New LIC 5 Year FD Plan: The idea of doubling or significantly growing your money in a short time always attracts attention. Recently, discussions about a New LIC 5 Year FD Plan offering 12% guaranteed interest have started circulating.
Claims like investing ₹1,00,000 and getting ₹1.40 lakh after five years sound very appealing. But before making any financial decision, it’s important to understand what is realistic, what LIC officially offers, and how fixed return plans actually work.
Does LIC Offer 12% Guaranteed FD
As of current publicly available information, LIC does not officially offer a 5-year fixed deposit scheme with 12% guaranteed interest. LIC primarily provides insurance-based savings plans, endowment policies, and annuity schemes. Traditional fixed deposits with guaranteed rates are generally offered by banks and NBFCs, and even those typically range between 6% to 8% annually, depending on tenure.
Investors should always verify such claims through LIC’s official website or branch offices.
Understanding The ₹1,00,000 To ₹1.40 Lakh Claim
Let’s look at the math. If someone invests ₹1,00,000 at a true 12% annual compounded interest for five years, the maturity value would be approximately: ₹1,00,000 × (1.12)^5 ≈ ₹1,76,000
This means a real 12% compounded return would give around ₹1.76 lakh, not ₹1.40 lakh.
If the maturity value is ₹1.40 lakh in five years, the effective annual return would be much lower, closer to around 7%–8%.
This highlights why understanding compounding is important before believing promotional claims.
What LIC Actually Offers
LIC provides several long-term savings and insurance-linked investment plans. These plans may include:
• Endowment policies
• Money-back policies
• Pension and annuity schemes
• Guaranteed return plans with fixed benefits
However, most guaranteed return plans from LIC are structured differently and may include life cover benefits along with maturity payouts. They are not the same as simple bank fixed deposits.
Why 12 Percent Guaranteed Sounds Risky
In today’s regulated financial market, 12% guaranteed annual return for 5 years from a safe institution is extremely rare. Higher returns generally involve higher risk. Government-backed or insurance-backed guaranteed schemes usually provide moderate but stable returns.
Investors should be cautious of any offer claiming high guaranteed returns without official documentation.
How To Verify Before Investing
Before investing in any scheme claiming 12% guaranteed interest:
• Visit the official LIC website
• Check policy brochures carefully
• Confirm details with authorized LIC agents
• Avoid schemes promoted only through social media messages
• Ask for written documentation and IRDAI approval details
Verification protects you from financial scams and misleading offers.
Better Investment Planning Approach
If your goal is to grow ₹1,00,000 in five years, consider diversified strategies such as:
• Bank fixed deposits for safety
• Debt mutual funds for moderate growth
• Equity mutual fund SIPs for potentially higher returns
• LIC long-term savings plans for stability plus insurance
Combining safe and growth-oriented options can create balanced financial planning.
Final Verdict: New LIC 5 Year FD Plan
The claim of New LIC 5 Year FD Plan offering ₹1,00,000 investment to become ₹1.40 lakh at 12% guaranteed interest does not match standard financial calculations or currently known official LIC offerings.
While LIC remains a trusted institution for insurance and long-term savings, investors should verify any high-return guarantee directly through official channels. Smart investing always begins with careful research and realistic return expectations.