What is the LIC rate?

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LIC Housing Finance fixed deposit interest rates range from 6.70% to 6.90% for regular citizens and 6.95% to 7.15% for senior citizens, depending on the tenure.

(Note: If you meant the Life Insurance Corporation of India (LICI) stock share price, it is trading around ₹388.70 – ₹391.85.)

📊 LIC Housing Finance FD Rates

  • 1-year tenure: 6.70% to 6.95%
  • 2-year tenure: 6.80% to 7.05%
  • 3- to 5-year tenure: 6.85% to 7.15%

What is the current LIC interest rate?

The current interest rates for LIC Housing Finance Fixed Deposit range from 6.50% to 6.90% per annum for regular citizens and up to 7.15% for senior citizens, depending on the tenure.

Fixed Deposit (FD) Rates

  • 1 Year: 6.50% p.a.
  • 3 Years: 6.65% p.a.
  • 5 Years (Highest Rate): 6.90% p.a. for regular citizens
  • Senior Citizens: Get an extra 0.25% p.a. (up to 7.15% p.a. on eligible tenures).

Other LIC Rates

  • Home Loans: Start at 7.15% p.a. onwards for qualified applicants.
  • Loan Against Policy: Typically ranges between 9.00% and 10.00% p.a.

What is the current rate of LIC?

The current share price of the Life Insurance Corporation of India (LIC) is ₹391.85, while its policy loan interest rate ranges from 9.00% to 10.00% per annum.

Share Price Details (LICI)

  • Last Traded Price: ₹391.85 on the NSE/BSE
  • Day Range: ₹386.00 – ₹396.75
  • 52-Week Range: ₹360.75 – ₹468.48
  • Market Capitalization: ~₹4,95,690 Crore

Loan Interest Rates

  • Policy Loan Rate: 9.00% – 10.00% per year depending on your specific insurance policy.
  • Comparison: This is often lower than the 10.00% – 15.00% charged by traditional banks for loans against insurance policies.

What is the percentage of LIC?

The phrase "LIC percentage" can refer to several different metrics depending on whether you mean policy returns, market share, government stake, or agent commissions.

Key LIC Percentages

  • Market Share: LIC holds over 66.2% of the market share in new business premiums in India.
  • Government Ownership (Promoter Stake): The Government of India owns 96.50% of LIC.
  • Return on Equity (ROE): LIC's ROE stands at 37.8% (with a 3-year average around 45.6%).
  • Dividend Yield: LIC stock offers a dividend yield of approximately 2.55%.
  • Policy Returns (IRR): Traditional participating endowment and money-back plans typically yield an Internal Rate of Return (IRR) of 3% to 6% per annum, while equity-linked Unit Linked Insurance Plans (ULIPs) historically range between 8% and 12% per annum over the long term (before charges).
  • Agent Commissions: First-year agent commissions generally range from 10% to 90% of the collected premium depending on the specific policy type and term.

Is LIC better or fd?

Whether a Fixed Deposit (FD) or an LIC (Life Insurance Corporation) policy is better depends on your core financial goal: FDs are better for guaranteed short-term savings and liquidity, while LIC traditional or endowment plans are designed for long-term family protection with modest savings. You can learn more about how they compare as pure savings tools from InsuranceDekho.

Fixed Deposit (FD)

  • Returns: Fixed, pre-determined interest rate known at the start.
  • Liquidity: High. You can withdraw money early, though a small penalty applies.
  • Tenure: Flexible short, medium, or long terms (7 days to 10 years).
  • Tax: Interest earned is fully taxable according to your income tax slab.

LIC (Life Insurance Plans)

  • Protection: Provides a life cover safety net for your family if you pass away.
  • Returns: Generally lower or modest returns on traditional savings plans, often tied to bonuses.
  • Liquidity: Low. Long lock-in periods (3 to 5 years), and withdrawing early can lead to major capital loss.
  • Tax: Premium payments may offer deductions, and maturity/death payouts are often tax-free under specific sections.

Summary: Which should you choose?

  • Choose an FD if you want safe, predictable growth and quick access to your cash.
  • Choose LIC if your primary goal is insuring your life to protect dependents, with savings as a secondary benefit.

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9 related questions found

Which bank gives 9.5% interest on FD?

