ICICI Bank Fixed Deposit Rates-2024
Introduction:
ICICI Bank Limited stands as a prominent financial institution in India, with its registered office situated in Vadodara, Gujarat, and its corporate headquarters located in Mumbai, Maharashtra.
Offering an extensive array of banking products and services catering to both retail and corporate clientele, the bank originally operated under the name Industrial Credit and Investment Corporation of India before adopting its acronym 'ICICI'.
Providing numerous fixed deposit options, ICICI Bank enables customers to securely invest their funds for a predetermined period.
Renowned for competitive interest rates, ICICI FD schemes rank among the market's best offerings. Depositors are required to make a one-time deposit at the account's opening, with no provision for subsequent deposits once the account is established. In comparison to savings deposits, ICICI Bank extends higher interest rates through its fixed deposit schemes.
Key Features and Advantages of ICICI Bank Fixed Deposits
Senior citizens are eligible for an additional interest rate of 0.50% per annum on top of the regular rates.
The minimum deposit required to open an FD account with ICICI Bank is Rs. 10,000. However, minors can open an account with Rs. 2000.
The bank offers a nomination facility.
A loan facility of up to 90% of the deposit amount is available.
Interest on deposits will be paid only upon maturity.
ICICI Bank provides six types of FD schemes: Fixed Deposit (regular plan), Fixed Deposit (without premature withdrawal facility), Tax-Saver FD, Fixed Deposit with Monthly Income option, Money Multiplier Plan, and FD Xtra, which includes an additional suite of products.
ICICI Bank FD Interest Rates 2024
Tenure
Interest
Rates (PA)
Interest Rate
for Seniors (PA)
1 month - 1 month 15 days
3.5%
4%
1 month 16 days - 1 month 30 days
4.25%
4%
2 months - 2 months 29 days
4.5%
5%
3 months - 6 months 1 day
4.75%
5.25%
5.75%
6.25%
8 months 27 days - 11 months 30 days
6%
6.5%
1 year 3 months - 2 years
6.7%
7.2%
1 year 3 months - 2 years
7.2%
7.75%
2 years 1 day - 4 years 11 months 30 days
7%
7.5%
Types of ICICI Bank of India FD Schemes
ICICI Bank Regular Fixed Deposit
This FD can be instantly opened via the iMobile app or internet banking.
Tenure: 7 days to 10 years.
Deposit Amount: Minimum Rs. 10,000.
Overdraft (OD) facility: Available for up to 90% on principal plus accrued interest.
Premature/partial withdrawal facility: Available.
ICICI Bank Golden Years FD (for senior resident citizens)
This FD scheme is exclusively for resident senior citizens.
Applicable on single deposits of less than Rs. 2 crore.
Additional interest rate: 0.10% p.a. over the existing additional rate of 0.50% p.a. for eligible depositors.
Additional interest rate applicable on FD tenure of 5 years and 1 day to 10 years.
Premature withdrawal: Penal rate of 1% charged if prematurely withdrawn/closed after 5 years 1 day. Otherwise, prevailing premature withdrawal policy applies.
ICICI Bank Money Multiplier FD
This scheme offers the liquidity of a Savings Account with the high earnings of a Fixed Deposit.
FD linked to an existing Savings Bank Account facilitates automatic reverse sweep when the balance falls below Rs. 10,000 for individual customers.
Linked FDs under the same Customer ID, minimum tenure of one year for Savings Account customers.
FDs broken on Last-In First-Out (LIFO) basis for reverse sweep.
FD opened in auto-renewal mode, renewed for the same tenure as the original.
Interest rate same as prevailing rate on the date of auto renewal.
ICICI Bank Flexi FD for Current Account Customers
Bank links FD to current account, offering liquidity of a Current Account and high earnings of a Fixed Deposit.
Minimum balance in Current Account: Rs. 1.05 lakh for linked FD request generation.
Automatic reverse sweep enabled when Current Account balance falls below Rs. 1 lakh for individual customers.
Linked FDs under the same Customer ID for Current Account customers.
FDs broken on Last-In First-Out (LIFO) basis for reverse sweep.
FD opened in auto-renewal mode, renewed for the same tenure as the original.
Interest rate on FD same as prevailing rate on date of auto-renewal.
ICICI Bank Tax Saver FD
Tax deduction of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act.
Minimum Deposit: Rs. 10,000.
Tenure: Fixed for 5 years.
Interest payout options: Monthly, Quarterly, or Reinvestment in principal.
No premature withdrawal and auto-renewal facility.
Interest earned taxable.
ICICI Bank FD Xtra
Suite of products offering extra benefits.
Variants: FD Life, FD Invest, FD Income, and FD Card.
FD Life: Offers returns and security of Fixed Deposit with Life Cover protection.
