LIC’s New FD Scheme : In a major relief for senior citizens, the Life Insurance Corporation of India (LIC) has launched a new Fixed Deposit (FD)-like scheme that guarantees a fixed monthly income. Specially designed to cater to the financial needs of retirees, this scheme ensures steady cash flow without the risk of market fluctuations. Let’s understand the details, eligibility, benefits, and how you can apply for this promising scheme.
What is LIC’s New FD Scheme for Senior Citizens?
LIC’s latest offering is a specially curated deposit plan for individuals aged 60 years and above. Unlike traditional bank FDs, this scheme focuses not just on saving but also on generating a fixed monthly payout, helping senior citizens manage their monthly expenses with ease and dignity.
Key Highlights:
- Guaranteed fixed monthly income
- Exclusively for individuals aged 60 years and above
- Higher returns compared to regular bank FDs
- Flexible deposit amount options
Hassle-free application and documentation
Eligibility Criteria for LIC Senior Citizen FD Scheme
Before applying, it’s important to know who qualifies for this scheme. Here’s the eligibility:
- Applicant must be an Indian citizen.
- Minimum age at entry: 60 years
- No maximum age cap (as long as medically fit, if required)
- Should possess valid KYC documents (Aadhaar, PAN, Address Proof)
Benefits of LIC’s FD Scheme for Senior Citizens
This scheme offers multiple financial advantages tailored to meet the needs of older adults:
- Stable Income: Assured monthly income without any fluctuations.
- Higher Interest Rates: Special rates higher than those offered to general customers.
- Financial Independence: Helps manage post-retirement life without depending on others.
- Loan Facility: Loans can be availed against the deposit after a specific tenure.
- Premature Withdrawal: Permitted under certain conditions with minor penalty charges.
Monthly Income Details: How Much You Can Earn
Depending on your investment amount, the monthly income varies. Here’s a detailed table for better understanding:
| Deposit Amount (₹) | Interest Rate (Approx.) | Monthly Income (₹) | Tenure Options |
|---|---|---|---|
| 1,00,000 | 7.5% | 625 | 5-10 years |
| 2,00,000 | 7.5% | 1,250 | 5-10 years |
| 3,00,000 | 7.5% | 1,875 | 5-10 years |
| 5,00,000 | 7.5% | 3,125 | 5-10 years |
| 7,50,000 | 7.5% | 4,687 | 5-10 years |
| 10,00,000 | 7.5% | 6,250 | 5-10 years |
| 15,00,000 | 7.5% | 9,375 | 5-10 years |
Note: Exact returns may vary slightly based on LIC’s prevailing interest rates and guidelines.
How to Apply for LIC Senior Citizen FD Scheme
The application process is simple and user-friendly. Here’s how you can enroll:
- Step 1: Visit the nearest LIC branch or the official LIC website.
- Step 2: Fill out the Senior Citizen FD Scheme application form.
- Step 3: Attach all necessary documents like Aadhaar card, PAN card, and age proof.
- Step 4: Choose the deposit amount and tenure as per your preference.
- Step 5: Deposit the investment amount via cheque, demand draft, or online transfer.
- Step 6: Receive the policy document and monthly income certificate upon approval.
Documents Required for Application
Ensure you have the following documents while applying:
- Proof of Age (Aadhaar Card, Voter ID, Passport)
- Identity Proof (PAN Card, Driving License)
- Address Proof (Utility Bills, Aadhaar Card)
- Bank Account Details (for monthly income transfer)
- Recent Passport-size Photographs
Important Terms and Conditions You Should Know
Before investing, keep these terms and conditions in mind:
- Monthly income starts after one month of deposit confirmation.
- Premature closure is allowed after 3 months, but with applicable penalties.
- Interest rates are subject to change at LIC’s discretion.
- TDS (Tax Deducted at Source) may apply if interest income exceeds prescribed limits.
- Loan facility available after 6 months of deposit tenure.
Comparison: LIC Senior Citizen FD Scheme vs Regular Bank FD
Here’s a quick comparison between LIC’s scheme and normal bank FDs:
| Feature | LIC Senior Citizen FD | Bank FD for Senior Citizens |
|---|---|---|
| Monthly Payout Option | Yes | Limited Banks |
| Interest Rate | Higher | Lower |
| Loan Facility | Available | Available |
| Premature Withdrawal Option | Yes (with penalty) | Yes (with penalty) |
| Safety and Security | Very High (Govt backed) | High |
Why Senior Citizens Should Consider LIC’s FD Scheme
Investing in LIC’s FD scheme offers the following strategic advantages:
- Zero market risk unlike mutual funds or stocks
- Reliable monthly income for meeting day-to-day needs
- Better returns as compared to most traditional saving options
- Highly secure being backed by India’s most trusted insurance brand
- Simplified claim settlement process for nominees
LIC’s new FD scheme for senior citizens is a blessing for those looking for financial stability and fixed monthly earnings in their retirement years. With higher interest rates, assured returns, and LIC’s trusted credibility, this scheme emerges as an ideal investment avenue for elderly citizens.
However, potential investors should always read the scheme document carefully and, if required, consult a financial advisor before making a final investment decision.
What are the eligibility criteria for LIC's new FD scheme?
Only senior citizens are eligible for fixed monthly income.
How can senior citizens benefit from LIC's new FD scheme?
By receiving fixed monthly income.
How does LIC's new FD scheme differ from traditional fixed deposits?
Only senior citizens are eligible for fixed monthly income.
What are the key features of LIC's new FD scheme for senior citizens?
Higher interest rates, fixed monthly income for seniors.
What is the process to apply for LIC's new FD scheme for senior citizens?
Visit LIC's website or nearest branch to apply.
What is the minimum deposit amount required for LIC's new FD scheme?
Minimum deposit amount varies; check LIC's official website for details.
What is the interest rate offered in LIC's new FD scheme for senior citizens?
Interest rate varies, providing fixed monthly income for senior citizens.
Join
Join