Unity Small Finance Bank and certain other small finance institutions offer up to 9.5% interest on fixed deposits specifically for senior citizens on select tenures.

Banks Offering Up to 9.5% FD Rates

  • Unity Small Finance Bank: Offers up to 9.5% interest for senior citizens on a specific tenure of 1001 days (general customers get 9%).
  • North East Small Finance Bank: Offers high returns reaching up to 9.5% for senior citizens on specific long-term or 3-year tenures.
  • Airtel Payments Bank / Airtel Finance: Advertises fixed returns up to 9.5% through partner digital offerings for specific tenure limits.

Key Things to Know

  • Senior Citizens Only: The 9.5% rate is typically reserved for senior citizens, while general customers usually receive about 0.5% to 0.75% lower.
  • Small Finance Banks: Small finance banks provide these high rates to attract depositors, and they are insured up to ₹5 lakh by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
  • Tenure Specific: The highest rate applies only to exact maturity periods, such as 1001 days.

What is the FD interest rate in LIC?

LIC Housing Finance (LIC HFL) offers fixed deposit (FD) interest rates ranging from 6.70% to 7.35% per annum for regular customers on deposits up to ₹3 crore.

Interest Rates for Deposits Up to ₹3 Crore (Cumulative/Non-Cumulative)

  • 1 Year: 6.70% p.a.
  • 15 Months: 6.75% p.a.
  • 18 Months: 6.85% p.a.
  • 2 Years: 6.95% p.a.
  • 3 Years: 7.20% p.a.
  • 5 Years: 7.35% p.a.

Key Details

  • Senior Citizens: Earn an additional 0.25% p.a. on deposits up to ₹3 crore.
  • Safety Rating: The Sanchay Public Deposit Scheme carries a AAA/Stable rating from CRISIL.
  • Minimum Deposit: Generally ₹20,000 for standard applications (or ₹10,000 via certain channels depending on the specific branch/plan).
  • Tax Benefit: The 5-year tenure option qualifies for tax deductions under Section 80C.

Which LIC is best in India?

The Life Insurance Corporation of India (LIC) is the top and largest life insurance company in India by market share, assets, and premium collection.

Top Life Insurance Companies in India

  • Life Insurance Corporation of India (LIC): The state-owned market leader with the highest brand value and largest customer network.
  • SBI Life Insurance: A leading private insurer backed by the State Bank of India with massive assets under management.
  • HDFC Life Insurance: A top private player known for diverse digital products and high claim settlement.
  • ICICI Prudential Life Insurance: A major multinational joint venture offering robust investment and protection plans.
  • Axis Max Life Insurance: A popular private insurer recognized for strong financial stability and high claim ratios.

Is it good to buy LIC today?

Buying LIC (Life Insurance Corporation of India) shares at the current price of around ₹392 offers an attractive low valuation, but opinions on its growth potential are mixed.

Key Positives

  • Low Valuation: The stock trades at an attractive price-to-earnings (P/E) ratio of around 8.3, which is lower than many private sector peers.
  • Market Leader: LIC remains India's largest life insurer with over 60% market share in new business premiums.
  • Strong Financials: The company is debt-free with massive assets under management (AUM) exceeding ₹57 lakh crore and a high return on equity (ROE).

Key Risks

  • Slow Growth: On Reddit, opinions are mixed; some users note that due to its massive size, rapid multi-fold growth is difficult compared to faster-growing private insurers like SBI Life or HDFC Life.
  • Market Pressure: Private competitors continue to eat into traditional market segments, and the stock has traded below historical listing expectations. Some market experts suggest waiting for clearer quarterly guidance before making major commitments.

What is the LIC 10,000 per month policy?

The LIC Monthly Investment Plans refer to pension or retirement schemes where an investor contributes ₹10,000 per month to build a steady, guaranteed cash flow after retirement.

Key Details of the Scheme

  • Target Group: People who are age 60 or older looking for post-retirement financial security.
  • Contribution: An investment of ₹10,000 paid every month.
  • Payout: Provides a guaranteed monthly income stream, often structured for a duration like 10 years or lifetime depending on the exact annuity or pension variant chosen.
  • Goal: Offers steady cash flow and financial independence during retirement years.