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LIC, India’s trusted name in insurance and savings, has launched a new Fixed Deposit (FD)-style investment plan for 2025 that’s drawing a lot of attention. The scheme promises guaranteed monthly income, safety of capital, and steady returns all backed by the reliability of the Life Insurance Corporation of India.
If you’ve been looking for a secure way to earn consistent income, this new LIC FD-style plan could be worth exploring. Let’s look at how it works and what kind of returns investors can expect.
LIC’s New FD Plan for 2025
The LIC New FD Scheme 2025 isn’t a traditional bank fixed deposit but functions similarly offering guaranteed, fixed returns for a specified tenure. It’s designed for individuals seeking regular monthly income rather than long-term wealth accumulation.
Here are the main highlights:
| Feature | Details |
|---|---|
| Scheme Name | LIC New FD Scheme 2025 (Monthly Income Plan) |
| Minimum Investment | ₹1,00,000 |
| Example Shown | ₹2,00,000 investment |
| Tenure Options | 3 years, 5 years, or 10 years |
| Interest Payout | Monthly |
| Expected Monthly Income (on ₹2 lakh) | Around ₹13,000 per month (based on plan and tenure) |
| Capital Safety | Fully guaranteed by LIC |
| Tax Benefits | Available under Section 80C (depending on the plan type) |
The structure is simple: you invest a lump sum, and LIC provides a fixed monthly payout, much like interest income from an FD but with potentially higher returns.
How the Monthly Income Works
In this plan, the invested amount generates regular monthly payouts that act as a source of income. For example, if you invest ₹2 lakh, you can receive around ₹13,000 every month, depending on the selected term and the interest rate applicable at the time of purchase.
Unlike market-linked plans, your payout remains consistent throughout the policy term, ensuring predictable cash flow. The total payout over the period is higher than what a standard FD or savings account would typically offer, thanks to LIC’s structured return mechanism.
Why the LIC FD-Style Plan Appeals to Investors
Many investors prefer LIC because of its track record and government backing. This new plan has gained popularity for several reasons:
- Assured Monthly Income – Ideal for retirees, homemakers, and those seeking regular cash flow.
- Guaranteed Returns – No market risk; payouts are predetermined.
- Flexible Tenures – You can choose a term based on your financial goals.
- LIC Trust Factor – The backing of a government-owned financial institution adds security.
- Tax Efficiency – Depending on the plan, investors may claim tax deductions or enjoy tax-free maturity benefits.
This makes the scheme a practical choice for anyone looking for a balance between security and steady earnings.
Comparing LIC’s New FD Scheme with Bank FDs
Here’s how the LIC New FD-style scheme stacks up against a traditional bank fixed deposit:
| Feature | LIC FD-Style Plan | Traditional Bank FD |
|---|---|---|
| Return Type | Guaranteed monthly income | Fixed interest (quarterly or annually) |
| Average Yield | 8–9% approx. (effective) | 6.5–7.5% |
| Payout Option | Monthly guaranteed payout | Periodic or at maturity |
| Safety | Backed by LIC (Government of India) | Backed by bank and DICGC insurance up to ₹5 lakh |
| Liquidity | Can be surrendered with conditions | Can be broken with penalty |
| Tax Benefits | Available under certain sections | Limited to 5-year tax-saver FDs |
As the table shows, LIC’s product is designed more for income generation rather than just capital accumulation, making it particularly suitable for investors who need regular earnings.
How to Invest in LIC’s New FD Scheme 2025
Investing in this plan is simple and can be done both online and offline.
- Visit the nearest LIC branch or their official website.
- Select the Monthly Income Plan / FD Scheme 2025 option.
- Choose your investment amount and tenure (3, 5, or 10 years).
- Submit your KYC documents and payment.
- Once approved, you’ll start receiving your monthly payouts from the following month.
Before investing, confirm the latest payout rates and read the policy brochure carefully, as returns may vary slightly depending on the chosen variant.
Best Practices Before You Invest
To make the most of the LIC FD-style plan, keep these points in mind:
- Compare LIC’s scheme with top bank FDs to see which offers better post-tax returns.
- Ensure that the payout option (monthly or quarterly) aligns with your financial needs.
- Consider your liquidity requirements early withdrawals may reduce benefits.
- Consult a financial advisor if you plan to invest a large sum for monthly income.
Conclusion
The LIC New FD Scheme 2025 offers a stable and predictable income stream, ideal for those seeking guaranteed monthly returns. An investment of ₹2 lakh yielding approximately ₹13,000 per month demonstrates its strong potential compared to regular bank deposits.
For conservative investors and retirees, this scheme combines the safety of LIC with attractive fixed returns a rare mix in today’s financial landscape.
FAQs
When is the LIC New FD Scheme 2025 available for investment?
The plan is open for subscriptions from early 2025 through LIC’s online portal and authorized branches.
Is this scheme the same as a traditional FD?
No. It functions like an FD in terms of guaranteed returns but is technically an LIC income plan, offering structured monthly payouts.
Can I withdraw my investment early?
Yes, but early withdrawals may attract penalties or reduced benefits depending on the plan terms.