FD Invest: Safety of an FD and growth opportunity of a Mutual Fund Systematic Investment Plan (SIP). Monthly interest on principal invested and same interest invested in Mutual Fund SIP.
FD Income: Offers depositors regular income for chosen tenure.
FD Card: Instant FD-backed Credit Card with 90% of FD amount as credit limit on Credit Card.
ICICI Bank Overdraft Against Fixed Deposit
Purpose: Immediate personal or business-related financial needs without breaking FD.
Borrow up to 90% of FD (principal and accrued interest).
ICICI Bank Fixed Deposit Schemes for NRIs
NRE FD Account
High-return Rupee deposit option for foreign income.
Principal amount and interest earned fully repatriable.
Loan against FD: Loans up to 90% of deposit available.
Minimum deposit amount: Rs. 25,000.
Tenure: 1 year to 10 years.
Automatic renewal of principal and interest on maturity.
NRO FD Account
Earn high returns on funds generated in India.
Joint holdings with Indian residents and non-residents.
Minimum deposit amount: Rs. 25,000.
Tenure: 7 days to 10 years.
Interest earned in a financial year fully repatriable (after deducting tax).
Loan against FD: Loans up to 90% of deposit (up to Rs. 5 crores) available.
Automatic renewal of deposits on maturity.
Interest earned on NRO deposits subject to applicable tax deduction at source.
NRO Tax Saver
Tax deduction up to Rs. 1.5 lakh under Section 80C in year of investment.
Minimum deposit amount: Rs. 25,000.
Maximum deposit amount: Rs. 1.5 lakh.
Tenure: 5-year lock-in period.
Interest Payout Options: Monthly, Quarterly, or Reinvestment in principal.
Joint holder option available.
Rupee Plus Plan
Flexibility in currency: Account funded with 6 convertible foreign currencies.
Minimum deposit: USD 2,500/ EUR 2,500/ GBP 1,000/ JPY 2,00,000/ AUD 2,000/ CAD 2,000/ Rs. 1,00,000.
Tenure: 1 year and 1 day.
Premature closure not allowed.
Currency market movements do not affect returns once deal is booked.
Tax-free interest in India.
Fully repatriable funds.
How to Open a Fixed Deposit Account with ICICI Bank
Opening an FD account with ICICI Bank can be done through various channels, including Mobile App, Internet Banking, and offline methods.
Internet Banking:
To open an ICICI Bank FD account through internet banking, follow these steps:
Log in to your Internet Banking account using your User ID and password.
Select the ‘Open Fixed Deposit’ option.
Fill in all the necessary personal and nominee details.
Submit the information, and your FD account will be opened instantly.
Mobile App - ICICI Bank App:
To open an FD account via the ICICI Bank Mobile App, follow these steps:
Download the ICICI Bank App and log in.
Choose the ‘Open Fixed Deposit’ option.
Fill in all the required personal and nominee details.
Submit the information, and your FD account will be opened immediately.
Offline ICICI Bank FD Opening:
For offline opening of an ICICI Bank FD account, visit your nearest ICICI Bank branch. You'll need to fill out an ICICI Bank FD application form and submit it along with all the necessary documents and deposit amount. Upon successful processing of the application, you'll receive an FD receipt from ICICI Bank.
Qualifications for Opening a Fixed Deposit Account at ICICI Bank
The main requirement individuals must meet to open an ICICI fixed deposit is:
Indian citizenship
Hindu undivided families (HUF)
Trusts
Associations
Societies
Clubs
Necessary Documents to Open a Fixed Deposit Account at ICICI Bank
To initiate a fixed deposit account with ICICI, the following documents are required:
Proof of Identity:
PAN card
Voter ID card
Passport
Driver's license (if available)
Photo ration card
Government ID card
Senior citizen ID card (if applicable)
Residential Proof:
Electricity bill
Telephone bill
Bank statement with a cheque
ID card or certificate issued by the Post Office
During the process of opening an ICICI fixed deposit account, individuals must present original copies of the documents for verification and provide photocopies as required.
It's important to acknowledge that the bank reserves the right to request additional documents at its discretion if deemed necessary by the relevant authorities.
Early Withdrawal of ICICI Bank Fixed Deposit
All fixed deposits with ICICI Bank are eligible for premature withdrawal, except for tax-saving fixed deposits. The bank imposes a penalty of approximately 0.5% to 1% on the interest for such premature withdrawals.
The penalty is subject to modification in accordance with ICICI Bank's terms and conditions.
Role of Fixed Deposits in an Investment Portfolio
Investing in market-linked instruments carries risks, particularly when aiming for higher returns.
To achieve a balanced financial portfolio, it's crucial for investors to include safer investment options as well.
