitive interest rates, LIC’s trust factor, and simplified procedures. Below is a comprehensive breakdown of the scheme’s features, eligibility, application process, and other critical details.
Scheme Highlights and Key Features
LIC’s Fixed Deposit Scheme for Senior Citizens is crafted to suit the post-retirement lifestyle with features focusing on regular income and low risk.
- Monthly guaranteed interest payout to ensure regular income.
- Backed and managed by LIC – India’s most trusted insurer.
- Minimum deposit amount starts from ₹1,00,000.
- Tenure options ranging from 3 to 10 years.
- Higher interest rates compared to regular FD schemes.
- Special bonus interest for 5-year and 10-year deposits.
- Nomination facility available.
- Premature withdrawal with penalty after lock-in period.
Key Features Table
| Feature | Details |
|---|---|
| Scheme Name | LIC Senior Citizen Fixed Deposit Scheme |
| Launch Year | 2025 |
| Monthly Payout | Yes (Guaranteed Interest Payout) |
| Minimum Deposit Amount | ₹1,00,000 |
| Tenure Options | 3, 5, 7, and 10 years |
| Interest Rate Range | 7.5% to 8.75% annually |
| Lock-in Period | 12 months |
| Special Bonus Rate (5/10 years) | Additional 0.25% interest |
Who Is Eligible to Apply?
To ensure the scheme serves its intended audience, LIC has introduced a few basic but essential eligibility criteria.
- The applicant must be a resident Indian senior citizen aged 60 years or above.
- LIC policyholders will be given priority during the initial application window.
- Joint accounts are permitted with another senior citizen or a spouse.
- PAN card and Aadhaar are mandatory for KYC compliance.
- Pensioners with no other income sources are especially encouraged.
Eligibility Overview Table
| Eligibility Factor | Requirement |
|---|---|
| Age | Minimum 60 years |
| Residency | Indian resident only |
| Documentation | PAN, Aadhaar, Address Proof |
| Priority Benefit | Existing LIC policyholders |
| Joint Account Option | Allowed (must be spouse or another senior) |
| Minimum Deposit Limit | ₹1,00,000 |
| Pensioner Focus | Special allotment quota |
How to Apply for LIC Senior Citizen FD Scheme
LIC has made the application process senior-friendly and efficient, both online and offline.
- Visit the nearest LIC branch with documents.
- Download the application form from LIC’s official portal.
- Fill in personal, bank, and nominee details accurately.
- Submit a cheque/DD or transfer funds via net banking.
- Verification and approval take 3–5 working days.
- Confirmation letter and monthly payout schedule sent via post/email.
Documents Required
- Aadhar Card (self-attested copy)
- PAN Card
- Passport-sized photograph
- Address proof (electricity bill, ration card, etc.)
- Bank account details (for payout transfer)
Application Steps Table
| Step | Description |
|---|---|
| Step 1 | Visit LIC branch or website |
| Step 2 | Fill in and submit FD application form |
| Step 3 | Attach KYC documents and photo |
| Step 4 | Choose deposit amount and tenure |
| Step 5 | Transfer funds via cheque/DD/online |
| Step 6 | Receive confirmation and schedule of payout |
Monthly Interest Rates and Tenure Options
Interest rates vary depending on the deposit tenure, offering higher returns for longer commitments.
Interest Rate Chart (2025)
| Deposit Tenure | Annual Interest Rate | Monthly Payout (on ₹5 lakh) |
|---|---|---|
| 3 Years | 7.5% | ₹3,125 |
| 5 Years | 8.0% + 0.25% Bonus | ₹3,542 |
| 7 Years | 8.25% | ₹3,750 |
| 10 Years | 8.5% + 0.25% Bonus | ₹3,958 |
Note: Monthly payouts are approximate and rounded.
Benefits of Choosing LIC’s Senior Citizen Deposit Over Other FDs
LIC brings unique advantages that most private or commercial banks may not offer.
- Monthly payouts are timely and tax-friendly for small amounts.
- LIC’s reputation guarantees deposit safety.
- Fixed rates with zero market linkage – no fluctuation risks.
- High transparency and quick service for senior citizens.
- Special bonus incentives for long-term savers.
- Nominee claims are processed without delay.
Comparison With Bank FDs Table
| Feature | LIC FD Scheme | Regular Bank FDs |
|---|---|---|
| Monthly Interest Option | Yes | Not always |
| Bonus Interest | Yes (long term) | Rare |
| Minimum Amount | ₹1,00,000 | As low as ₹10,000 |
| Safety & Guarantee | Very High (LIC backed) | Depends on bank |
| Special Senior Benefits | Priority and bonus | Only interest bump |
| Nomination Simplicity | Easy and paperless | Often delayed claims |
Application Deadline and Limited Window
LIC has notified a limited-time enrollment window for this scheme due to expected high demand.
- Enrollment closes on 30th September 2025.
- Extensions may not be granted, so early applicants will be prioritized.
- Applications beyond quota limit will not be entertained post-deadline.
- Those who miss this phase may have to wait for 2026 or settle for lower interest schemes.
Deadline Table
| Event | Date |
|---|---|
| Scheme Launch | 1st July 2025 |
| Application Window Start | 2nd July 2025 |
| Last Date to Apply | 30th September 2025 |
| Monthly Payout Start Date | Within 1 month of approval |
LIC’s Senior Citizen Fixed Deposit Scheme is a welcome relief for many older adults looking for low-risk, consistent returns on their retirement savings. With guaranteed monthly income, bonus interest for long-term deposits, and LIC’s security umbrella, it checks all the boxes for post-retirement financial planning. However, it is always advisable to consult with a financial advisor or tax consultant before investing, especially if you already receive multiple income streams, as tax implications may vary.
Frequently Asked Questions (FAQs)
1. Is the LIC FD scheme for senior citizens available online?
Yes, senior citizens can download the application form from the LIC website, but final submission must be done at the branch with physical documents.
2. What happens if I withdraw the deposit early?
Premature withdrawal is allowed only after 12 months, with a 1% penalty on interest rate.
3. Is the monthly interest taxable?
Yes, monthly interest is subject to income tax under senior citizen slab rates. TDS may apply if interest exceeds ₹50,000 per year.
4. Can I invest in this scheme multiple times?
Yes, multiple deposits are allowed, but the total value may be capped at ₹20 lakhs per senior citizen.
5. What is the age limit for joint applicants?
In joint accounts, at least one applicant must be a senior citizen (60+ years), and the co-applicant should ideally be a spouse or legal heir.