LIC Housing Finance Fixed Deposit Rates 2021

LIC Housing Finance Limited (LIC HFL), one of the biggest housing finance companies in India, offers a number of Fixed Deposit schemes to suit the needs of every type of investor. LIC Housing Finance FD is offered under the Sanchay scheme. LIC offers competitive interest rates and a good rate of return on the overall investment, among other benefits. This is public deposit scheme that was launched in 2007 that is rated FAAA/Stable by CRISIL. At present, the highest rate of interest paid on LIC HFL FDs is 5.75% p.a. for the yearly option of both cumulative and non-cumulative term deposits held for a period ranging from 3 years to 5 years for deposits less than Rs.20 crore.

LIC FD Rates

Key Highlights

  • The minimum amount of deposit for monthly option is Rs.2 lakh.
  • The minimum amount of deposit for yearly option is Rs.10,000.
  • Additional deposits can be made in the multiples of Rs.10,000 for monthly deposits and Rs.1,000 for yearly deposits.
  • The interest rate for senior citizens is additional 0.25% of deposits from Rs.20,000 to less than Rs.20 crore.

LIC HFC Public Deposit Scheme: Less than Rs.20 crore

Tenure Monthly Option for
Non-Cumulative Deposits
Yearly Option for Cumulative and
Non-Cumulative Deposits
1 year 5.50% 5.65%
18 months 5.50% 5.65%
2 years 5.50% 5.65%
3 years 5.60% 5.75%
5 years 5.60% 5.75%

Note: The interest rates are applicable w.e.f. 8 October 2020.

LIC HF Public Deposit Scheme - Interest Rates on Deposits of Rs.20 crore and Above

Tenure Monthly Option for
Non-Cumulative Deposits
Yearly Option for Cumulative and
Non-Cumulative Deposits
1 year 4.90% 5.00%
18 months 4.90% 5.00%
2 years 4.90% 5.00%
3 years 5.00% 5.10%
5 years 5.00% 5.10%

Note: The interest rates are applicable w.e.f. 8 October 2020.

LIC HF Corporate Deposit Scheme – Interest Rates on Deposits Below Rs.20 Crore for Cumulative and non-Cumulative Deposits

Tenure Interest Rate % p.a.
1 year 5.65%
18 months 5.65%
2 years 5.65%
3 years 5.75%
5 years 5.75%

Note: The interest rates are applicable w.e.f. 8 October 2020.

LIC HFL offers good interest rates on their FD schemes. At present, the interest rates offered ranges from 5.00% to 5.75% on all individual 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.

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.

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
  • Individual
  • Joint account Minor with a guardian
  • Partnership
  • Company
  • Any association or Institute
  • NRIs
Documents Required
  • Application Form
  • Depositor’s photograph (2 copies)
  • Identity proof & Address proof as per KYC Norms
  • PAN Card copy/ Form 60 or 61
  • Aadhaar Card Details
Benefits of a LIC HFL FD
  • Nomination facility
  • Automatic renewal option after maturity
  • Part withdrawal facility on the deposits
  • Avail loan

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.


  1. Is the interest rate different for corporate deposit schemes and general deposit schemes in LIC HFL?

    No. There is no difference in the interest rates that are offered.

  2. What are the interest payout options available?

    For all cumulative term deposits, the interest will be paid and compounded on an annual basis and the customer will be paid at the time of maturity. For all non-cumulative time deposits, interest will be paid annually on March 31st, each year.

  3. How is the interest paid to the account holder?

    The interest is directly credited to the bank account of the FD holder through ECS.

  4. What are the different interest payout options available?

    Customers can opt for both cumulative and non-cumulative term deposits.

  5. Can I open a joint account?

    Yes. However, interest payment will only be made in the name of the first deposit holder.

  6. Can NRIs open an FD with LIC HFL?


  7. What is the maximum duration allowed for NRIs?

    NRIs can hold an FD for a duration of 3 years as per existing norms.

  8. What is Sanchay?

    Sanchay is the name of the public fixed deposit scheme offered by LIC Housing Finance Limited.

  9. What are the consequences if you do not provide PAN card details while applying for the FD?

    The following will be the consequences:

    • TDS will be deducted at a higher percentage of 20% as against the normal 10%
    • TDS certificate will not be issued
    • You may not receive TDS credit from the Income Tax department
    • All tax exemption certificates will be deemed null and invalid
  10. Are all senior citizens eligible for a higher rate of return?

    Yes. Senior citizens will be paid more than regular individuals upon providing the valid age proof documents.

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