LIC Senior Citizen FD Plan 2025 is a fixed deposit scheme by LIC Housing Finance Ltd made especially for senior citizens. This plan helps older people to save money safely and earn good interest on their savings. It is better than a savings account and gives fixed and stable returns.
Senior citizens also get extra interest, more than what is given to regular people. In 2025, this plan is considered one of the best options for those who want peace of mind and secure income after retirement.
Contents
- Key Features of LIC Senior Citizen FD Plan 2025
- LIC FD Interest Rates for Senior Citizens (2025)
- Who Can Apply?
- Documents Needed
- How to Open LIC Senior Citizen FD Plan 2025
- Interest Payment Options
- Premature Withdrawal Rules
- Loan Benefit Against LIC FD
- Tax Rules for LIC FD in 2025
- Conclusion
- Frequently Asked Questions
Key Features of LIC Senior Citizen FD Plan 2025
| Feature | Details |
|---|---|
| Minimum Deposit (Monthly Payout) | ₹2,00,000 |
| Minimum Deposit (Yearly Payout) | ₹10,000 |
| Extra Interest for Seniors | +0.25% above regular rates |
| Tenure | 18 months to 5 years |
| Loan Facility | Available (Up to 75% of deposit) |
| Partial Withdrawal | Allowed after 3 months |
| Automatic Renewal | Yes, after maturity |
| Nomination Facility | Yes |
| CRISIL Rating | AAA/Stable (Very Safe) |
| Insurance on FD | Up to ₹5 Lakh under DICGC |
LIC FD Interest Rates for Senior Citizens (2025)
LIC gives higher interest to senior citizens depending on the time period of the FD. The rates are as follows:
| Tenure | Interest Rate (Senior Citizen) |
|---|---|
| 1 year | 7.25% |
| 18 months | 7.35% |
| 2 years | 7.60% |
| 3 years | 7.75% |
| 5 years | 7.75% |
Who Can Apply?
LIC FD account is open for:
- Senior Citizens (age 60+)
- Individuals and minors (with guardian)
- NRIs
- Partnership firms
- Sole proprietors
- Trusts, Clubs, HUFs
- Joint stock companies
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Documents Needed
To open an LIC Senior Citizen FD account in 2025, you need to submit:
- PAN Card
- Aadhaar Card
- Age Proof (Birth Certificate, PAN, etc.)
- Address Proof (Electricity Bill, Aadhaar, etc.)
- Identity Proof (Voter ID, Driving License, Passport)
- FD Application Form
- 2 Passport Size Photos
How to Open LIC Senior Citizen FD Plan 2025
- Visit nearest LIC Housing Finance branch.
- Ask for FD application form.
- Fill in all details.
- Submit documents and deposit money.
- Get FD receipt after application is accepted.
Interest Payment Options
LIC gives interest in two ways:
- Cumulative FD: Interest is added yearly and paid at the end.
- Non-Cumulative FD: Interest is paid every year on March 31.
You can choose the option you like. Interest is directly sent to your bank account via ECS.
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Premature Withdrawal Rules
| Time Period | Interest Paid |
|---|---|
| < 3 months | No interest |
| 3 to 6 months | 3% p.a. |
| After 6 months | 1% less than promised rate |
| Not defined period | 2% less than lowest rate |
Loan Benefit Against LIC FD
- You can take a loan up to 75% of your deposit.
- Loan interest rate is 2% more than your FD interest rate.
- This is helpful in case of emergency cash needs.
Tax Rules for LIC FD in 2025
- Interest earned is taxable.
- If interest income is more than ₹50,000 for senior citizens, 10% TDS is deducted.
- If PAN card is not given, TDS becomes 20%.
- You can save tax under Section 80C only if the FD tenure is 5 years.
- Submit Form 15H to avoid TDS if income is below taxable limit.
Conclusion
The LIC Senior Citizen FD Plan 2025 is a great way to earn steady income after retirement. It is safe, gives extra interest, allows loans, and comes with flexible terms. If you want a peaceful and secure life in your older years, this FD plan is a smart choice.
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Frequently Asked Questions
Can I open a joint FD account as a senior citizen?
Yes, but only the main account holder will get the interest and tax benefits.
How is interest paid?
Interest is sent to your bank account through ECS.
Is my money safe with LIC FD?
Yes. LIC FD is AAA rated and insured up to ₹5 lakh by DICGC.
Can I deposit more money later into the same FD?
No. You need to open a new FD account for extra money.
