What is the ICICI Bank Flexi FD?
For a long time, Fixed Deposits have been one of the most popular and traditional savings instruments in India. One of the main reasons why people select Fixed Deposit plans is that they are the safest investment options that also offer a reasonable return. The banking operations in India have changed dramatically over the years, with many new products and investment plans being implemented. The ICICI Bank Flexi FD, for example, offers the benefits of both fixed deposits and savings accounts.
ICICI Bank Flexi FD Interest Rates 2023
|Type of Depositer||Rate of Interest|
|Individuals (Less than 60 years of age)||2.50% – 5.60%|
|Senior Citizens||3% – 6.35%|
Features of ICICI Bank Flexi FD for Current Account Holders
- Flexi Fixed Deposits combine the liquidity of a current account with the high returns of a fixed deposit. This is accomplished by setting up a Fixed Deposit (FD) linked to your current account, which gives you access to special features.
- A linked FD request requires a minimum amount of Rs 1,05,000 in the current account.
- When the amount in the Current Account decreases below Rs 1,000,000 for individual customers, all FDs linked to the Account will be enabled for the automatic reverse sweep.
- For Current Account customers, the connected FDs will be under the same Customer ID.
- For the reverse sweep, FDs will be broken on a Last-In, First-Out (LIFO) basis.
- The Fixed Deposit will be automatically renewed. The deposit will be renewed for the same amount of time as before.
- The interest rate on such a Fixed Deposit will be the rate in effect at the time of auto-renewal for the appropriate period.
Features of ICICI Bank Flexi FD for Savings Account Holders
- A linked FD request requires a minimum amount of Rs 10,000 in the savings account
- Deposits in multiples of INR 5,000 can be made in the future.
- Additionally, the minimum balance to be maintained in savings is INR 10,000, with a penalty of INR 100 if the necessary value is not maintained.
- A Flexi FD can be opened for a minimum tenure of 15 days and a maximum duration of 91 days.
- The applicable interest rate is the same as a fixed deposit depending on the duration and type of depositor
- Auto-renewals and a nomination feature are also available with the fixed deposit system.
Benefits of Investing in the ICICI Bank Flexi FD
- Interest rates on Flexi Deposits are higher than those on Savings Accounts. As a result, you can be confident that you will get a higher return on your investment.
- You must pay a lump sum payment once to participate in the Flexi Fixed Deposit scheme. You have the option of investing any amount you wish. Different banks have different deposit requirements, so double-check before creating a Fixed Deposit account.
- You can choose the length of your investment to meet your specific needs. This means you can invest for as long or as short a time as you choose to meet your financial objectives.
- The majority of banks in India that offer the Flexi Deposit scheme allow you to withdraw your money early. This makes it a more appealing and practical investment alternative than traditional Fixed Deposits. The traditional fixed deposits do not allow for early withdrawal. Even if you prematurely withdraw your FD you will have to pay a penalty. Flexi Fixed Deposits offer early withdrawal flexibility, allowing you to liquidate your investment in the event of an emergency.
- Opening a Flexi Deposit Account is a simple process. The majority of the banks have a very transparent process. You must fill out a form and provide basic information such as the amount you want to invest, the time for which you want to invest, and your contact information, which includes your address and phone number.
- You can get a loan or a credit against your deposit. It’s a good idea to verify with the bank about their policies for taking out a loan against a Flexi Deposit. The terms and conditions might differ from one bank to another.
- When you have many investment plans, it can be difficult to keep track of the maturity dates. Moreover, you may end up forgetting to renew your investment. Most banks offer auto-renewal to investors with Flexi deposit schemes, so you won’t have to deal with the complications of renewal. You won’t have to remember the dates because the bank will automatically renew the deposit at the end of the term.