In today’s unpredictable market, finding a trustworthy and steady way to grow your savings can be difficult. Luckily, a reliable and advantageous option is available – Fixed Deposits (FDs). This article will explore the current fixed deposit interest rates ICICI Bank offers in 2023. These rates have captured the attention of investors due to their appealing returns, and we will explore why they are attracting attention in today’s financial landscape.
Current FD Interest Rates at ICICI Bank
When banks offer deposit accounts, they typically have different interest rates depending on two things:
- How much money you deposit
- How long you keep the money on deposit, known as the tenure
So the rates are often split into tiers based on deposit amounts and maturity periods. Generally, the higher the deposit amount and long maturity period, the higher the interest rate is. These rates are higher for senior citizens.
For example, as of 2023, ICICI Bank has different rates for:
- Deposits of less than Rs 2 crore
- Deposits between Rs 2 crore and Rs 5 crore (less than Rs 5 crore)
- Deposits of Rs 5 crore and more with premature withdrawal facility
- Deposits of Rs 2 crore and above without premature withdrawal facility
Each amount tier has different rates for maturity periods like one year, two years, three years, etc. And in each case, senior citizens qualify for a higher rate.
So, when comparing interest rates on bank deposits, it’s important to look at:
- The amount you plan to deposit
- The length of time or tenure you plan to keep the deposit
In some cases, the rates are structured based on both those factors and customer age. The right combination of deposit size, maturity period and customer profile can help you maximise the interest you earn on your bank deposit.
FD Interest rates on Domestic, NRO & NRE deposits (Less than Rs 5 crore)
For smaller deposits (less than Rs 2 crore):
- The shortest maturity period, 7 to 14 days, has an interest rate of 3.00% for the general population and 3.50% for senior citizens. This is the least return on investment but requires the smallest time commitment.
- If you deposit money for 91 to 120 days, the interest rate jumps to 4.75% for general and 5.25% for senior citizens.
- The highest interest rate 7.10% for general and 7.60% for senior citizens, is for 15 months to less than 18 months and 18 months to 2 years.
For larger deposits (Rs 2 crore to less than Rs 5 crore):
- The interest rates are generally higher here. For example, the shortest maturity period, 7 to 14 days, yields an interest rate of 4.75% for the general population and senior citizens.
- Again, the longer the maturity period, the higher the interest rate, up to 7.25% for 1 year to 389 days or 390 days to less than 15 months.
- However, it’s important to note that after these periods, the interest rates decline slightly to 7.00% for 15 months to less than 18 months, and 18 months to 2 years, and further decrease to 6.75% for 2 years 1 day to 5 years and beyond up to 10 years.
The bank also offers a special category, the 5 Years (80C FD), where a maximum deposit of Rs 1.50 lakh can yield 7.00% for general and 7.50% for senior citizens. However, this is not applicable for deposits of Rs 2 crore and above.
FD Interest Rates on Domestic, NRO and NRE Deposits with Premature Withdrawal Facility (Rs 5 crore and above):
- For smaller deposits (Rs 5 crore to < Rs 5.10 crore): Interest rates range from 4.75% to 7.25% depending on the deposit period.
- For larger deposits (Rs 5.10 crore to < Rs 24.90 crore): Interest rates range from 4.75% to 7.25% for various deposit periods.
- For largest deposits (≥ Rs 500 crores): Interest rates range from 4.75% to 7.30%.
Interest rates for FDs without premature withdrawal facility:
For smaller deposits:
- Shorter tenures have lower interest rates, starting at 4.75% for 7-29 days.
- Rates gradually increase with longer tenures, peaking at 7.35% for tenures less than 15 months.
- Beyond that, the rate stabilises at 7.00% for tenures up to 10 years.
For larger deposits:
- Rates start at 4.75% for 7-29 days and increase to 7.40% for 271 days to less than a year.
- Rates drop slightly to 7.35% for 1 year to under 15 months.
- The rate remains at 7.00% for tenures up to 10 years.
The Role of an FD Calculator
The FD calculator is useful for showing the maturity amount and the interest you earn on your investment. You can input your principal amount, deposit duration, and interest rate into the calculator. That will estimate the returns you can expect from your FD. This tool helps simplify the calculation process and aids you in planning your finances better.
Noteworthy Points about ICICI FD Interest Rates
While considering an FD in ICICI, note that the interest rate will be subject to TDS as per the Income Tax laws. Also, no interest will be payable if the entire FD amount is withdrawn within 7 days from the date of deposit. Therefore, the minimum amount to open a domestic FD is Rs 10,000; for NRO/NRE term deposits, it’s Rs 25,000.
Senior Citizen rates are only available on domestic term deposits. Through an ICICI Bank tax-saver FD, a customer can claim a maximum tax reduction of Rs 1.5 lakh from taxable income.
Additional Benefits for Senior Citizens
ICICI Bank prioritises senior citizens by offering them additional interest rates. Senior citizens get an additional interest rate above the standard rates for domestic term deposits. In addition, under the Golden Years FD scheme, resident senior citizens get an extra interest rate of 0.10% per annum over and above the existing rate of 0.50%. This scheme clearly illustrates how ICICI Bank is considering the financial well-being of its senior customers.
Diverse Tenure Options
With ICICI Bank’s FDs, you can choose your deposit’s tenure. Depending on your needs, you may pick a term as short as 7 days or 10 years. The interest rates vary accordingly. This versatility ensures an FD for every investor, no matter their investment horizon or income bracket.
Conclusion
In today’s uncertain economic times, the promise of assured and guaranteed returns makes FDs an attractive investment option. ICICI Bank, with its competitive FD interest rates, offers investors a viable option to multiply their savings with minimal risk. Use the FD calculator for precise calculations and plan your investments wisely.
