ICICI Bank Fixed Deposit

ICICI Bank offers multiple fixed deposits for various tenures with different interest rates to its investors. The interest rate on ICICI FDs is higher in their savings account. One can invest in ICICI FDs through both online and offline modes with a minimum investment of INR 10,000. This article covers ICICI Bank FD, its features and interest rates in detail.

ICICI Bank Fixed deposit schemes

Following are the types of ICICI Bank fixed deposit schemes:

• Regular Fixed Deposit
• Tax Saver Fixed Deposit: Traditional & Reinvestment
• Money Multiplier Fixed Deposit
• ICICI Bank Golden Years Fixed Deposit
• Flexi Fixed Deposit
• Short Term
• Medium and Long Term

ICICI Bank Regular Fixed Deposit

Regular FD provides depositors safety and flexibility. These fixed deposit schemes also earn returns based on the prevailing interest rates as declared by RBI.

• The interest payment is done only at the time of maturity.
• Depositors can avail loan facility up to 90%. Also, the scheme offers a nomination facility.
• The minimum amount is INR 10,000, and the tenure ranges between 7 days to 10 years.
• Additionally, these fixed deposit schemes provide an option for premature or partial withdrawal in case of emergencies.
• Resident Indian Citizens, HUFs, Trusts, Private and Public Limited Company, and Partnership Firms are eligible to open a regular fixed deposit account.
• The ICICI FD Interest Rate varies depending on the tenure of the deposit.

ICICI Bank Tax Saver Fixed Deposit

The tax saver FD offers assured returns and as well as tax saving benefit to its depositors.

• The scheme is eligible for tax deduction up to INR 1,50,000 under Section 80C of the Income Tax Act.
• The minimum investment in the scheme is INR 10,000.
• The scheme has a fixed tenure of five years.
• Also, the tax saver FD doesn’t offer premature withdrawals or auto-renewal facility.
• The interest earned is taxable.
• Resident Indians, senior citizens and non-resident Indians are eligible for opening tax saver fixed deposits.

ICICI Bank Money Multiplier Fixed Deposit FD

The Money Multiplier FD offers the benefits of both a savings account and a fixed deposit. The scheme provides liquidity benefits of a savings account and high-interest rates of an FD.

• The minimum balance is INR 15,000.
• The minimum tenure for the scheme is one year for Savings Account customers.
• For individual customers, when the balance in the Savings Account falls below INR 10,000, the account is enabled for the automatic reverse sweep. For the reverse sweep, the FD is broken on Last-In, First Out basis.
• The deposit account is opened with an auto-renewal option. The renewal is done for the same tenure as the original scheme tenure. The interest rate for auto-renewal is based on the prevailing rate as on the date of renewal.
• Resident Indian Citizens, HUFs, Trusts, Private and Public Limited Company, and Partnership Firms are eligible to open money multiplier fixed deposit accounts.

ICICI Bank Golden Years Fixed Deposit

The ICICI Bank Golden Years FD offers an additional interest rate of 0.30% per annum for fixed deposits above five years’ tenure.

• The additional rate is applicable on deposits renewed during the period and on fresh deposits as well. The FD tenure is between 5 years one day to 10 years.
• The applicable duration for the FD is May 20, 2020, to September 30, 2020.
• The scheme is applicable on a single FD with an amount lower than INR 2 crore.
• The premature withdrawal facility is available with a penalty.

ICICI Bank Flexi Fixed Deposits

The Flexi fixed deposit scheme allows saving and current account holders to open a fixed deposit account. The minimum balance in the Flexi deposit account is:

• For current account holder – INR 20,000 (initial deposit)
• For savings bank account holder – INR 10,000 (initial deposit)
• Also, future deposits can be made in multiples of INR 5,000.
• Additionally, the minimum balance to be maintained in savings and the current account is INR 10,000 and INR 25,000, respectively.
• Moreover, the scheme charges a penalty of INR 100 if the minimum balance isn’t maintained in the account.
• The Flexi FD can be opened for a minimum of 15 days and a maximum of 91 days.
• The interest rate applicable is the same as that of a term deposit.
• Also, the fixed deposit scheme offers auto-renewals and a nomination facility.

ICICI Bank Short Term Fixed Deposit

Short term fixed deposits allow investors to invest money for as short as seven days and up to 289 days. However, the interest rate varies with duration.

The interest rate for short term deposit ranges between 2.5% p.a to 4.75% p.a. Also, the interest rate varies for senior citizens and is between 3.00% p.a to 5.25% p.a.

ICICI Bank Medium and Long Term Fixed Deposit

ICICI Bank offers multiple FDs for tenures ranging between one to ten years. Also, the interest varies with tenure.

