The LIC offers a variety of fixed deposit schemes that are suitable to meet the required needs of every investor. The LIC FD rates are quite competitive, and they also provide a reasonable rate of return on the overall investments made by the investors. With the LIC FD plan calculator, we can calculate the various FD rates too. Therefore, the LIC FD calculator is quite an important platform for investors investing in LIC fixed deposits.
Housing finance offers a LIC FD rate of 7.25%-7.75% per annum to the general public and 7.50%-8.00% per annum to senior citizens.
As mentioned above, the LIC FD interest rate varies from time to time and year to year. The following table gives an insight into the various LIC housing finance deposit rates according to the given periods:
|Highest slab rate
|LIC FD Finance rates
Various FD interest rates on domestic deposits are also offered by LIC housing finance for regular citizens. These LIC FD interest rates vary depending on the period. The table below shows a thorough view of the several LIC FD interest rates in 2023:
LIC Housing Finance FD Interest Rates 2023
LIC Housing Finance FD Interest Rates on Domestic deposits from Rs 20,000 to Rs 20 crore for Regular Citizens w.e.f. 12 April 2023
|Cumulative Interest Rates (% p.a.)
|Non-Cumulative Interest Rates (% p.a.)
To open an FD account with the LIC, the applicants must match certain given criteria. If not, they will be exempted from this facility and thus unable to create an FD in LIC. The various eligibility criteria that are required to be kept in mind before starting a LIC’s FD account are as follows:
- The applicants must be Indian citizens and must possess citizenship of India.
- Only limited companies are allowed to create FD accounts with LIC.
- Private limited companies are also eligible to create FD accounts with LIC.
- Non-residential Indians are eligible to create an FD account too.
- Cooperative societies are allowed to create FD accounts.
- An association of various persons can also create an FD account with LIC.
Without the necessary documents, an applicant will not be able to create a LIC FD account. Therefore, it is necessary to provide relevant documents so that the documentation process is smoothly carried out and the individual has an LIC FD account. Speaking of documents, we need to first know which are the necessary documents required for a LIC FD account. Those necessary documents are as follows:
- The application form must be filled out with all the important information mentioned.
- Identity proof is required to be submitted during the process of LIC FD account formation. The document may be a PAN card.
- Address proof is another necessary document to be presented during the time of account formation.
- KYC documents are also important for the LIC FD account.
A loan against FD is a special type of loan where the fixed deposit is held as collateral of the loan. That means if we aren’t able to repay the loan we took on time, then our FD will be seized, or in other words, we can say that the FD is held as a security by the bank when we avail a loan against FD.
In today’s times, it has become quite easy to avail of a loan against your FD from the comfort of your home. Except during a few circumstances when it becomes necessary to visit the bank, most lenders make it possible to apply for a loan against the FD through online mode. Various banks allow people to avail of a loan against their own FD through their websites, making it a completely hassle-free and less time-consuming process. We can easily visit the website of the respective banks we want and avail of our loan against FD without having to visit the bank branch.
The following online procedure can be followed to avail of a loan against FD online:
- Login to the website of the desired bank.
- Go to the option “fixed deposit” section and select “overdraft facility against FD”.
- Provide the necessary information like tenure, loan amount, etc.
- After the application process is over, the applicant will receive a notification via email or SMS.
The fixed deposit is one of the best investment options in the world that provides a reasonable amount of returns and has low-risk chances. The FD doesn’t allow for the withdrawal of money in between the tenure. If there’s any urgent need on the part of the investor, they can choose to break the FD or opt for premature withdrawal of funds.
When we opt for premature withdrawal of funds, we will have to close our fixed deposit accounts before the maturity period. However, there is a need to pay a certain amount of penalty before availing this facility. This is usually done so that the investors can control their habit of frequent withdrawals and so that the process of saving is encouraged. The penalty charges usually vary in their range. They range from 0.5 to 1%, depending on various kinds of banks. But it also must be kept in mind that certain banks allow you to withdraw money without taking any penalty.
The account holder needs to choose a nominee who will get all the benefits of the FD account after the original account holder. And for that purpose, certain eligibility criteria must be fulfilled by the nominee. Some of those are as follows:
- Anyone can be legally appointed as a nominee according to the person.
- But it is advisable to select close family members as nominees.
- If the nominee is a minor, then there must also be someone major who can handle the account till the period the nominee is a minor.
One can apply for a loan against FD after 3 months and not before that.
Yes, there is a tax-saver option if the investment is made for 5 years.
LIC housing finance is a subsidiary of LIC, and LIC is the biggest stakeholder. It is controlled by the LIC of India. It provides several LIC HFL FD rates depending on different tenures.
In the LIC FD plan, there is a straightforward way through which interest is paid to the account holder. It is directly transferred to the bank account of the holder through the ECS facility.
The two types of payout options offered to the customers are cumulative and noncumulative deposits.