The name Life Insurance Corporation of India (LIC) evokes thoughts of trust and security. But did you know that LIC offers not only insurance but also excellent investment schemes like fixed deposits (FDs)? The FD scheme offered by LIC Housing Finance Limited is an excellent option for investors who want guaranteed and high returns on their money without any risk. Let's learn more about this special FD scheme from LIC, its interest rates, and how much you will earn if you invest ₹2 lakh in it. What is LIC Housing Finance's FD scheme? This is a corporate fixed deposit scheme operated by LIC Housing Finance Limited, a subsidiary of LIC.

In this, like bank FD, money is deposited for a fixed period, on which you get attractive interest. You can invest in this scheme for a minimum period of 1 year and a maximum period of 5 years. Investors get two types of options in this: Callable: In this, you can withdraw your money even before maturity if needed. Non-Callable: In this, you can withdraw the money only after maturity, on which you usually get a little higher interest. How much interest is being received? (Interest Rates) LIC HFL is offering better interest rates on its fixed deposits than the banks.

The interest rates vary for different tenures. Senior citizens (above 60 years) are given an additional interest of 0.25% over the normal rates, which make it even more attractive. The current applicable interest rates are as follows (on deposits up to ₹20 lakh): For 1 year: 7.25% For 18 months: 7.35% For 2 years: 7.60% For 3 years: 7.75% For 5 years: 7.75% What will be the return on an investment of ₹2 lakh in 5 years? If you deposit ₹2 lakh in this scheme for 5 years, you will get huge benefits on maturity. Let us understand its complete calculation. Investment Amount: ₹2,00,000 Tenure: 5 years Interest Rate (General Citizen): 7.75% p.a. Calculation: After 5 years, with compound interest, you will get approximately ₹2,92,750 on maturity.

This means your interest-only earnings will be ₹92,750. Meanwhile, if a senior citizen invests ₹2 lakh, they will receive interest at the rate of 8.00% (7.75% + 0.25%). In this case, they will receive approximately ₹2,98,965 at maturity, of which ₹98,965 will be interest. Other key features of the scheme:

 Minimum investment: You can start investing in this scheme with a minimum of ₹20,000. Maximum investment: There is no maximum investment limit.

Loan facility: You can also take a loan up to 75% of the deposit amount against your FD. Secure investment: With the trust of LIC, this scheme is completely safe. If you are looking for an investment option that keeps your money safe and provides better returns than a bank, LIC Housing Finance's FD scheme could be an excellent opportunity for you.