ICICI Bank was established in 1994 by the Industrial Credit and Investment Corporation of India as a fully-owned subsidiary.
ICICI Bank is considered as one of the Big Four Banks of India. It is also India’s second-largest bank in terms of assets under management and market capitalisation since 2018. It has its headquarters in Mumbai and its registered office in Vadodara.
In India, ICICI Bank has more than 4800 branches, and the number is increasing every day. Apart from India, ICICI Bank also operates in 16 different countries including UK, USA, China, UAE, Canada, etc.
It provides a wide assortment of financial services with one of its primary retail service being ICICI Bank fixed deposits. Fixed deposit is the gateway to investments, and the bank has made it considerably easier by simulating the service digitally.
In this article
- Types of ICICI Bank Fixed Deposit Account
- Advantages of Investing in ICICI Bank FD
- Eligibility Criterion for Opening an ICICI Bank Fixed Deposit Account
- ICICI Bank Fixed Deposit Interest Rates
Types of ICICI Bank Fixed Deposit Account
The different types of fixed deposit accounts offered by ICICI Bank are –
- Regular FD account – There are two types of regular fixed deposit accounts provided by ICICI – cumulative and non-cumulative. In cumulative FD accounts, interest is compounded quarterly and is added to the principal amount. In the case of non-cumulative FD accounts, interest is disbursed quarterly. The minimum deposit account for such an account is Rs. 10,000.
- Tax-saving FD account – ICICI Bank also provides the facility to open a tax-saving FD account which allows individuals to avail tax exemption amounting up to Rs. 1.5 lakh under Section 80C. It comes with a strict lock-in period of 5 years, during which account holders cannot make any premature withdrawals. Individuals can either open a cumulative or a non-cumulative account as a tax-saving FD.
- FD with GTP Life Cover – With this account, individuals can enjoy the benefits of a regular FD account while also securing the advantages of a Group Term Plan Life cover by ICICI Bank. The minimum deposit amount for this type of account is Rs. 3 lakh and has a minimum lock-in period of 2 years.
- FD Income Plan – This type of FD account comes with two crucial phases – the investment phase and the payout phase. In the investment phase, interest is compounded quarterly and account holders are not allowed to withdraw any amount from the scheme. After the lapse of the investment phase, monthly pay-outs from the accumulated corpus would be made to the account holder’s savings account or reinvested in an Annuity Fixed Deposit account.
Advantages of Investing in ICICI Bank FD
The reasons why individuals should consider investing in ICICI FD are discussed below –
- Depending on individual investment objectives, consumers can choose from a wide range of tenure options from 7 days to 10 years for their fixed deposit investments.
- Customers can conveniently open their fixed deposit accounts through net banking with ICICI Bank.
- ICICI offers multiple types of fixed deposit accounts to cater to different investment plans and objectives.
- Individuals can choose to activate the automatic renewal option for their fixed deposit accounts for hassle-free reinvestment.
- To ensure liquidity is not compromised, individuals can make partial withdrawals from their ICICI Bank fixed deposit account.
- Feature-rich ICICI Bank credit cards are available against fixed deposit accounts.
- Individuals can open a fixed deposit account with ICICI Bank with a minimum deposit of Rs. 10,000.
Eligibility Criterion for Opening an ICICI Bank Fixed Deposit Account
The primary eligibility criterion that individuals need to fulfil to open an ICICI fixed deposit is –
- Indian citizen
- Hindu undivided families (HUF)
Documents Required to Invest in ICICI Bank FD
The documents necessary to open a fixed deposit account with ICICI are listed below –
- Proof of Identity
- PAN card
- Voter ID card
- Driving license (if any)
- Photo ration card
- Government ID card
- Senior citizen ID card (if applicable)
- Residential Proof
- Electricity bill
- Telephone bill
- Bank statement along with a cheque
- An ID card or certificate issued by Post Office
Individuals should provide the original copies for verification and photocopy of the necessary documents when opening an ICICI fixed deposit account.
