In 2025, the investor comes to the fore seeking safer and dependable income opportunities. Amongst such prevalent choices is the option of LIC Fixed Deposits; how you could supposedly earn ₹6,500 per month out of a ₹1 lakh LIC FD endured as a hot topic. This article will substantiate the basis of all such claims and will thus demonstrate the actual income possible through such FD schemes from LIC in 2025.
LIC FD Interest Rates in 2025
LIC Housing Finance Ltd (LIC HFL) offers fixed deposits, which command some of the highest safety and stability ratings. Interest rates for 2025 across the board averaged from about 6.5 percent to 6.9 percent annually depending on the tenure chosen.
The interest is for monthly pay-outs in a simple form, in other words, with no compounding. However, this makes LIC FDs a perfect investment to draw a consistent and steady income regularly.
Can you get ₹6,500 per month out of ₹1 Lakh?
The claim of earning ₹6,500 per month on a ₹1 lakh capital deposit is mathematically out of the box under prevailing FD rates. The highest rate available at the moment is around 6.9% per annum, which calculates to about ₹575* per month on a deposit of ₹1 lakh.
The disparity in remuneration is one-twelveth of the total annualized interest received on the deposit. This fitful expectation of ₹6,500 monthly from such a tiny deposit is unrealistic and mostly deceptive.
Net Income awaited
At the rate of LIC FDs, a ₹1 lakh deposit will yield between ₹540 and ₹575 payment. However, although a fraction of what it is expected to, this amount is secured and stable, thus making it formidable in case of any market speculation. An investment of close to ₹11 lakh would be needed to gain nearly ₹6,500 monthly on FD savings accounts as of today.
Conclusion
Although LIC Fixed Deposits are generally considered safe and reliable investment vehicles, generating an annual 6 to 7% interest rate for a period of over three years, real estate investments become advantageous in their own right.