A headline circulating online claims that a new LIC Fixed Deposit allows investors to put in ₹2,00,000 and receive ₹13,000 every month with guaranteed safe returns. This is misleading. LIC (Life Insurance Corporation of India) does not run bank-style fixed deposits that could generate such a high monthly income from a small principal. LIC primarily offers life insurance, savings-linked policies, and annuities that can pay a pension-like income. A separate listed company in the LIC group, LIC Housing Finance Ltd, accepts corporate deposits with published interest rates that are in line with the broader market and cannot support a payout of ₹13,000 per month on ₹2,00,000.
What The Viral Claim Gets Wrong
- Mathematics of the payout: A monthly income of ₹13,000 on ₹2,00,000 implies a 78 percent annual cash yield, which is far above any regulated fixed-income product in India. Current deposit and small savings rates are mostly in the 7 to 8 percent range. At 7.4 percent, ₹2,00,000 generates about ₹1,233 per month, not ₹13,000.
- Product category confusion: LIC sells insurance and annuity products. Bank FDs are offered by banks. Corporate deposits can be offered by companies like LIC Housing Finance, but even these publish rates close to bank FDs, not anywhere near the viral figure.
- Verification: Always check such claims directly on the official LIC website. No new FD scheme providing such high returns has been announced.
Quick Summary
Item |
Details |
|---|---|
Viral Claim |
Invest ₹2,00,000 in a new LIC FD and get ₹13,000 every month |
Reality |
LIC does not offer a bank FD that yields this payout. Such returns are not feasible at current interest rates |
What LIC Actually Offers |
Insurance-based plans and annuities that can give monthly pension-like income. Separate entity LIC Housing Finance Ltd offers corporate deposits, not bank FDs |
Typical Returns Today |
Market FD rates are around 7 to 7.6 percent annually. Annuity payouts depend on age and option chosen |
Safer Alternatives |
LIC Immediate Annuity Jeevan Akshay VII, Post Office Monthly Income Scheme, SCSS for seniors, and regulated company deposits like LIC Housing Finance corporate deposits |
Official Sites |
LIC products: licindia.in. LIC Housing Finance deposits: lichousing.com |
Official LIC site: https://licindia.in
Official LIC Housing Finance deposits: https://www.lichousing.com/corporate-deposits/
Realistic Ways To Get Monthly Income With LIC And Other Safe Options
1. LIC Immediate Annuity Jeevan Akshay VII
LIC’s Jeevan Akshay VII is an immediate annuity plan. You pay a lump sum and receive a guaranteed annuity for life at a frequency you choose monthly, quarterly, half-yearly, or yearly. The payout depends on your age, purchase amount, and the option selected (single life, joint life, return of purchase price, etc.).
Who it suits: Retirees or conservative investors seeking predictable lifetime income and willing to exchange liquidity for certainty.
How to estimate payouts: Use an annuity calculator provided by insurers or official LIC tools to preview the monthly amount for your age and corpus.
2. LIC Housing Finance Corporate Deposits
LIC Housing Finance Ltd offers rated corporate deposits with interest rates published publicly. Rates in 2025 are broadly in the 7 to 7.6 percent range depending on tenure and senior citizen status. Interest can be taken periodically, but returns are realistic and aligned with market averages.
Who it suits: Investors comfortable with a company deposit from a well-known NBFC and who understand that company deposits carry different risks than bank deposits.
3. Post Office Monthly Income Scheme (POMIS)
A government-backed small savings scheme that pays interest monthly. The indicative rate in 2025 has been around 7.4 percent per year. On ₹2,00,000, that is roughly ₹1,233 per month before tax.
Who it suits: Conservative savers seeking sovereign-backed monthly interest.
4. Senior Citizens Savings Scheme (SCSS)
For those aged 60 years and above, SCSS offers a regulated, government-backed rate around 8.2 percent, credited quarterly. It is not monthly by default, but many seniors use it alongside POMIS to build predictable cash flow.
How Much Can You Actually Earn on ₹2,00,000
- POMIS at 7.4 percent: about ₹1,233 per month.
- Company or bank deposit at 7.3 to 7.6 percent: interest of about ₹1,216 to ₹1,267 per month, depending on the exact rate and whether you opt for a monthly payout option.
- LIC annuity: depends on age and option. Younger ages generally get lower annuity for the same corpus compared to older ages.
These figures show why the viral ₹13,000 per month on ₹2,00,000 is not realistic.
Eligibility, Documents, and How To Invest
Eligibility
- For LIC annuities, entry age and purchase amount limits apply. For Jeevan Akshay VII, entry age typically ranges from 30 to 85 years depending on the option.
- For LIC Housing Finance deposits, KYC and amount caps per period apply as per published norms.
- For POMIS and SCSS, follow India Post rules on age and maximum investment limits.
Documents
- PAN, Aadhaar, address proof, photographs, and bank details for credit of interest or annuity. Product-specific declarations may be needed.
Steps To Invest Safely
- Verify the product on the official site: LIC products on licindia.in and LIC Housing Finance deposits on lichousing.com.
- Use official calculators: to preview payouts for annuities and to estimate monthly interest for small savings.
- Complete KYC and application: online where available or at an authorized branch or post office.
- Choose payout frequency: monthly, quarterly, or yearly as per the product.
- Retain receipts and mandates: and enable SMS or email alerts.
Risk, Taxation, and Suitability
- Risk: Sovereign-backed schemes like POMIS and SCSS carry minimal credit risk. Company deposits carry issuer risk. Annuities remove reinvestment risk but sacrifice liquidity.
- Taxation: Interest from deposits and POMIS is taxable. Annuity income is taxable as income. TDS rules apply where applicable.
- Suitability: Match the product to your need for guaranteed cash flow, liquidity, and time horizon. Consider splitting your corpus across two or more instruments to diversify income sources.
Frequently Asked Questions
Q1. Does LIC have a new fixed deposit that pays ₹13,000 every month on ₹2,00,000?
No. LIC does not offer a bank-style FD with such payouts. The claim is not supported by official information. Check licindia.in for genuine LIC products.
Q2. What is the closest LIC product that can give monthly income?
LIC’s Jeevan Akshay VII immediate annuity can pay a monthly annuity based on your age and option. The payout will be far lower than ₹13,000 per month for a ₹2,00,000 corpus.
Q3. I saw websites quoting LIC FD rates. Are those genuine?
Those usually refer to LIC Housing Finance corporate deposits, which have card rates around 7 to 7.6 percent depending on tenure and category. They are not LIC Life Insurance bank FDs.
Q4. How much monthly income can ₹2,00,000 realistically generate in safe instruments?
At about 7.4 percent per year, the monthly interest is near ₹1,233 before tax. Annuity payouts depend on age and option but will also be in a realistic range, not ₹13,000.
Q5. Where can I verify any LIC announcement?
Always verify on the official LIC website. Be cautious of social media forwards or unverified financial messages.
Conclusion
A guaranteed monthly payout of ₹13,000 from a ₹2,00,000 principal is not feasible under regulated fixed-income products in India today. LIC does not offer any bank-style FD promising such returns. If your goal is predictable monthly income, consider LIC’s immediate annuity, Post Office Monthly Income Scheme, Senior Citizen Savings Scheme (if eligible), or a rated corporate deposit from LIC Housing Finance. Verify details only on official websites, run your numbers with calculators, and select a mix that balances income, safety, and liquidity for your financial goals.
Official Sites
LIC products: https://licindia.in
LIC Housing Finance deposits: https://www.lichousing.com/corporate-deposits/
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