What is ICICI Money Multiplier FD?
The ICICI Money Multiplier FD feature gives you the liquidity of a Savings Account, coupled with the high earnings of a Fixed Deposit. This is achieved by linking your Fixed Deposit (FD) Account with your Savings Account. The fund balance in the savings account is never idle. Since your savings account is linked with the fixed deposit, an FD is created as per the instructions. This way you earn a higher interest rate on your fund balance.
How Does an ICICI Money Multiplier FD Work?
- Under the Money Multiplier feature, the number of Fixed Deposits requested by customers is created and connected to the Resident Savings Account. Such linked Fixed Deposits are automatically broken, and the money in them is transferred back to the Resident Savings Account/s (“Reverse Sweep”) to cover any shortfalls in the Resident Savings Account/s as a result of withdrawals via issuance of cheques, ATM withdrawals, and so on, or as a result of insufficient minimum quarterly balance mandated for such Resident Savings Account/s by ICICI Bank Ltd (hereinafter referred to as “the Bank”) from time.
- When your deposits mature, the Bank will automatically renew the principal and accrued interest for the same duration as the initial deposit.
- When the amount in the Savings Account falls below Rs 10,000, all connected Fixed Deposits are enabled for an automated Reverse Sweep in multiples of Rs 5,000 on a Last-In-First-Out (LIFO) basis.
- For the period that the deposit was held with the Bank, less the appropriate premature withdrawal penalty, the amount reverse swept will accrue interest at the applicable rate.
- The remaining cash will continue to earn a greater rate of interest at the original Fixed Deposit rate.
Features of the ICICI Money Multiplier FD
- The Fixed Deposit is created in multiples of Rs 5,000.
- The minimum amount for FD investment is Rs 15000.
- The deposit will be for a duration of one year or more. Moreover, the duration is as per the instructions set up by the account holder.
- You can issue the instructions through any channel to create Fixed Deposit(s) from the surplus funds in your Savings Account. Such channels include the ICICI Bank Branch, ICICI Bank Phone Banking, or ICICI Bank’s Internet Banking.
- The auto-renewal option is enabled when the deposit account is opened. The renewal is for the same amount of time as the original scheme. The auto-renewal interest rate is determined by the current rate on the date of renewal.
- When the amount in a customer’s Savings Account falls below INR 10,000, the account is set up for an automated reverse sweep. The FD is broken on a Last-In, First-Out basis for the reverse sweep.
- You can use an ICICI Bank ATM, ICICI Bank Internet Banking, or a cheque to withdraw funds from your Savings Account.
- More than one Fixed Deposit can be created and linked to the same Resident Savings Account
- The interest rate for the ICICI Money Multiplier FD is the same as the interest rate for other FDs. However, the interest is dependent on the duration of the deposit and the type of customer.
- No overdraft or loan will be provided against the security of fixed deposits made under the Money Multiplier Feature
- You can request a de-linking of your Fixed Deposits made from the savings account. You need to send a request to the bank through either Infinity Phone Banking or the Bank’s branch.
Eligibility for the ICICI Money Multiplier FD
The following is the eligibility criteria for opening and operating the ICICI Money Multiplier FD
- The customer must hold a savings account with the ICICI Bank.
- Eligible customers are Resident Indian Citizens, HUFs, Trusts, Private and Public Limited Company, and Partnership Firm.
- In the case of a regular savings bank account, the customer must maintain a minimum average balance of Rs. 15,000
- The Special Resident Savings Account must hold a minimum average balance of Rs 30,000.
Frequently Asked Questions
You can request a de-linking of your Fixed Deposits made from the savings account. You need to send a request to the bank through either Infinity Phone Banking or the Bank’s branch.
No, you cannot take a loan or an overdraft against the ICICI Money Multiplier FD.
With regular FD you make a one time fixed deposit for a predetermined interest rate and duration. While with Money Multiplier FD, the excess amount in your savings account is converted into an FD. This way the FD earns interest for the tenure it is invested. As soon as the savings account balance drops below the minimum amount or a set level, the FD is withdrawn and the amount is auto-credit to the savings account.
The interest rate for the ICICI Money Multiplier FD is the same as the interest rate for other FDs. However, the interest is dependent on the duration of the deposit and the type of customer.
No, an NRI is not eligible for the ICICI Money Multiplier FD. Furthermore, eligible customers are Resident Indian Citizens, HUFs, Trusts, Private and Public Limited Company, and Partnership Firm.
Yes. You must hold either a regular savings account or a special resident savings account with the minimum balance. The minimum balance for a regular savings account is Rs 15,000. The minimum balance for a special resident savings account is Rs 15,000.