It is also imperative to note that the bank might ask for additional documents at its discretion if the concerned authority finds it necessary.
ICICI Bank Fixed Deposit Interest Rates
The interest rates for ICICI FD plans (with premature withdrawal facility) for Indian residents, NRO and NRE accounts are discussed below.
|Tenure||Non-senior citizens, NRO, and NRE FD accounts (%)||Senior Citizens (%)|
|7 days – 14 days||4.0||4.5|
|15 days – 29 days||4.25||4.75|
|30 days – 45 days||4.75||5.25|
|46 days – 184 days||5.25||5.75|
|185 days – 289 days||5.75||6.25|
|290 days – 364 days||6.0||6.5|
|365 days – 389 days||6.2||6.7|
|390 days – 2 years||6.3||6.8|
|2 years 1 day – 10 years||6.4||6.9|
On the other hand, ICICI FD accounts (without premature withdrawal facility) having maturity periods ranging from 3 years to 5 years earn the highest interest rates of 6.4% for both senior and general citizens.
Terms and Conditions for Premature Withdrawals or Closure of ICICI Bank Fixed Deposits
In case an ICICI Bank FD account is closed before its maturity period, interest will only be paid for the period during which such deposit has been parked with the bank. The Bank might also decide to levy a penalty charge, as notified by the bank on the opening date of such deposit.
In case of partial withdrawal before the date of maturity, interest will be paid on such withdrawn amount till the date it has been with the bank and the balance amount will be subject to interest rates ascertained on the opening date of such deposit.
Special Forms to Fill
Form 15G can be submitted if your annual income from interest is less than Rs. 40,000 in one financial year. Senior citizens can enjoy tax waivers if the total interest income is less than Rs. 50,000 by submitting form 15H.
In addition to these forms, accountholders shall also produce their PAN card to concerned banking authorities. ICICI Bank also provides the facility to submit Form 15G/H via Net Banking or ICICI Bank’s dedicated mobile application iMobile app.
Loan against ICICI Bank Fixed Deposit
Individuals can avail a loan of up to 90% against their ICICI fixed deposit balances (principal + interest), which is subject to the concerned authority’s discretion.
- How does a Fixed Deposit account work?
It works as a savings or an investment account, wherein the deposit amount accrues fixed interest over a fixed tenure or maturity period.
- How to open a fixed deposit account?
Individuals can open an ICICI Bank FD account either through ICICI Bank’s online portal or by visiting the nearest ICICI bank branch.
- Does an investor need to be an existing customer with ICICI Bank to open an FD account?
No, both existing and new customers with proper and legitimate documents can open ICICI FD plans.
- What is the minimum deposit amount for opening an ICICI Bank FD account?
The minimum amount for general and senior citizens is Rs. 10,000 and Rs. 2,000 for minors.
- How to calculate fixed deposit interest?
Individuals can use online FD calculators to compute the interest which they will be earning on their investments.
- How does pay-out work in case of fixed deposits?
In the case of cumulative fixed deposits, the entire accumulated corpus (principal + interest) is paid at the end of the maturity period.
In the case of non-cumulative fixed deposits, the interest is disbursed quarterly, and the principal can be withdrawn at the end of such maturity period.
- What is the maximum tenure for ICICI Bank fixed deposits?
The maximum maturity period is 10 years.
- What is the minimum maturity period for ICICI Bank fixed deposits?
The minimum maturity period for a non-cumulative or traditional ICICI Bank fixed deposit is 7 days.
On the other hand, the minimum maturity period for Reinvestment Plan or a cumulative fixed deposit account is 6 months.
- What is a tax-saving fixed deposit?
Individuals can avail tax exemption up to Rs. 1,50,000 under Section 80C by investing in tax-saving fixed deposits.
- Is the interest earned on a tax-saving fixed deposit taxable?
Yes, the interest rate earned on a tax-saving fixed deposit is subject to TDS.