LIC Housing Finance FD interest rates with effect from May 24; now earn up to 6.6%


(LIC HFL) revised its fixed deposit (FD) interest rates with effect from May 24, 2022. The interest rates on all individual deposits currently vary from 5.60 percent to 6.60 percent. A customer can choose from a variety of flexible tenure choices. A minimum of one year and a maximum of five years are available.

Who can apply for LIC HFL FDs

Residents, non-resident individuals, minors through guardians, HUFs, partnership firms, Co-operative societies, Association of Persons, Proprietary Concern, Trusts, and others as determined by management will be eligible to open this public deposit.

HFL Cumulative Public Deposit

Under the Cumulative Public Deposit Scheme, tenure options include one year, 18 months, two years, three years, and five years. Interest will be compounded annually and paid concurrently with the principal amount at maturity, after deducting any applicable taxes.

Minimum amount is Rs. 20,000 and multiples of Rs. 1,000/- thereafter.

Cumulative Public Deposit interest rate

1 year: 5.60%

18 months: 5.90%

2 years: 6.25%

3 years: 6.40%

5 years: 6.60%

Non-Cumulative Public Deposit

Under the Non-Cumulative Deposit Scheme, there are options for monthly and annual interest payments. Under the Non-Cumulative Public Deposit Scheme, tenure options include one year, 18 months, two years, three years, and five years.

Under the annual option, on March 31 each year interest will be paid. Under the monthly option, on the 1st of the month and on the 31st of the month.

Non-Cumulative Public Deposit interest rate

1. Monthly option for 1 year deposit: 5.45%

Yearly option for 1 year: 5.60%

2. Monthly option for 18 months deposit: 5.75%

Yearly option for 18 months: 5.90%

3. Monthly option for 2-year deposit: 6.10%

Yearly option for 2 years deposit: 6.25%

4. Monthly option for 3 years deposit: 6.25%

Yearly option for 3 year deposit: 6.40%

5. Monthly option for 5 years deposit: 6.45%

Yearly option for 5 year deposit: 6.60%

According to the website, these are important points to note

  • Interest will be paid from the date funds are credited to LICHFL’s bank account by cheque or RTGS/NEFT/IMPS transfer.
  • Only cheques and online transfers (RTGS/ NEFT/IMPS) will be accepted as forms of payment.
  • Senior persons get an extra 0.25 percent interest rate on deposits up to Rs. 20 crore for all tenures.
  • Interest is paid on an annual basis via electronic transfer or interest warrants, as specified by the depositor, after subtracting any relevant taxes.
  • Monthly Interest Payment – Only by electronic transfer for Non-Cumulative Public Deposits after deducting any relevant taxes.
  • Under the Cumulative Public Deposit Scheme, interest will be compounded annually.



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