Fixed deposits offer a secure investment avenue with guaranteed returns, contrasting with higher-risk options.
Thus, even if investors incur losses from other ventures, they can offset some of those losses through the stable earnings from fixed deposits.
This strategy can help maintain financial stability in their overall investment portfolio.
Benefits of Investing in a Fixed Deposit Account
IFixed deposit accounts offer several advantages that make them appealing to investors:
Stable Returns: These accounts provide a constant interest rate, ensuring predictable and steady returns.
Low Risk: As FDs are not impacted by market volatility, they are considered low-risk, making them suitable for conservative investors.
Capital Preservation: The principal amount is secure, and investors are assured of receiving their initial investment plus the accrued interest at the end of the maturity period.
Flexible Tenure Options: Investors can select from various tenure lengths offered by banks, ranging from a few months to several years, to align with their financial objectives.
Ease of Investment: Setting up a fixed deposit account is easy, requiring only minimal paperwork and a straightforward application process.
Regular Income Stream: Particularly beneficial for retirees, FDs can provide a consistent income stream through periodic interest payouts (monthly, quarterly, or annually).
Loan Facilities: Fixed deposits can also serve as collateral for loans, offering financial flexibility while keeping the deposit intact.
Tax Benefits: Certain types of fixed deposits qualify for tax deductions under specific sections of the Income Tax Act, promoting long-term savings.
No Market Dependency: The performance of FDs is independent of market conditions, offering stability regardless of economic fluctuations.
Ideal for Short to Medium-Term Goals: FDs are well-suited for meeting short to medium-term financial objectives, such as purchasing a vehicle, funding education, or planning a holiday.
Drawbacks of Fixed Deposit Accounts
Fixed deposit accounts come with certain limitations, which are outlined below:
Taxation on Interest: The interest income from fixed deposits is taxable under "Income From Other Sources" when you file your Income Tax Returns (ITR). For those seeking tax-free earnings, options like Tax-Saver FDs, ULIPs, PPF, and government bonds may be more suitable.
TDS Applicability: TDS (Tax Deducted at Source) is deducted from the interest earned on fixed deposits, which can reduce the overall returns from your investment.
Comparatively Lower Interest Rates: Generally, fixed deposits offer lower interest rates, typically between 5% to 9% per annum, which may be less than other investment avenues, potentially limiting your investment growth.
Interest Rates and Inflation: Sometimes, the interest rates on fixed deposits may not keep up with inflation, leading to a decrease in the real value of your returns over time.
Fixed Interest Rates: Unlike other investments where rates might fluctuate, fixed deposits maintain a constant rate throughout their tenure. This means returns do not increase even if market or economic conditions improve.
Limited Access to Funds: Your funds are locked in for the duration of the deposit, restricting access to your money. Early withdrawal is possible but usually incurs penalties, affecting your total returns.
Understanding Loan Against Fixed Deposit
Investors with fixed deposits can secure a loan against their FD holdings. The maximum loan amount available can differ from one bank to another and is typically a specified percentage of the fixed deposit value.
The interest rates for loans against fixed deposits are generally lower than those for unsecured loans. Investors looking to take advantage of this should carefully compare interest rates.
The repayment period for such a loan is usually capped at the maturity term of the associated fixed deposit.
Tax Implications on Fixed Deposit Earnings
Interest earned from fixed deposits is subject to Tax Deducted at Source (TDS) according to the rules set forth in the Income Tax Act. This interest income is then reported on Income Tax Returns under "Income from Other Sources."
The Income Tax Department applies the TDS against the individual's total tax liability. However, TDS on interest income is only deducted when the total interest earnings across all sources exceed Rs. 40,000 annually.
If earnings are below this threshold, individuals should submit Form 15G/H to the financial institution to avoid TDS. Form 15G/H can also be submitted for interest earnings above Rs. 40,000, but in such cases, individuals must ensure they meet any remaining tax obligations themselves.
Additionally, if an individual invests in a tax-saving FD, they are eligible to claim a tax exemption on the principal amount up to Rs. 1.5 lakh per financial year.
What is a fixed deposit?
A fixed deposit is a type of savings account where money is deposited for a fixed period and earns interest at a predetermined rate.
How safe are fixed deposits?
Fixed deposits are considered very safe as they are not affected by market fluctuations and often guaranteed by the bank or financial institution.
Can I withdraw money from my fixed deposit before maturity?
Yes, but early withdrawal may incur penalties and result in lower interest earnings.
Do fixed deposits offer tax benefits?
Tax-saver fixed deposits qualify for tax deductions under Section 80C of the Income Tax Act but come with a lock-in period.
What documents are required to open a fixed deposit account?
Typically, you need identity proof, address proof, and sometimes a PAN card, along with the completed application form.
Author
Harish Malhi
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