The Life Insurance Corporation of India (LIC) is one of the most reputable financial institutions in India. Millions are secure in their money with LIC to earn a reliable return as LIC provides a safe and sound return. In 2025, LIC introduced a new scheme called the LIC Popular Savings Scheme, which functions as a fixed deposit (FD) but with monthly interest and safety.
Ordinary investors want safety coupled with a fixed monthly income; especially with rising inflation and declining yearly interest rates. This LIC FD scheme is perfect. It can produce ₹6,500 per month with only a ₹1 lakh investment, making it very alluring.
The primary benefit of this scheme is it is Government-backed. Since LIC is a Government agency, the investment is very low risk. This is what is attracting senior citizens and the middle-class families.
How to Apply and Required Documents
Joining this scheme is very easy. Investors can apply through their nearest LIC branch or an authorized agent. Many branches also allow online applications.
When applying, you must provide proof of identity, proof of address, two passport-sized photos, and a PAN card copy. If your investment is more than ₹1 lakh, you also need a bank account number and a cancelled cheque.
Payment can be made by cash, cheque, or online. After the application is accepted, the investor receives a policy receipt or certificate. This document shows the investment amount, term, interest rate, and monthly payment.
Trust and Benefits
LIC is fully owned by the Government of India. This is why investors trust the institution. The government introduces savings schemes to give people safe investment options. This scheme helps investors earn a stable income from a small investment.
The scheme also offers tax benefits. A limited deduction is available on the invested amount under Section 80C of the Income Tax Act. This makes the scheme both a savings plan and a tax-saving option.