The viral claim that a “new LIC FD” pays ₹6,500 every month on a ₹1 lakh deposit is incorrect because that would imply a 78% annual return, far beyond LIC Housing Finance’s Sanchay Public Deposit monthly non‑cumulative rates for 2025. The product usually referenced is LIC Housing Finance Ltd (LIC HFL) Sanchay corporate FD under the monthly payout option, which credits monthly interest while the principal stays locked until maturity across tenures like 1, 2, 3, and 5 years.
“LIC New FD Scheme: Earn ₹6,500 Monthly On ₹1 Lakh Investment”: under LIC HFL Sanchay’s non‑cumulative monthly option, the latest regular depositor slabs hover around 6.50% for 1 year and up to about 6.70% for 5 years as reflected in current 2025 grids, which means ₹1,00,000 yields roughly ₹542–₹558 per month before tax, not ₹6,500. The idea of ₹6,500 every month from just ₹1 lakh is a mismatch with how monthly payout FDs work because the annual rate is simply apportioned into monthly credits, and even senior citizen bumps don’t come remotely close to that figure in 2025.
LIC New FD Scheme
The headline promise of “LIC New FD Scheme: Earn ₹6,500 Monthly on ₹1 Lakh Investment” doesn’t align with how LIC Housing Finance’s Sanchay monthly fixed deposit actually works in 2025, because non‑cumulative monthly payouts on regular deposits sit around 6.50%–6.70% per annum, which yields roughly ₹542–₹558 per month on ₹1 lakh before tax rather than ₹6,500. If the goal is a ₹6,500 monthly inflow from a similar monthly rate band, plan for a substantially higher principal typically in the ₹11.6–₹12 lakh range and remember the operational minimum of ₹2,00,000 for the monthly payout mode, along with standard KYC, potential TDS on interest, and penalties on premature closure.
How The Monthly Option Really Pays
Monthly payout FDs divide the annual interest rate into monthly credits, so at 6.70% p.a., ₹1 lakh earns about ₹558 per month before tax, and TDS may apply as per thresholds and PAN status. Senior citizen rates are a touch higher than regular slabs, but even those uplifted rates don’t approach ₹6,500 per month on ₹1 lakh in 2025.
Why ₹6,500/Month On ₹1 Lakh Is Unrealistic
₹6,500 per month equals ₹78,000 a year on ₹1,00,000, which translates to an implausible 78% annual return that no regulated corporate FD pays in India. With LIC HFL’s monthly non‑cumulative bands around 6.50%–6.70% for regular depositors, realistic monthly income on ₹1 lakh remains in the ₹542–₹558 range before tax.
Current Interest Bands And Tenure Choices
For regular customers, non‑cumulative monthly slabs are typically about 6.50% (1 year), 6.60% (2 years), 6.65% (3 years), and 6.70% (5 years) in late 2025. Cumulative yearly options can show slightly higher comparable APYs, but monthly payout variants usually list a tad lower due to payout frequency.
Minimum Amounts And Practical Considerations
Because the monthly option’s minimum is ₹2,00,000, anyone planning monthly income should budget at least this threshold and then scale in ₹10,000 steps to meet a target inflow. The annual option has a lower minimum (₹20,000), but it doesn’t fit a monthly income objective since interest is paid at period end rather than monthly.
Liquidity, Premature Closure, And Loans
If you need funds early, premature closure is allowed after 3 months but at a penal rate versus your contracted slab, which reduces realized return. For short‑term cash needs, a loan against the FD (up to about 75% of deposit) may preserve the income stream better than breaking the deposit.
Taxation And TDS Basics
Monthly interest adds to taxable income per your slab and may attract TDS based on thresholds and PAN submission rules in the financial year of receipt. The FD principal isn’t tax‑free and interest remains fully taxable, so always plan cash flows on a post‑tax basis.
Who Should Consider Sanchay Monthly
Conservative savers who value predictable monthly inflows and high credit quality from a AAA‑rated issuer may find the non‑cumulative monthly option a fit. Retirees or families covering regular bills often prefer steady credits while keeping principal intact till maturity.
Example: Targeting ₹6,500/Month Realistically
At around 6.70%, a simple annualized back‑of‑the‑envelope suggests roughly ₹9.7 lakh to generate ₹6,500 a month before translating to the monthly credit method, but because monthly credits reflect the annual rate divided across months, most investors should budget closer to ₹11.6–₹12 lakh as a practical working figure. Remember the monthly mode’s ₹2 lakh minimum and plan increments in ₹10,000 steps to fine‑tune the target inflow.
Everything About LIC Fixed Deposit Monthly Income Plan
- This is a corporate fixed deposit from LIC Housing Finance Limited under the Sanchay brand, distinct from LIC of India’s insurance policies and not a bank FD.
- Monthly non‑cumulative slabs for regular citizens are around 6.50%–6.70% depending on tenure, with senior citizen variants modestly higher.
- Official terms outline higher minimums for monthly/quarterly payout modes, standard KYC, loan‑against‑deposit availability, and premature closure rules.
The headline “LIC New FD Scheme: Earn ₹6,500 Monthly On ₹1 Lakh Investment” is misleading; LIC HFL Sanchay’s monthly non‑cumulative slabs for regular depositors sit around 6.50%–6.70% in 2025, which on ₹1 lakh translates to about ₹542–₹558 per month before tax, and the monthly mode itself requires at least ₹2 lakh principal.
