“Invest ₹ 1 lakh in LIC FD and get ₹ 6500 every month!”… Know the whole truth of this viral news, otherwise you will incur loss!

Nowadays, a news is spreading like wildfire on social media and WhatsApp – “By depositing ₹1 lakh in LIC’s new FD scheme, you will get ₹6500 every month!”

Anyone’s eyes will sparkle after hearing this! Who wouldn’t want to have a fixed income of ₹ 6500 every month just by depositing ₹ 1 lakh, sitting at home, without doing anything.

But is it true? Or is it just a false and misleading claim? Come, today let’s ‘investigate’ this entire news and make milk of milk, water of water.

First of all: Does LIC have any FD scheme?

Yes, of course it is! But it is not run by LIC, but by its subsidiary LIC Housing Finance (LIC HFL). This is a very reliable and safe fixed deposit (FD) scheme.

• How much interest is available: 7.25% to 7.75% per annum for common people.
• For the elderly: Senior citizens also get an additional interest of 0.25%.

Now coming to the real question: Is it possible to get ₹6500 per month on ₹1 lakh?

Let us understand some very simple mathematics:

• If you need ₹6500 every month, then how much is it for the year? (₹6500 x 12 = ₹78,000)
• This means that you should get an interest of ₹78,000 in a year on an investment of ₹1 lakh, which is equal to 78% annual interest rate.

Now think for yourself!
Can any bank in the world, any company or even the government itself give 78% interest on FD? no way! This is completely impossible and unbelievable.

So what is the truth? How much will you actually get on an FD of ₹1 lakh?

Now let’s do the actual calculations. Suppose, you get the highest interest rate in LIC HFL i.e. 7.75% per annum.

• You deposited: ₹1,00,000
• Annual interest (at the rate of 7.75%): ₹7,750
• So what is the monthly interest: ₹7,750 ÷ 12 = ₹645.83

That is, on an FD of ₹ 1 lakh, you can get not only ₹ 6500 but a maximum of ₹ 650-₹ 700 every month.

Conclusion: Be cautious, don’t be tempted!

LIC HFL’s FD scheme is a very good and safe scheme, but this ‘₹6500 month’ claim related to it is 100% false and fake.

Before investing money in any scheme, always visit its official website and check the interest rates and terms and conditions thoroughly. Don’t blindly trust any such ‘get rich quick’ news.