Recently, news about an LIC FD scheme promising a monthly income of ₹6,566 on an investment of ₹3 lakh has attracted huge attention. Many young investors are curious because regular monthly income sounds safe and attractive, especially when it comes from a trusted name like LIC. However, it is important to clearly understand what this claim actually means. LIC is mainly known for insurance and pension-based products, not high-return fixed deposits. Before investing money based on headlines or breaking news, every investor should check official details, interest calculations, and product type to avoid misunderstanding and financial disappointment later.
Understanding LIC FD and Monthly Income Reality
LIC does not officially offer a traditional fixed deposit scheme that provides such high monthly income on a ₹3 lakh investment. In the current financial market, FD interest rates generally range between 6% to 7.5% per year. At these rates, a ₹3 lakh FD can generate around ₹1,500 to ₹1,800 per month, not ₹6,566. Many times, such viral claims mix up FD with pension, annuity, or long-term insurance income plans. These plans work differently and often involve longer lock-in periods, age conditions, and return of capital rules. Understanding this difference is extremely important for making a safe investment decision.
Difference Between FD, Pension, and Annuity Plans
A fixed deposit is a simple savings product where you earn interest on your invested amount for a fixed period. The capital remains mostly safe, and returns are predictable. On the other hand, LIC pension or annuity plans provide regular income but are not the same as FD. In annuity plans, the income depends on factors like age, tenure, and whether the principal amount is returned at maturity. The monthly payout may look attractive, but the total return over time can be lower compared to expectations. Therefore, comparing FD returns directly with pension income can be misleading.
Why High Monthly Income Claims Can Be Risky
Claims of very high monthly income from low investment often create unrealistic expectations. If an investment promises returns much higher than market standards, investors should be extra cautious. Such claims may ignore important details like long lock-in periods, tax deductions, inflation impact, or loss of liquidity. Young investors especially should focus on transparency and long-term financial stability instead of quick income promises. Trusting only official LIC brochures, branch information, or verified announcements is always safer than relying on social media posts or breaking news headlines.
Best Options for Safe Monthly Income
If your goal is stable monthly income, there are safer and clearer options available. Bank monthly income FDs, post office schemes, and senior citizen savings schemes offer reliable returns with government or institutional backing. LIC pension plans can also be considered, but only after understanding terms clearly. A balanced approach—mixing safe deposits with long-term investments—helps manage risk better. Before investing, calculate actual monthly income, total return, and tax impact. Smart financial decisions come from clarity, not excitement created by viral news.