ICICI Bank Fixed Deposit
Updated on: Sep 21st, 2023
One of India's largest banks, ICICI Bank, has long been in the forefront of providing trustworthy financial services. The Fixed Deposits (FDs) from ICICI are a beacon of dependability for countless investors within its range of products. These FDs, known for their reliability and attractive returns, are painstakingly designed to accommodate different investment horizons and financial goals.
They are appropriate for the risk-averse retiree and the young professional wishing to park their assets due to their adaptability. This blog will explore the ICICI Fixed Deposits' complexities while highlighting its key characteristics, advantages, and the crucial part they can play in fortifying one's financial portfolio.
Types of ICICI Bank Fixed Deposits
- Regular Fixed Deposits
- Golden Years Fixed Deposit
- Money Multiplier Fixed Deposit (For Saving Account)
- Flexi Fixed Deposit (For Current Account)
- Tax Saver Fixed Deposit
Benefits of Investing in ICICI Bank Fixed Deposits
ICICI Bank customers experience a variety of beneficial features on fixed deposits, such as:
- A customer can avail of ICICI Bank Fixed Deposits for a minimum deposit of ₹10,000
- Customers can get an overdraft against their FD or opt for partial FD withdrawal in emergencies where they need funds.
- ICICI Bank FD investors can get a loan of up to 90% of the principal and accrued interest.
- Senior citizen customers get a 0.50% additional interest rate over and above the regular Fixed Deposit interest rate. This will help our esteemed customers earn higher rates on their hard-earned money.
- Whether a customer holds their fixed deposit account solely or jointly, they can select a single nominee for the proceeds from their account. They only need to fill out a form prescribed under the Banking Companies Act (Nomination Rules).
- Deposits of ICICI Bank Limited, payable in India, are protected by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to a maximum of ₹ 5,00,000 for each depositor.
Features of ICICI Bank Fixed Deposits
Regular Fixed Deposits
- ICICI Bank provides a simple investment option which offers safety, liquidity, flexibility and assured returns.
- Any customer can open a fixed deposit with a minimum amount of ₹10,000 for a flexible tenure ranging from seven (7) days to ten (10) years.
- One can instantly start a fixed deposit through the mobile app and Internet banking.
- ICICI Bank also provides an overdraft (OD) facility against regular fixed deposits up to 90% on the principal plus accrued interest.
- And if a customer needs urgent funds, they have an option of premature/partial withdrawal.
The interest rates for this scheme range from 3.00% to 6.9% for the general public and 3.5% to 7.5% for senior Citizens.
Golden Years Fixed Deposit (Discontinued since 7th April 2023)
- ICICI Bank has launched a golden year fixed deposit exclusively for Indian resident senior citizens, where the bank is providing an additional interest rate of 0.10% on fixed deposits for a limited time over and above the existing additional rate of 0.50%.
- The applicable duration is from 20th May 2020 to 7th April 2023.
- These additional rates will be available on fresh deposits opened and deposits renewed during the scheme period.
- The eligible fixed deposit amount should be less than 2 crores.
- If a deposit opened in the above scheme is prematurely withdrawn/closed after, on or after 5 years 1 day, the applicable penal rate will be 1.10%.
- If the deposit opened in this scheme is prematurely withdrawn/closed before 5 years 1 day, the prevailing premature withdrawal policy will be applicable.
- All other features of term deposit and terms and conditions shall remain unchanged and apply to this scheme.
Money Multiplier Fixed Deposit (For Saving Account)
- The Money Multiplier feature of ICICI Bank gives the bank the liquidity of a savings account coupled with the high earnings of a fixed deposit.
- This is achieved by creating a fixed deposit linked to a savings account which provides unique facilities.
- The minimum balance in the savings/current account should be ₹15,000 to generate a linked fixed deposit request.
- The linked fixed deposit will be under the same customer id and will be for a minimum tenure of 1 year for savings account customers.
- All FDs linked to the account will be enabled for the automatic reverse sweep when the balance in the Savings Accounts falls below ₹10,000 for individual customers.
- The Fixed Deposit will be opened in auto-renewal mode. The deposit will be renewed for the same tenure as the original tenure.
- The interest rate on such Fixed Deposit will be applicable for the respective period, prevailing as on the date of such auto-renewal.
The interest rates for this scheme range from 3.00% to 7.60% for the general public.
Flexi Fixed Deposit (For Current Account)
- The Flexi Fixed Deposit feature of ICICI Bank gives their customer the liquidity of a current account coupled with the high earnings of a fixed deposit.
- This is achieved by creating a fixed deposit (FD) linked to the current account, which provides unique facilities.
- The minimum balance in the current account should be ₹1,05,000 to generate a linked fixed deposit request.
- The linked FDs will be under the same Customer ID for Current Account customers. The Fixed Deposit will be opened in auto-renewal mode.
- The deposit will be renewed for the same tenure as the original tenure. The interest rate on such Fixed Deposit will be applicable for the respective period, prevailing as on the date of such auto-renewal.
The interest rates for this scheme range from 3.00% to 6.9% for the general public and 3.5% to 7.5% for senior Citizens.
