LIC FD Rates
The updated list of LIC Housing Finance FD Rates, for Regular and Senior Citizen, is listed below:
| Tenure | Regular FD Rates | Senior Citizen FD Rates |
|---|---|---|
| 1 year | 7.30% p.a. | 7.40% p.a. |
| 18 months | 7.35% p.a. | 7.45% p.a. |
| 2 years | 7.40% p.a. | 7.50% p.a. |
| 3 years | 7.45% p.a. | 7.55% p.a. |
| 5 years | 7.45% p.a. | 7.55% p.a. |
LIC HFL offers good interest rates on their FD schemes. At present, the interest rates offered ranges from 7.30% to 7.45% on all individual deposits and 7.40% to 7.55% on all senior citizen deposits. There are flexible tenure options that a customer can choose from. The tenure ranges from a minimum of 1 year to a maximum of 5 years. The interest is payable and compounded annually.
- LIC HFL short-term FD rates: LIC HFL offers short-term FD schemes for those who do not want to make a commitment for a long period of time. The tenure range for these types of deposits extends from 1 year to 18 months. The rate of interest paid for this type of investment tenure ranges from 7.30% to 7.35%.
- LIC HFL medium-term FD rates: For those who are ready to keep their money locked in an FD for a little bit longer, medium-term FDs are an ideal option. Generally, the tenure for this slab ranges from 2 to 4 years. The rate of interest paid varies from 7.40% to 7.45%.
- LIC HFL long-term FD rates: The tenure for a long-term FD is 5 years and the rate of interest paid is 7.45%. This type of investment is for those who are ready to make a long-term commitment with their money.
- LIC HFL senior citizen FD rates: All senior citizens are eligible for a higher rate of interest. An additional 0.1% will be paid to all those who are above 60. All senior citizens can invest in LIC HFL’s short-term, medium-term and long-term FDs. The rate of interest paid for those in this age bracket varies from 7.40% to 7.55%. The tenure ranges from a minimum of 1 year to a maximum 5 years.
How to calculate LIC HFL FD interest rate
It is very easy to calculate the interest that you will earn out of your LIC HFL FD. This can be done before you apply for the term deposit to know how much you will earn from the investment. There are many factors that you have to take into account to calculate LIC HFL FD interest rate.
Factors affecting maturity amount:
- The amount/principal invested: The deposit amount is a very crucial and significant factor that impacts the total value of your investment. Generally, higher the investment amount, the more you will earn out of it.
- Rate of interest: The interest rate offered by the company is also a major factor that affects the total interest that is earned on a particular deposit. In most cases, the interest rate is directly proportional to the tenure range.
- Tenure of deposit: As far as LIC HFL is concerned, they pay more for those investing in longer tenure FDs.
- Interest computation frequency: How the interest is computed on a certain FD determines how much money you will eventually make out of it after the maturity period.
- Taxation: The amount of Tax Deducted at Source (TDS) also has an impact on the total interest income that you will earn from the investment that you make in an FD.
LIC HFL FD interest calculator
An FD interest calculator is used to compute the total maturity amount of the term deposit by keying in relevant information such as principal amount, rate of interest, tenure, etc. An online FD interest calculator can be used to make this calculation.
For example, if you invest Rs.1 lakh for a period of 2 years in an LIC HFL FD scheme at the rate of 7.40% per annum, the total maturity value will be Rs.1,07,400. The total interest earned out of the term deposit scheme will be Rs.7,400.
Advantages of investing in LIC fixed deposit:
- The LIC HFL FD is rated as a stable and safe investment to make by CRISIL. This means that the investment is a highly stable one that offers guaranteed returns
- The interest rates offered on LIC fixed deposits are very competitive and offers a higher rate of return when compared to your average savings account
- There are a wide range of term deposit schemes that one can choose from, including different tenure ranges and interest payout options
Key Information before Opening a Fixed Deposit
| Eligibility to Open a FD |
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| Documents Required |
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| Benefits of an LIC HFL FD |
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Factors affecting LIC HFL FD rates
The interest rates offered by LIC HFL depends on a number of factors. These may include both internal and external determinants. Some of these factors could be Reserve Bank of India (RBI) policies, economic conditions, market fluctuation and also the liquidity position of LIC. Let us take a look at some of these elements:
- Economic conditions: Certain economic developments play a huge role in determining the interest rates offered by banks and financial institutions in the country. In most growing economies, people usually try to avail credit to meet their financial needs. Also, when there is high demand for credit, banks may offer higher interest rates to invite more depositors.
- Rise in prices: Among other factors, inflation is also one of the main factors that have an impact on term deposit rates. This determines the interest rates that banks and other financial institutions offer to a large extent.
- Recession: Recession will usually tend to have a negative effect on interest rates in most cases. This is the time when banks and financial institutions will start lowering the rate of interest that is offered on most financial products.
- RBI policies: RBI policies and guidelines play a crucial role in determining the interest rates in the economy.
