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LIC’s New Senior FD Scheme: A Smart Way to Earn Monthly Without Risk

In a world where financial security during retirement is more important than ever, LIC (Life Insurance Corporation of India) has introduced a new Fixed Deposit (FD) scheme specifically designed for senior citizens. This scheme offers not just the safety and trust associated with LIC but also provides a regular monthly income—a much-needed financial cushion for those in their golden years.

If you’re looking for risk-free investment options with guaranteed returns and stable income, LIC’s latest FD plan could be the right choice. Let’s break down what makes this new senior FD scheme an attractive proposition for retirees.

What Is LIC’s New FD Scheme for Senior Citizens?

LIC’s FD scheme for senior citizens is a fixed-income investment plan that offers regular monthly interest payouts, catering to retirees who prefer steady cash flow over long-term wealth accumulation. It’s designed to be both low-risk and predictable, giving senior investors peace of mind.

Though technically not called an “FD” by LIC—it may be offered under names like LIC’s Jeevan Shanti or similar pension/annuity plans—it functions much like a fixed deposit. The capital is invested safely, and interest (or annuity) is paid monthly to the policyholder.

Key Features of LIC’s New Senior FD Scheme

Monthly Income Option
Investors receive interest or annuity payouts every month, making it ideal for those who rely on fixed sources of income post-retirement.
Guaranteed Returns
LIC offers guaranteed returns for the tenure of the plan, ensuring stability regardless of market fluctuations.
Capital Safety
Being a government-backed corporation, LIC is among the most trusted financial institutions in India, offering a high degree of capital protection.
Minimum & Maximum Investment
- Minimum Investment: ₹1.5 lakh (varies by plan)
- Maximum Investment: No upper limit for some schemes
- Suitable for both moderate and high-value investors.
Eligibility
- Age: 60 years and above
- Can be purchased individually or jointly (in some cases)
Flexible Tenure
Depending on the scheme, options range from 5 years to lifetime income.
Nomination Facility
Allows easy transfer of benefits to a legal heir or nominee.

How Does the Monthly Income Work?

Once you invest a lump sum in LIC’s senior citizen FD plan, you start receiving monthly interest or annuity after a chosen deferment period (if any). For example:

Invest ₹10 lakhs at an effective return rate of 7.5%
You could earn a monthly income of around ₹6,250 (before tax)

The payout amount may vary depending on the interest rate, tenure, and plan chosen. Unlike traditional bank FDs, some LIC schemes offer lifetime monthly payouts.

Who Should Consider This Scheme?

This scheme is perfect for:

Retired Individuals looking for steady income
Senior Citizens with low risk appetite
Those who want capital safety over high returns
Investors who prefer monthly cash flows instead of long lock-ins
Parents or family members planning retirement gifts or support plans

Benefits Over Traditional Bank FDs

Feature	LIC Senior FD Scheme	Traditional Bank FD
Income Frequency	Monthly	Quarterly or on maturity
Safety	High (LIC is govt-backed)	Depends on bank’s credit
Interest Rates	Comparable or slightly higher	Varies across banks
Tenure	Long-term or lifetime	Up to 10 years
Tax Benefits	Section 80C in some cases	Section 80C applicable

Taxation Details

Interest/Annuity Payouts are taxable under “Income from Other Sources”
No TDS on certain plans, but income must be declared
No special senior citizen exemptions, unless covered under other schemes
Always consult a tax advisor before investing

LIC’s Trust Factor

LIC has been a pillar of financial security in India for decades. With the government holding a majority stake, its schemes are seen as ultra-safe, making it the preferred choice for risk-averse investors, especially senior citizens.

LIC also has pan-India service centers and a robust customer support system. Whether it’s managing policies, changing nominees, or updating bank details, their assistance is reliable and accessible.

How to Apply for LIC’s Senior FD Plan?

You can invest in the scheme by:

Visiting the nearest LIC branch
Applying through a LIC agent
Online on LIC’s official portal

Make sure to carry:

Aadhaar and PAN card
Bank passbook for ECS mandate
Proof of age and address
Passport-sized photos

Expert Tips Before You Invest

Compare multiple LIC plans under annuity/income options
Read all terms and conditions—some plans may have lock-in periods
Consider diversifying your portfolio: Combine this with PMVVY or SCSS
Think long-term: Choose the monthly payout option only if you need regular income, not for short-term parking

Conclusion

LIC’s new senior FD scheme is more than just a fixed deposit—it’s a financial lifeline for retirees looking for consistent income and safety. With LIC’s unmatched trust, assured returns, and hassle-free monthly payouts, this plan stands out as one of the best low-risk investment options for senior citizens in India.

Whether you’re planning for your own retirement or helping a loved one build financial stability, this scheme deserves serious consideration. In a volatile economic environment, certainty and security matter more than ever—and LIC delivers both.

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