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What is the Highest Interest Rate for LIC?

Published in LIC Housing Finance Fixed Deposits 2 mins read

The highest interest rate offered by LIC Housing Finance Limited (LIC HFL) on its Fixed Deposits (FDs) is 7.75% per annum. This specific rate applies to the general public for yearly cumulative deposits held for a tenure of 5 years, for deposit amounts less than Rs. 20 crore.

Understanding LIC HFL Fixed Deposit Rates

LIC HFL, a prominent housing finance company promoted by Life Insurance Corporation of India (LIC), offers competitive interest rates on its fixed deposits. These deposits are a popular savings option, providing a fixed return over a set period. It's important to note that these rates are for Fixed Deposits offered by LIC Housing Finance Limited, distinct from interest rates associated with LIC's life insurance policies or other investment products directly from Life Insurance Corporation of India.

The rates vary based on several factors, including whether the interest is cumulative or non-cumulative, the tenure of the deposit, and the amount deposited.

Key Details of LIC HFL FD Rates (for General Public)

The interest rates for LIC HFL Fixed Deposits vary based on the type of interest payment and tenure. The following table summarizes the highest rates offered as per recent information:

Deposit Type Interest Rate (p.a.) Conditions
Cumulative (Yearly Option) 7.75% For general public, 5-year tenure, deposits < ₹20 Cr
Non-Cumulative 7.50% For general public, 5-year tenure, deposits < ₹20 Cr
  • Cumulative Fixed Deposits: In this option, the interest earned is reinvested along with the principal amount, allowing your money to grow exponentially through compounding. This means you receive the total principal plus accumulated interest at maturity.
  • Non-Cumulative Fixed Deposits: With this option, interest is paid out periodically (e.g., monthly, quarterly, half-yearly, or annually) as per the depositor's preference. This is suitable for individuals who require regular income from their investments.

These rates are specifically for the general public and for deposits under Rs. 20 crore. Senior citizens typically receive higher interest rates than the general public.

For the most current interest rates and detailed terms and conditions, it is always advisable to check the official LIC Housing Finance website or reliable financial portals such as BankBazaar, which frequently update this information.