ICICI Home Finance Bank offers higher fixed deposit interest rates than their savings account. The interest rates range between 4.3% to 6.45% for regular citizens for a tenure of 7 days to 10 years. ICICI Home Finance FDs offer 0.25% additional interest for senior citizens. The bank also allows investors to deposit in multiple investments. This article covers ICICI Home Finance Bank FDs and their interest rates in detail.
ICICI Home Finance FD Rates April 2021
Below is the table showing LIC Housing Finance fixed deposit interest rates.
|Tenure||Regular Rates||Senior Citizen Rates|
|12 months to 24 months||4.30%||4.55%|
|24 months to 36 months||5.55%||5.80%|
|36 months to 48 months||5.95%||6.20%|
|48 months to 60 months||6.20%||6.45%|
|60 months to 72 months||6.25%||6.50%|
|72 months to 120 months||6.45%||6.70%|
Features of ICICI Home Finance Bank Fixed Deposit
ICICI Home Finance Bank fixed deposit FD schemes offer better returns than a savings bank account. Following are the key features of ICICI HFC fixed deposits:
The ICICI Bank fixed deposit tenure ranges between 1 year to 10 years for resident individuals. For non-resident individuals, the minimum tenure is 1 year, and the maximum is 3 years. Once invested, one cannot change the tenure of the ICICI HFC fixed deposit investment. However, one can opt for premature withdrawal. They can also close the existing ICICI Home Finance Bank fixed deposit and start a new FD with the desired tenure.
Minimum and Maximum Deposit Amount
The minimum deposit amount for ICICI Bank FDs is INR 10,000. However, one can opt for an annual income plan, quarterly income plan and monthly income plan. The minimum amount varies with each plan. For an annual income plan, the deposit amount is INR 10,000. For the quarterly and monthly plan, the minimum deposit is INR 20,000 and INR 40,000, respectively. There is no limit on the maximum investment amount for ICICI Home Finance Bank FDs.
ICICI Home Finance Bank FD Interest Rate
ICICI Home Finance Company fixed deposit rates range between 4.3% and 6.45% for regular citizens. The tenure range is 1 year to 10 years.
Preferential Interest Rates
ICICI HFC offers preferential interest rates for senior citizen depositors. The ICICI Bank fixed deposit rates for senior citizens range between 4.55% to 6.70%.
To open a fixed deposit account with ICICI Bank, one has to be eligible. Following are the individuals that are eligible to invest in ICICI HFC FDs.
- Resident Indian citizen
- Non-resident individual and Person of Indian Origin
- Public and private companies, foundations and firms
- Trusts, societies, and association of persons
To open a fixed deposit account with ICICI HFC, one needs the following documents.
- FD application form
- Proof of identity (PAN Card, Passport, Aadhar Card, Driving License, and Voter ID)
- Proof of residence (Passport, Utility Bills, Aadhar Card, and Bank Statement with Cheque)
- Date of birth Proof (Birth certificate, PAN Card, Service Discharge Certificate, Voter ID, and Aadhar Card)
Depending on the plan one chooses, one can invest in ICICI Home Finance Bank FD monthly or quarterly, or annually.
Tax and TDS
Investment in ICICI Home Finance Bank FD does not qualify for tax saving under Section 80C of the Income Tax Act, 1961. Moreover, the interest that one earns on their ICICI Home Finance Bank fixed deposit investments is taxable as per the depositor’s income tax slab rates. Furthermore, ICICI Home Finance Bank deducts a TDS of 10% in case income from interest exceeds INR 40,0000 (INR 50,000 for senior citizens). The TDS rate will be 20% if the PAN Card details aren’t submitted to ICICI HFC.
To determine if the interest income from an ICICI Home Finance Bank term deposit is above or below the TDS threshold limit, one can use the fixed deposit calculator available online. Also, they can determine the tax liability using the Income Tax Calculator. Scripbox’s Income Tax Calculator is free to use and helps in estimating tax liability from ICICI Home Finance Bank FD investment online.
ICICI Home Finance FDs have the highest credit rating by the most reputed credit agencies in India, namely CRISIL, ICRA and CARE.
ICICI Home Finance Bank allows premature withdrawals of FD, however, with certain conditions.