Tax Saver Fixed Deposit
- A customer can open a tax saver fixed deposit with a minimum investment of ₹10,000 and a maximum of ₹150,000 for 5 years.
Interests earned on these fixed deposits are taxable and come with a no premature withdrawal and auto-renewal facility.
- FD allows only a one-time lump sum deposit. Customers get the benefit of tax deductions under 80C of the I-T Act.
The interest rate for this scheme is 7.00% p.a. (for general citizens) and 7.50% p.a. (for senior citizens) for a 5 year tenor.
Documents Required for ICICI Bank FD Account
Any one of the following documents would serve as proof of identity and address of the customer:
- Aadhaar number
- Driving License
- Voter ID
- Job card issued by NREGA, signed by a State Government Officer
Letter from the National Population Register
If the above address proof does not contain your communication address, then the following documents can be considered as proof of address. In such cases, the customer has to update the official valid documents (OVD) with a communication address and submit it to the bank within 3 months of account opening.
- Utility Bill, not older than 2 months (electricity, telephone, post-paid mobile phone, piped gas, water bill)
- Property Tax Bill or Municipal Tax receipt, not older than one year
- Letter of Allotment for accommodation from the employer issued by the State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies
- Leave and License agreement with any of the above employers. Agreement to contain the customer’s name as the employee
- Pension or family pension payment orders issued to retired employees by the government departments or public sector undertakings if they contain the address.
How to Open an FD with ICICI Bank?
An ICICI Bank FD account can be opened via different modes such as Mobile App, Internet Banking, and offline.
1) Internet Banking
Follow the steps listed below to open an ICICI Bank FD account via internet banking:
- Log in to ICICI Bank Internet Banking
- Go to ‘Account and Deposits’
- Select ‘Deposits’
- Select ‘FD/RD’
- Select your FD type
- Select your FD tenure. ICICI Bank Fixed Deposit interest rates tenure wise
- Type your amount. You can open an FD for any amount greater than ₹ 10,000
- Click on ‘Submit’. You have successfully opened an FD in ICICI Bank.
2) Mobile App - ICICI Bank App
Follow the below-mentioned steps to open an FD account via ICICI Bank Mobile App:
- Download the ICICI Bank App and sign in.
- Choose the ‘Open Fixed Deposit’ option.
- Fill out all the required personal details and nominee information.
- Submit and the FD account will get opened immediately.
3) Offline ICICI Bank FD Opening
For opening an ICICI Bank FD account offline, one has to visit the nearest ICICI Bank branch. An ICICI Bank FD application form will be required to be filled. Along with this, submit all the essential documents with the deposit amount. On successful processing of the application, an FD receipt will be provided by the ICICI bank.
Premature Withdrawal of your ICICI FD Account
- Use your details to log into ICICI net banking.
- Find and click on 'My Account' and then the 'Deposits' section.
Next, click on 'Service Requests'.
- Find 'Request for' and choose 'Premature withdrawal of FD'. Then, hit 'Continue'.
- Ensure the details (FD account number, savings account details, and amount) are correct. Confirm your name.
- To approve the FD withdrawal, type in your debit card numbers.
- Enter the OTP sent to your phone number, then click 'Continue'.
- If the OTP is verified, you'll get a confirmation of the withdrawal or closure on your email and phone.
- The FD amount will be transferred to the savings account you chose when you requested.
- Note that it can't be cancelled once the closure request is made.
- To close your ICICI Fixed Deposit (FD) in person, you must go to the nearest ICICI branch.
- Ensure to take at least one proof of Identity.
- At the branch, fill out the appropriate paperwork.
- Make sure you fill in all the details correctly.
- Once that's done, your FD will be closed, and the money, including the interest earned, will be put into your savings account.
Closing and Auto-Renewal of an FD account post maturity
Closing an FD account post-maturity depends on whether you’ve accepted a mandate for auto-renewal. Auto-renewal involves reinvesting your funds from your FD account into appropriate tenures.
If you’ve chosen an auto-renewal option when opening your account and change your mind later on, you can request to change your mandate before the maturity of your FD account.
Is the Rs. 5 lakh DICGC insurance cover applicable separately for every bank?
DICGC insures all kinds of bank deposit accounts, such as savings, current, recurring, and fixed deposits up to a limit of INR 5 lakh per account holder per bank. If an individual's deposit exceeds INR 5 lakh in a single bank, only Rs.5 lakh, including the principal and interest, will be paid by DICGC if the bank becomes bankrupt.
Can I get a loan from ICICI Bank on the security of my FD?
Yes, ICICI Bank gives a loan facility up to 90% of principal and accrued fixed deposit interest.
Can I get a credit card from ICICI Bank on the security of my FD?
Yes, a customer can opt for a credit card against their FD invested with the Bank to the extent of 85% of the investment amount.
How is Tax saver FD different from Regular FD?
The main difference between these two is the investment period. It means if you invest in tax saver FD then the minimum period will be 5 years while in regular FDs investment tenure starts from as low as 7 days.
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