LIC’s New Fixed Deposit Scheme for Senior Citizens: A Comprehensive Guide

 

Retirement is a time to enjoy the fruits of your labor, but it also brings the challenge of ensuring a steady income without exposing your savings to unnecessary risk. Recognizing this need, the Life Insurance Corporation of India (LIC) has introduced a new Fixed Deposit (FD) scheme exclusively for senior citizens, offering guaranteed monthly interest payouts and a secure haven for your retirement funds.

Key Features of LIC FD Scheme for Senior Citizens

1. Exclusivity and Eligibility

• The scheme is available only to Indian citizens aged 60 and above.

• Joint accounts are permitted, provided at least one applicant is a senior citizen.

• PAN card and valid address proof are required; holding an LIC policy is optional in some branches.

2. Guaranteed Monthly Payouts

• Enjoy fixed monthly interest credited directly to your bank account, ensuring a predictable cash flow for daily expenses and medical needs.

3. Attractive Interest Rates

• The scheme offers slightly higher interest rates than standard FDs, ranging from 7.20% to 7.80% per annum, depending on the deposit amount and tenure.

• Senior citizens benefit from rates up to 8% per annum for select tenures.

4. Flexible Tenure Options

• Choose from deposit periods ranging from 1 to 5 years, allowing you to align your investment with your financial goals.

5. High Safety and Stability

• Backed by LIC, a trusted government-owned institution, this FD scheme offers high security and peace of mind for conservative investors.

6. Additional Benefits

• Loan facility: Borrow up to 75% of your FD amount in case of emergencies.

• Nomination facility: Easily nominate a beneficiary to ensure smooth transfer of benefits.

Interest Rates and Earnings: At a Glance.

Interest Rates and Earnings: At a Glance

Deposit Amount	Tenure	Interest Rate (p.a.)	Monthly Interest	Total Return
₹1,00,000	1 year	7.20%	₹600	₹1,07,200
₹3,00,000	2 years	7.40%	₹1,850	₹3,44,800
₹5,00,000	3 years	7.60%	₹3,166	₹6,14,000
₹10,00,000	5 years	7.80%	₹6,500	₹13,90,000
₹6,00,000	5 years	7.80%	₹3,900	₹8,34,000

Post Office Time Deposit: Invest ₹2,00,000 and Earn ₹89,989 in Guaranteed Interest

Secure Your Financial Future with Post Office Time Deposits

Looking for a safe and reliable investment option with guaranteed returns? The Post Office Time Deposit (TD) scheme offers an excellent opportunity to grow your savings with fixed interest rates backed by the Government of India. By depositing ₹2,00,000 in a 5-year TD, you can earn a guaranteed interest of ₹89,989, making it a low-risk choice for investors seeking stability and predictable returns.

Why Choose Post Office Time Deposits?

Unlike bank fixed deposits (FDs), which have seen interest rate reductions following the repo rate cut in April 2024, the Post Office continues to offer competitive rates on its TD schemes. These schemes are managed by the central government, ensuring that your investment is 100% secure. Whether you’re a young professional, a retiree, or a senior citizen, the Post Office TD provides consistent returns without the risks associated with market-linked investments.

The Post Office offers Time Deposits for tenures of 1, 2, 3, and 5 years, with interest rates ranging from 6.9% to 7.5%. Here’s a breakdown of the current rates:

•  1-year TD: 6.9% per annum

•  2-year TD: 7.0% per annum

•  3-year TD: 7.1% per annum

•  5-year TD: 7.5% per annum

The 5-year TD, with its highest interest rate of 7.5%, is particularly attractive for those looking to maximize returns over a longer period.

How ₹2,00,000 Grows to ₹2,89,989

By investing ₹2,00,000 in a 5-year Time Deposit, you can expect a maturity amount of ₹2,89,989. This includes your principal of ₹2,00,000 plus a guaranteed interest of ₹89,989. The interest is calculated quarterly and compounded, ensuring your money grows steadily over the tenure. This fixed return is available to all investors, regardless of age or status, making it an inclusive and straightforward investment option.

Key Benefits of Post Office Time Deposits

1.  Government Guarantee: Your investment is fully secure, as the scheme is backed by the Government of India.

2.  Fixed Returns: Enjoy predictable interest rates unaffected by market fluctuations.

3.  Flexible Tenures: Choose from 1, 2, 3, or 5-year terms based on your financial goals.

4.  Accessibility: Open a TD account at any post office across India with minimal paperwork.

5.  No Discrimination: The same interest rates apply to all investors, including senior citizens.

How to Open a Post Office Time Deposit Account

Opening a TD account is simple:

1.  Visit your nearest post office with identity and address proof (e.g., Aadhaar, PAN, or voter ID).

2.  Fill out the TD account opening form.

3.  Deposit a minimum of ₹1,000 (or ₹2,00,000 for the example above) via cash, cheque, or online transfer.

4.  Choose your preferred tenure (1, 2, 3, or 5 years).

5.  Receive a passbook or certificate confirming your investment.

You can also extend your TD upon maturity or withdraw funds prematurely (subject to certain conditions).

Why Now is the Right Time to Invest

With banks lowering FD rates, the Post Office TD scheme stands out as a high-return, low-risk option. The 7.5% interest rate on the 5-year TD is among the best in the market for government-backed schemes. Additionally, the safety of your principal and the reliability of returns make this an ideal choice for conservative investors or those planning for future expenses like education, retirement, or major purchases.

