LIC Fixed Deposit Calculator
Calculate your returns under the LIC Housing Finance Limited (LIC HFL) Sanchay Public Deposit scheme. Compare cumulative compounding growth against non-cumulative periodic interest payouts.
₹1,39,601
Calculated using standard annual compounding over 5.00 years.
Under Section 194A of the Income Tax Act, TDS is applicable on fixed deposit interest payouts if interest exceeds **₹50,000** for senior citizens or **₹40,000** for others in a financial year. You can submit **Form 15G** or **Form 15H** to prevent tax deductions if your net annual income falls below the taxable exemption brackets.
| Year | Interest Accrued in Year | Cumulative Interest | End Balance |
|---|---|---|---|
| Year 1 | ₹6,900 | ₹6,900 | ₹1,06,900 |
| Year 2 | ₹7,376 | ₹14,276 | ₹1,14,276 |
| Year 3 | ₹7,885 | ₹22,161 | ₹1,22,161 |
| Year 4 | ₹8,429 | ₹30,590 | ₹1,30,590 |
| Year 5 | ₹9,011 | ₹39,601 | ₹1,39,601 |
LIC HFL Sanchay Deposit Scheme
LIC Housing Finance Limited (LIC HFL) offers the **Sanchay Public Deposit Scheme**, a highly secured corporate fixed deposit product.
- •High Rating Safety: Rated **FAAA/Stable** (or CRISIL AAA/Stable) by CRISIL, indicating the highest safety regarding timely interest and principal payments.
- •Flexible Options: Designed for resident individuals, HUFs, partnerships, and cooperative societies who prefer guaranteed, market-insulated returns.
- •Senior Citizen Benefits: An extra premium of **0.25% p.a.** interest rate boost is automatically credited to accounts held by depositors aged 60 years or older.
Cumulative vs. Non-Cumulative
Choose how your interest returns accrue and compound depending on your cash flow requirement:
Interest is compounded annually and paid along with the principal on maturity. Ideal for long-term compounding growth where immediate cash payouts are not required.
Interest is paid out periodically (Monthly, Quarterly, Half-Yearly, or Yearly). Ideal for retirees or investors seeking regular income streams. Note that monthly payouts require a ₹2 Lakh minimum deposit.
Fixed Deposit Tax Rules (TDS)
Fixed Deposit interest income is fully taxable according to your personal income tax slab rate. Here are the TDS thresholds:
- •TDS Threshold: LIC HFL is legally required to deduct 10% TDS under Section 194A if FD interest exceeds ₹40,000 (₹50,000 for Senior Citizens) in a financial year.
- •PAN Submission: Provide a valid PAN card when opening the FD. Failure to provide a PAN results in a punitive TDS rate of **20%**.
- •Form 15G/15H: If your total taxable income is below the exemption limit, submit Form 15G (General) or Form 15H (Seniors) to receive interest payouts without tax deduction.
CRISIL Credit Rating Safety
Corporate FDs carry higher interest rates than standard PSU bank deposits, but require credit checks:
- •AAA Rating: LIC Housing Finance Limited holds the highest safety credit rating of **CRISIL AAA/Stable** for its public deposits.
- •Risk Mitigation: The rating implies exceptionally low credit risk, guaranteeing that your principal capital and accrued interest payouts are fully protected.
- •Insulated Returns: Unlike mutual funds or stocks, Fixed Deposits offer guaranteed returns unaffected by market cycles and daily NAV fluctuations.
LIC HFL Sanchay FD Interest Rate Slabs (2026)
Review official interest rates applicable for cumulative and non-cumulative deposits up to ₹3 Crore.
| Tenure Period | General Public Rate (% p.a.) | Senior Citizen Rate (% p.a.) | Compounding Frequency |
|---|---|---|---|
| 1 Year (12 Months) | 6.70% | 6.95% | Compounded Annually |
| 1.5 Years (18 Months) | 6.75% | 7.00% | Compounded Annually |
| 2 Years (24 Months) | 6.80% | 7.05% | Compounded Annually |
| 3 Years (36 Months) | 6.85% | 7.10% | Compounded Annually |
| 5 Years (60 Months) * | 6.90% | 7.15% | Compounded Annually |
*Note: Interest rates are referenced for LIC HFL Sanchay Public Deposits up to ₹3 Crore (updated for 2026). Yield compounding is computed annually for cumulative mode, which increases effective maturity yields substantially on longer tenures.
Frequently Asked Questions (FAQ)
What is the minimum deposit amount required for LIC HFL Sanchay Fixed Deposits?
The minimum investment requirement is ₹20,000 for cumulative schemes and non-cumulative schemes (Quarterly, Half-Yearly, Yearly payouts). However, if you choose the Monthly payout option under the Non-Cumulative scheme, the minimum deposit is ₹2,00,000.
Are LIC Fixed Deposits eligible for tax deductions under Section 80C?
No. Unlike 5-year Tax Saving Bank Fixed Deposits, corporate public deposits (including LIC HFL Sanchay Deposits) do not qualify for tax deductions under Section 80C of the Income Tax Act. All interest earned is added to your taxable income and taxed according to your slab rates.
Can I withdraw my LIC Fixed Deposit prematurely before maturity?
Yes, premature withdrawals are permitted subject to rules: (1) No withdrawal is allowed within a 3-month statutory lock-in period from the date of deposit. (2) For withdrawals between 3 to 6 months, no interest is paid. (3) After 6 months, interest is paid at a rate 1% to 2% lower than the applicable rate for the period the FD actually ran.
Can I avail of a loan or overdraft facility against my LIC Fixed Deposit?
Yes. Depositors can avail of loans against their LIC HFL Sanchay deposits up to 75% of the accrued deposit value after completing a 3-month holding period. The interest rate on such loans is typically 2.00% higher than the rate being paid on the fixed deposit.
Does LIC HFL offer automatic renewal facilities for FDs?
Yes, you can choose the auto-renewal option at the time of opening the deposit. The deposit will automatically renew upon maturity for the same tenure at the prevailing interest rates, unless you submit written instructions for maturity payouts at least 15 days before the maturity date.
Who is eligible to invest in the LIC Fixed Deposit scheme?
Resident Individuals, Hindu Undivided Families (HUFs), Minors (represented by guardians), Partnership Firms, Association of Persons (AOPs), and Cooperative Societies are fully eligible to invest in LIC Housing Finance Fixed Deposits.
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