- There is no premature withdrawal in the first 3 months
- For withdrawals between 3-6 months, the maximum interest rate paid will be 4%.
- For withdrawals between 6-12 months, interest paid will be 2% less than the contracted rate of interest.
- On withdrawals after 12 months, the penalty will be 1% on the contracted rate.
Depositors can nominate beneficiaries for their ICICI Home Finance FDs.
ICICI Home Finance offers an auto-renewal facility for deposits.
Opening and managing ICICI Home Finance fixed deposit investments is easy and convenient through their online portal.
Loan against FD
ICICI Home Finance FD investors can take a loan against their deposits to meet their liquidity requirements without breaking it. Investors can get a loan up to 75% against their deposit amount. The interest will be 2% more than the contracted interest rate. The terms and conditions of the loan depend on the bank.
Investors can take loans such as business loans, student loans, loan against property (home loan), etc., against ICICI Home Finance FD. Also, one can use the loan EMI calculator to estimate their loan EMI amount. The loan EMI calculator works as a personal loan EMI calculator, home loan EMI calculator and also car loan EMI calculator. An individual can use the EMI calculator in multiple scenarios to compare the results. By simply changing the input variables like car loan interest rate, home loan interest rate and personal loan interest rate.
A PAN card is mandatory to open an ICICI Home Finance FD account. Also, it is important to note the implications for not disclosing PAN details. The applicable TDS rate for non-submission of PAN card details is 20% instead of the usual 10%, as per the regulations of section 206AA. The ICICI Home Finance will not issue any TDS certificate. Furthermore, the other exemption certificates, like Form 15G and Form 15H, will be invalid.
ICICI Home Finance Fixed Deposit Scheme Detail
Following is the type of fixed deposit scheme offered by ICICI Home Finance:
ICICI HFC fixed deposits offer high returns with flexible tenure. Fixed deposit investments are not market drive and hence offer assured returns at the end of the maturity period.
- Tenure: 12 months to 120 months
- Minimum Investment Amount: INR 10,000
- Interest Payout: Depositors can opt for monthly, quarterly, annual or redeem at the time of maturity. Furthermore, the ICICI HFC offers preferential interest rates to its senior citizen depositors.
- Premature withdrawals: Allowed, and investors can choose a suitable term based on their needs.
- Loan: ICICI HFC FD account holders can get a loan against their investment up to 75% of the corpus.
Frequently Asked Questions
What is the highest FD rate for ICICI Home Finance?
ICICI Home Finance Bank offers higher fixed deposit interest rates than their savings account. The interest rates range between 4.3% to 6.45% for regular citizens for a tenure of 7 days to 10 years. Also, ICICI Home Finance FDs offer 0.25% additional interest for senior citizens. The bank also allows investors to deposit in multiple investments. This article covers ICICI Home Finance Bank FDs and their interest rates in detail.
The highest term deposit rate for ICICI HFC is 6.45% for a regular investor for the tenure of 72 to 120 months. For the same tenure, the senior citizen FD rate is 6.70%. The growth rate of an FD investment depends on the interest rate of the investment. The rule of thumb is to divide 72 with the interest rate to calculate the tenure in which the FD investment will double. For example, if the interest rate on the term deposit is 6.45%, then the investment will double in 11.16 years.
However, one can always calculate the returns from ICICI Bank fixed deposits using the fixed deposit calculator.
Does the ICICI Home Finance offer Recurring Deposits?
No, ICICI Home Finance doesn’t offer a recurring deposit scheme.
Is Icici Home Finance FD safe?
ICICI Home Finance Company FDs guarantee returns in the form of interest. The interest is paid periodically or at maturity as per the choice of the investor. Moreover, these FDs are credited by the most reputed credit agencies like CRISIL, ICRA and CARE. These agencies gave the highest credit rating to ICICI Home Finance Company FDs.
How many years FD will double in Icici?
The growth rate of an FD investment depends on the interest rate of the investment. Also, the rule of thumb is to divide 72 with the interest rate to calculate the tenure in which the FD investment will double. For example, if the interest of the FD is 6.45%, then the investment will double in 11.16 years. Furthermore, investors can compare tenure wise FD rate of ICICI Home Finance to choose the tenure at which it provides the highest interest rate.