• For one-year FD, the interest rate is 5.15% p.a, and for senior citizens, it is 5.65% p.a.
• For 18 months to three years is 5.35% p.a. and for senior citizens id 5.85%
• Also, for three years to five years, the rate is 5.50% p.a. and for senior citizens is 6%
• Five years to 10 years, the rate is 5.50% and for senior citizens is 6.30%

Key Features of ICICI Bank Fixed Deposit Schemes

• Tenure: The tenure of an ICICI FD ranges from seven days to ten years. One cannot change the tenure of their ICICI FD once it has commenced.
• Minimum and maximum investment: The minimum investment in ICICI FD is INR 10,000. However, there is no limit on the maximum amount of investment in ICICI FD.
• ICICI Bank FD rates: ICICI Bank FD rates range between 2.5% and 5.5% for regular citizens and between 3% and 6.3% for senior citizens. Moreover, ICICI Bank offers an additional 0.5% interest to senior citizens on their FDs. ICICI gives the choice of interest payout frequency to the investors, and they can choose from the following – monthly, quarterly, half-yearly, yearly, or at maturity.
• Premature withdrawal: All ICICI bank FDs can be withdrawn prematurely except for tax saving FDs. ICICI Bank charges a 0.5%-1% penalty on the interest for premature withdrawals. However, the penalty is subject to change as per ICICI Bank terms and conditions.
• Loan against FD: ICICI offers loans against their FDs. Investors can get up to 90% of the deposit amount as a loan against their ICICI FD investment. Also, the interest rate for the loan will be 1%-2% above the contracted interest rate.
• Nomination facility: ICICI FD investors can nominate beneficiaries for their FDs.
• Auto-renewal: Investors can opt for auto-renewal of their ICICI FDs.
• Safety: The Deposit Insurance Scheme of RBI covers all ICICI bank deposits. The scheme covers all ICICI bank deposits up to INR 5,00,000.
• Additional payments: Investors cannot deposit an additional amount in an ICICI Bank FD once it has commenced. However, they can open a fresh ICICI FD with the new amount.

How to open an ICICI Bank FD deposit account?

One can open an ICICI Bank FD account through various modes such as Internet Banking, Mobile App and offline.

Internet Banking

The following steps will help an individual to open an ICICI Bank FD account through internet banking:

• Log in to the Internet Banking account with the User id and password.
• Next, select the ‘Open Fixed Deposit’ option.
• Provide all the required personal information and nominee details.
• Submit, and the FD account opens instantly.

Through Mobile App

ICICI Bank App

The following steps will guide in opening an FD account through ICICI Bank Mobile App:

• Download the ICICI Bank App and log in.
• Select the ‘Open Fixed Deposit’ option.
• Provide all the required personal information and nominee details.
• Submit, and the FD account opens instantly.

Offline ICICI Bank FD Opening

To open an ICICI Bank FD account offline, one has to visit the nearest ICICI Bank branch. Fill the ICICI Bank FD application form and submit all the necessary documents along with the deposit amount. Upon successfully processing the application, ICICI bank will provide an FD receipt.

Documents Required to Open ICICI Bank FD

Following are the documents required to open an FD in ICICI Bank are:

• 2 Photographs
• Identity Proof as per KYC norms. (PAN Card, Voter ID Card, Passport, Driving License)
• Address proof as per KYC norms. (PAN Card, Voter ID Card, Passport, Driving License)
• Pan Card or a declaration in Form No. 60 or 61 of the Income Tax Act
• Senior Citizen ID Card (for senior citizens)
• Any other documents as applicable for partnership, proprietorship, company, HUF, association or institution.

Eligibility  to Open ICICI Bank FD

Only eligible investors can invest in ICICI Bank FD. The eligibility criteria to invest in ICICI Bank FD is:

• Resident Individual
• Partnership Firms
• Private and Public Companies
• NRIs and PIOs (Non-Resident Indians and Persons of Indian Origin)

Does ICICI Bank offer Recurring Deposits?

ICICI Bank offers recurring deposits to its depositors. ICICI recurring deposits have a minimum tenure of six months and a maximum tenure of 10 years. Depositors can open an RD account either by going to the ICICI bank branch or online using internet banking. The interest rate for regular citizens on ICICI RDs is in the range of 3.5% to 5.35%, and for senior citizens, it is in the range of 4% to 5.85%.

Is FD interest taxable?

Only investment in ICICI bank Tax Saving FD qualifies for tax saving up to INR 1,50,000 per annum. Investment in no other ICICI bank FDs qualifies for tax saving under Section 80C of the Income Tax Act. The interest income from ICICI FD is taxable as per the investor’s income tax slab rates. Moreover, the interest income is subject to TDS of 10% if the income from ICICI Bank FD exceeds INR 40,000 per annum. For senior citizens, the limit is INR 50,000 per annum. Also, if the investor doesn’t disclose PAN Card details to ICICI Bank, then the TDS rate will be 20%.

In how many years will FD double?

To know in how many years ICICI FD will double, we can follow the 72 rule. We have to divide 72 by the interest rate, and the result will be the number of years ICICI Bank FD will double. For example, for a tenure of 5 to 10 years, the FD interest rate for senior citizens is 6.3%. An investor can double the investment amount by investing for this tenure in ICICI FD in 11.42 years (72/6.3).

Frequently Asked Questions