LIC 2 Year RD Scheme: Many small investors in India are constantly searching for short-term saving options that promise high and safe returns. The buzz around the LIC 2 Year RD Scheme claiming 12% interest has caught attention quickly. With a simple investment of ₹2,000 per month, people are curious whether they can really earn strong returns in just 24 months. Before you invest, it’s important to clearly understand how LIC plans and recurring deposits actually work.
Is LIC Offering RD Scheme
First, it’s important to clarify that LIC primarily offers insurance and investment-linked policies, not traditional bank-style recurring deposit (RD) schemes. LIC plans may allow periodic investments, but they are structured differently from post office or bank RD accounts. If any scheme claims to offer fixed 12% guaranteed returns in just two years, investors should verify details carefully through official LIC channels.
Understanding 12% Interest Claims
A guaranteed 12% fixed return for 2 years is considered very high compared to most government-backed or fixed income products. Currently, most safe savings instruments in India offer significantly lower interest rates. Therefore, investors should treat such claims with caution and confirm whether the 12% figure refers to projected returns, bonus benefits, or market-linked growth instead of guaranteed interest.
How ₹2,000 Monthly Investment Works
If you invest ₹2,000 every month for 2 years, your total investment becomes ₹48,000. The final maturity amount depends entirely on the scheme’s actual interest rate or return structure. In traditional RD accounts, returns are calculated using compound interest. However, in insurance-based savings plans, returns may depend on bonuses, policy terms, and other factors.
Difference Between RD And LIC Plans
A recurring deposit is a banking product where you deposit a fixed amount monthly and earn guaranteed interest. LIC plans, on the other hand, may include insurance coverage along with savings or investment benefits. This means part of your premium may go toward life cover, and the rest toward savings or investment. So comparing LIC plans directly with RD interest rates can sometimes be misleading.
Is It Good For Short-Term Saving
For short-term goals like building a small emergency fund, bank RDs or post office schemes are usually straightforward and transparent. LIC plans may be better suited for long-term financial planning where insurance protection is also required. A 2-year time frame is generally considered short for most LIC investment products.
Risk And Return Reality
High returns usually come with either longer lock-in periods or market-linked risks. If a scheme promises high guaranteed returns in a short duration, it’s important to double-check authenticity. Safe government-backed schemes typically offer moderate but secure returns rather than extremely high fixed interest.
Final Verdict: LIC 2 Year RD Scheme
The LIC 2 Year RD Scheme with ₹2,000 monthly investment and 12% return claim sounds attractive, but investors should verify all details carefully. LIC mainly provides insurance-based savings plans rather than traditional RDs. Before committing your money, check official documents, understand how returns are calculated, and compare with other safe investment options. Smart investing always begins with verified information and realistic expectations.