Start Your Investment Journey Today

The Post Office Time Deposit scheme is a trusted way to grow your savings with peace of mind. By depositing ₹2,00,000 in a 5-year TD, you can secure ₹89,989 in interest, bringing your total to ₹2,89,989 at maturity. Visit your nearest post office or check the India Post website for more details and start investing today.

Disclaimer: The information provided is based on current Post Office TD rates as of May 11, 2025. Rates are subject to change, and investors are advised to verify details with their local post office before investing. For feedback or queries, contact us at [insert contact email].

5 Stocks Where LIC Invested Over ₹100 Crore in Q4 FY24 — Should You Watch Them?

India’s largest institutional investor, the Life Insurance Corporation (LIC), made some interesting moves in the fourth quarter of FY24. The insurance giant added fresh stakes worth over ₹100 crore each in five companies across diverse sectors — a clear signal of confidence in these businesses.

Let’s break down where LIC is putting its money — and why these stocks should be on your radar.

1. Indian Railway Finance Corporation (IRFC)

1. LIC’s stake: 1.05% (137.8 million shares)
2. Why it matters: IRFC plays a critical role in financing Indian Railways’ massive infrastructure expansion. Backed by the government, it’s a consistent performer with a low-risk profile, attractive to long-term investors seeking stability and dividends.
   

2. Jindal Stainless Ltd (JSL)

1. LIC’s stake: 1.24% (10.2 million shares)
2. Why it matters: As India’s largest stainless steel producer, JSL stands to benefit from rising demand in construction, manufacturing, and exports. LIC’s move suggests strong confidence in the metal sector’s growth prospects.
   

3. KPIT Technologies

1. LIC’s stake: 1.32% (3.6 million shares)
2. Why it matters: KPIT is a niche tech company focused on automotive software—especially electric and autonomous vehicles. With EV adoption growing globally, KPIT offers exposure to next-gen auto tech, a sector LIC clearly sees promise in.
   

4. Punjab & Sind Bank

1. LIC’s stake: 1.33% (94.1 million shares)
2. Why it matters: This public sector bank is undergoing transformation with improved fundamentals and digitization. LIC’s investment indicates potential for long-term recovery and value creation in smaller PSU banks.
   

5. BLS International Services

1. LIC’s stake: Not publicly disclosed (over ₹100 crore invested)
2. Why it matters: BLS offers outsourcing services for visa and consular operations globally. With increased travel and globalization, this niche player is quietly gaining market share—evident from LIC’s backing.
   

What Should Retail Investors Do?

While LIC’s moves are worth tracking, don’t blindly follow institutional activity. Instead:

1. Do your own research (DYOR)
2. Consider your financial goals and risk profile
3. Use LIC’s investments as a guide to study promising sectors
   
   

Final Word:

LIC’s Q4 picks reflect a diverse mix of infrastructure, banking, tech, and services. If you’re building a long-term portfolio, these stocks could offer inspiration for further analysis.

Income Tax Calculator 2025-26

 

How to Use the Income Tax Calculator: A Step-by-Step Guide

Income Tax Calculator Comparison

Enter Annual Income (₹):

Understanding how your income tax is calculated can be overwhelming, especially with multiple income sources and different tax slabs. Our Income Tax Calculator simplifies this process by providing an easy-to-use interface to input your income and get an accurate tax breakdown. This guide will walk you through how to use the tool effectively and how tax is calculated based on your income.

How to Use the Income Tax Calculator

Step 1: Enter Your Income Details

• The calculator allows you to input income from different sources, such as:

  • Salary Income (Regular monthly earnings from employment)

  • Business Income (Profit from self-employment or business activities)

  • Capital Gains (Earnings from selling assets like stocks, property, etc.)

  • Other Income (Freelancing, rental income, dividends, etc.)

Step 2: Select Your Tax Regime (if applicable)

• Some countries offer Old vs. New Tax Regimes, where you can choose between different tax structures based on deductions and exemptions.

Step 3: Click on "Calculate Tax"

• Once you enter all income details, press the Calculate Tax button.

• The tool will display:

  • Total Taxable Income after standard deductions.

  • Tax Slab Breakdown, showing how much tax is charged at each slab.

  • Final Tax Liability, which is the amount you owe to the government.

Step 4: View the Tax Breakdown

• The tool provides a detailed breakdown of how much tax each income source contributes.

• This helps in planning finances better and identifying possible tax-saving opportunities.

Step 5: Export or Save Your Calculation

• You can print or download the tax calculation for future reference.

• This is useful when filing tax returns or consulting with financial advisors.

---

How Tax Is Calculated

The tax calculation process follows a progressive tax system, where different portions of income are taxed at different rates. Here’s how it works:

1. Identify Taxable Income

• Gross Income = Salary + Business + Capital Gains + Other Income

• Deductions & Exemptions are subtracted to get the final Taxable Income.

2. Compute Final Tax Liability

• The tax for each income slab is added up.

• If applicable, rebates or tax credits are applied.

• The final tax payable is displayed.

---

Conclusion

Our Income Tax Calculator makes tax calculations effortless by allowing multiple income sources, providing a tax breakdown, and offering easy-to-understand results. Use this tool to plan your taxes better and ensure compliance with tax regulations.

For any queries or suggestions, feel free to leave a comment below!