LIC Housing Finance FD Rates

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Credit Rating Agency	Credit Rating
CRISIL	AAA/Stable

LIC Housing Finance FD Interest Rates 2024

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

Tenor	Cumulative Interest Rates (% p.a.)	Non-Cumulative Interest Rates (% p.a.)
		Monthly	Yearly
1 year	7.25	7.00	7.25
18 months	7.35	7.10	7.35
2 years	7.60	7.35	7.60
3 years	7.75	7.50	7.75
5 years	7.75	7.50	7.75

Features of LIC Housing Finance FD

• In the case of a cumulative deposit scheme: Minimum deposit amount: Rs. 20,000 and thereafter in multiples of Rs. 1,000
• In the case of a non-cumulative deposit scheme:
  • Under annual interest payment option: Minimum amount: Rs. 20,000 and thereafter in multiples of Rs. 1,000
  • Under monthly interest payment option: Minimum amount: Rs. 2 lakhs and thereafter in multiples of Rs. 10,000
• Depositors can opt for either monthly or yearly interest payment options under a non-cumulative scheme
• The interest is compounded annually and paid on maturity along with the principal under a cumulative scheme
• Interest payment under the non-cumulative scheme:
  • Under annual option: The interest is paid annually on 31st March
  • Under monthly option: The interest is paid on the 1st day of the month and on the 31st of March for the month of March
• The interest amount will be paid from the date of credit of funds to the bank account of LICHFL through cheque or RTGS/ NEFT/IMPS transfer
• Auto renewal facility is available
• Electronic payment facility is also available for principal and interest payment
• Additional interest rate of 0.25% p.a. is offered to senior citizen FD depositors (for deposits up to Rs. 20 crore) over regular FD rates
• Loan against FD facility is available against 75% of the deposit amount
• Deposits will be accepted only by way of cheque or through online transfer (RTGS/ NEFT/IMPS)
• Interest payment under the non-cumulative scheme:
  • Under annual option – Through interest warrants or electronic transfer as opted by the depositor after deducting the tax wherever applicable
  • Under monthly option – Only through an electronic transfer for Non – Cumulative Public Deposit after deducting the tax wherever applicable.
• Auto repayment facility is also available wherein the deposit amount will be credited on maturity to the designated bank account mentioned in the application form at the time of opening FD

Premature Withdrawal of Fixed Deposits

• Premature withdrawal of FD is at the sole discretion of LICHFL and cannot be claimed as a matter of right
• No interest will be paid if deposits are withdrawn within 3 months subject to lock-in period requirements
• If deposits are withdrawn after 3 months but before or up to 6 months, the interest payable will be 3% p.a. for the individual depositors and no interest will be paid in case of other categories of depositor.
• If deposits are withdrawn after 6 months but before the date of maturity, the interest will be paid 1% lower than the interest rate applicable to the deposit for which FD remained with the company. If the interest rate has not been prescribed for such period, then interest will be paid at 2% lower than the lowest rate at which deposits are accepted by the LICHFL or the rate applicable for the immediately lower prescribed period, as applicable.

LIC Finance FD Calculator

Using the FD calculator for LIC Housing Finance Fixed Deposit, interested applicants may check for the estimated maturity amount as per the prevailing interest rates. This tool is available at Paisabazaar.com and can be used free of charge any number of times. One may have a comparison among FD interest rates by various banks for different tenures and make a well-informed decision.

FAQs

Q. What is the highest LIC Housing Finance FD interest rate available to customers?

A. Depositors can earn the highest FD interest rates of up to 7.75% p.a. by opening FD in LIC Housing Finance. The FD interest rate is available for 3 years and 5 years of tenure.

Q. Is there a limit to the amount that can be invested in LIC FD?

Ans. No. There is a minimum amount of Rs 2 lakh for yearly option and Rs 20,000 for monthly option after which one may invest in multiples of Rs 10,000 and Rs 1,000, respectively.

Q. Should one go for FD if he/she is risk-averse?

Ans. FDs are safe investment instruments and thus a good option for people who do not wish to indulge in ever-fluctuating market risks.

Q. When can one apply for a loan against FD?

Ans. LIC HFL has a condition of 3 months (after the date of purchase), post which loans can be applied for.

Q. Can one may a joint investment?

Ans. Joint FD account can be opened with up to 3 members.

Q. Does the company provide a cumulative option for investment?

Ans. Yes. Customers can choose either from the cumulative option or the non-cumulative one.

Q. Is there a tax-saver option too?

Ans. If the investment is made for 5 years, it becomes a tax-saver FD.

Q. What benefit can a senior citizen avail by investing in LIC Housing Finance FD?

Ans. Senior citizens are provided with preferential interest rates on FD, i.e. extra 0.25% on what is offered to the regular customers.

Q. For which tenure can one earn the highest FD interest by LIC Housing Finance?

Ans. Currently, LIC Housing Finance is offering 7.75% for FD terms maturing in 3 years and 5 years. An additional 0.25% is offered to the senior citizens.

Q. Is LIC Housing Finance a government company?

Ans. LIC Housing Finance is a subsidiary of LIC with LIC being the major stakeholder. The company is wholly governed and controlled by LIC of India.