Fixed Deposit (FD): Invest Smartly & Safely

An FD is an investment offered by banks and Non-Banking Financial Companies (NBFCs) that provides assured returns based on the interest rate at the time of account opening. Interest rates vary depending on the deposit amount and tenure.

• Traditional Fixed Deposit: Interest is paid regularly (monthly or quarterly) as chosen during the account setup.
• Cumulative Fixed Deposit: Interest is compounded quarterly and paid as a lump sum on maturity.

The ‘reverse sweep’ feature from ICICI Bank automatically transfers funds from a linked Fixed Deposit (FD) to your Savings Account when the balance in your Savings Account is low. This ensures that the transactions in your Savings Account continue, without having to break your FD manually. It’s a convenient way to access funds during emergencies while keeping your FD intact as much as possible.

Yes, auto-renewal can be selected at the time of opening the FD or before maturity. The FD will renew for the same tenure as the original and at the interest rate applicable at the time of renewal.

Yes, existing ICICI Bank customers can open an FD through Net Banking or ICICI Bank's iMobile app. They can also open an FD (of amount below ₹50,000) at any ICICI Bank ATM. New customers need to visit a branch.

Fixed Deposits can be opened for flexible tenures, ranging from 7 days to 10 years.

ICICI Bank's Monthly Payout Fixed Deposit is designed for those who need a regular monthly income from their savings. Under this scheme, the interest earned on your Fixed Deposit is credited to your linked Savings Account every month. This makes it a suitable option for retirees or individuals seeking a predictable income stream. The minimum deposit amount is ₹10,000. 

To maximise returns on your Fixed Deposit, consider the following:

• Choose a tenure that offers a competitive interest rate
• Opt for a cumulative FD where interest is compounded annually for higher maturity value
• If eligible, take advantage of the additional rate available to senior citizens
• Reinvest the proceeds on maturity using the auto-renewal option.
• Use ICICI Bank's FD Calculator to compare returns across tenures before investing.

Note: *FD interest rates are subject to change. Always refer to the ICICI Bank website for the latest rates.

In a cumulative Fixed Deposit, interest is compounded annually. This means interest is calculated at the end of every year on the principal plus accumulated interest. The compounded interest is added back to the principal and the next year’s interest is calculated on this higher amount. Over longer tenures, compounding has a significant positive impact on your maturity amount. ICICI Bank's FD Calculator uses yearly compounding to show you the estimated maturity value.

If you close your Fixed Deposit before the chosen maturity date, ICICI Bank may apply a premature withdrawal penalty. The interest paid on the withdrawn amount may be lower than the contracted rate. The exact penalty depends on the tenure completed and the type of FD.

Note that Tax Saver Fixed Deposits cannot be closed before 5 full financial years.

To avoid a premature FD closure penalty, consider booking multiple smaller FDs instead of a single large deposit (a practice called FD laddering). This way, you can close only the FD you need funds from and leave the rest intact, avoiding unnecessary penalties.

Alternatively, you may opt for an Overdraft Against FD offered by ICICI Bank, which allows you to borrow against your FD without breaking it, helping you meet short-term liquidity needs.

To close an FD before maturity through ICICI Bank Net Banking:

• Log in to your account
• Move to to 'Deposits' > 'Fixed Deposit'
• Select the FD you wish to close and follow the steps for premature closure

To close an FD prematurely through ICICI Bank's iMobile app:

• Log in to the app
• Tap on 'Accounts & FD/RD'
• Select 'Deposits'
• Choose the relevant FD and follow the prompts to close it

Note that a premature withdrawal penalty may apply and certain FD types, such as Tax Saver FDs, are not eligible for premature closure before 5 full financial years.

You can close your ICICI Bank Fixed Deposit account at maturity or before maturity (premature closure) through the following channels:

• Through ICICI Bank Net Banking: Log in > Deposits > Fixed Deposit > Select FD > Choose closure option.
• Through ICICI Bank's iMobile app: Log in > Accounts & FD/RD > Deposits > Select FD > Follow the closure steps.
• You may also visit your nearest ICICI Bank branch for assistance.
  
  

Note that Tax Saver FDs have a mandatory lock-in of 5 full financial years and cannot be closed before completion of this period.

Yes. TDS is applicable on Fixed Deposit interest earned by senior citizens. However, the TDS threshold for senior citizens is higher, TDS is deducted only when the aggregate FD interest exceeds ₹1,00,000 in a financial year (compared to ₹50,000 for general customers).

Senior citizens may submit Form 121 (earlier Form 15H (senior citizen) and 15G (general citizen)) to request that TDS not be deducted, provided their total income is below the taxable limit. The standard TDS rate is 10% where PAN is provided.