Investors searching for safe and stable returns in 2026 are once again looking at fixed income options. One offer creating buzz is the claim that investing ₹1.5 lakh in an LIC-backed fixed deposit scheme can generate ₹9,750 in guaranteed interest.
But how does this actually work? Is the return fixed, and what should investors know before putting their money in?
Here is a complete breakdown of the numbers, eligibility, and return structure.
What Is the LIC FD Scheme in 2026?
Life Insurance Corporation offers fixed deposit plans through LIC Housing Finance and other associated financial arms. These fixed deposits typically provide:
Fixed tenure options
Guaranteed interest rates
Low-risk investment structure
Periodic or cumulative payout options
Unlike market-linked investments, fixed deposits promise predetermined returns for the chosen tenure.
How ₹1.5 Lakh Can Generate ₹9,750 Interest
If an FD offers an interest rate of around 6.5 percent annually, investing ₹1.5 lakh for one year would generate approximately ₹9,750 in interest.
Here is the basic calculation:
₹1,50,000 × 6.5% = ₹9,750 annual interest
The exact interest depends on:
Tenure selected
Interest payout frequency
Senior citizen bonus rates
Current FD rate applicable in 2026
Interest rates are subject to revision based on market conditions.
Tenure Options Available
LIC fixed deposits generally offer flexible tenure choices ranging from 1 year to 5 years or more.
Short-term deposits provide liquidity but may offer slightly lower returns. Longer tenures can lock in higher rates, depending on prevailing policy.
Investors should compare cumulative versus non-cumulative options based on income needs.
Is the Return Truly Guaranteed?
Fixed deposit interest is guaranteed for the chosen tenure once the deposit is booked. However, the rate offered at the time of investment determines your earnings.
This means if you invest when rates are higher, your return is locked at that rate until maturity.
Unlike mutual funds or stock investments, FD returns are not subject to market volatility.
Who Should Consider This Investment?
An LIC fixed deposit may suit:
Conservative investors
Senior citizens seeking stable income
Individuals looking for predictable short-term returns
Those diversifying from market-based investments
It may not be ideal for investors seeking high-growth returns beyond inflation.
Tax Implications to Consider
Interest earned on fixed deposits is taxable under income tax rules.
If total interest exceeds specified thresholds, TDS may apply. Investors should factor in post-tax returns before committing funds.
Senior citizens may benefit from higher TDS exemption limits.
Things to Check Before Investing
Before investing ₹1.5 lakh, confirm:
Current applicable interest rate
Minimum and maximum deposit limits
Premature withdrawal penalties
Senior citizen additional interest benefits
Credit rating of the issuing entity
Reviewing official scheme details ensures clarity on lock-in terms and payout structure.
Is 6.5 Percent Competitive in 2026?
FD rates vary across banks and NBFCs. While 6.5 percent is stable, some institutions may offer slightly higher rates depending on tenure and risk profile.
Comparing multiple options before investing helps maximize returns while maintaining safety.
Conclusion
Investing ₹1.5 lakh in an LIC fixed deposit scheme at approximately 6.5 percent interest can generate around ₹9,750 annually in guaranteed returns. For risk-averse investors, this offers predictable income and capital protection.
However, checking updated interest rates, tax impact, and tenure conditions before investing is essential. Smart comparison and financial planning can help you make the most of fixed income opportunities in 2026.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Interest rates and scheme terms may change. Always verify details with official LIC sources before investing.