LIC FD Interest Rates

LIC FD Interest Rates
LIC FD interest rates differ from bank to bank, depending on the amount of time an investor will keep the funds in the FD. The short-term FD, which lasts for a few days to a year, earns 5.25% interest on average. Senior citizens get higher rates. Medium-term FDs last from one year and five months to four years and eleven months, and pay 5.9% to 6.15 percent interest.

The LIC calculates FD interest in one of two ways, either cumulatively or non-cumulatively. The cumulative method combines interest earned throughout the tenure of the FD. Interest is calculated as you pay the principal amount each month, so the cumulative method is better for people who earn a fixed monthly income. The non-cumulative method, on the other hand, takes into account the principal amount only.


In addition, short-term FDs offer high interest rates. The interest rate for these accounts can range from 8% to 8.15%. You can choose to have your money compounded monthly, quarterly, half-yearly, or yearly. If you are a senior citizen, you can choose to pay 20% of your interest in taxes instead of paying it monthly. You can make a decision based on your individual financial situation and what is best for you.

If you are considering a LIC FD, make sure you compare the interest rates for each type. FDs with fixed interest rates can provide the lowest rates for a longer time period, but lower rates for shorter-term deposits. For example, the 5.50% interest rate on a sixty-month LIC FD is higher than that on a one-year FD. A senior citizen FD can have a term of up to five years.

LIC FD Interest Rates

lic agent

lic merchant

lic merchant portal

lic best policy