ICICI Bank FD interest rates hiked: Check latest rates
What's the story
ICICI Bank, India's second-largest private bank, has reportedly raised the interest rates on its fixed deposits (FD) once again with effect from Tuesday (June 7). The increase in ICICI Bank FD interest rates comes as the Reserve Bank of India holds its bi-monthly Monetary Policy Committee meeting, where it is expected to raise repo rates in order to combat rising inflation.
Context
Why does this story matter?
When it comes to investment options in India, fixed deposits are among the top choices as they guarantee fixed returns to investors. Fixed deposits are also considered a safe investment option as they offer good returns and tax benefits and involve no risks. FDs are also easy to open and some banks offer the facility online as well.
Definition
What exactly is a fixed deposit?
A fixed deposit is nothing but a financial product offered by banks to customers that provides a higher interest rate than regular savings bank accounts. For investing in FDs, the customer deposits a fixed amount of money with the bank for a fixed period. The bank provides a fixed rate of interest until the FD reaches maturity.
News
Interest hiked on deposits between Rs. 2-5 crore
The most recent hike on ICICI Bank FD rates applies to deposits exceeding Rs. 2 crore and up to Rs. 5 crore, News18 reported. On its website, the bank announced that the FD rates for domestic, Non-Resident Ordinary (NRO), and Non-Residential External (NRE) deposits have been increased. The bank also clarified the hiked interest rates for senior citizens are only applicable to domestic FDs.
#1
New rates of interest applicable from today
Starting from June 7, 2022, the following are the updated interest rates on fixed deposit schemes of more than Rs. 2 crore and up to Rs. 5 crore at ICICI Bank: Seven days to 14 days: 3% for the general public and senior citizens as well. Fifteen days to 29 days: 3% for the general public and senior citizens.
#2
New FD interest rates for schemes ranging 1-4 months
New ICICI Bank FD rates: Thirty days to 45 days: 3.25% for the general public and senior citizens. Forty-six days to 60 days: 3.25% for the general public as well as senior citizens. Sixty days to 90 days: 3.40% for both the general public and senior citizens. Ninety-one days to 120 days: 4.25% for the general public and senior citizens.
#3
Rates of interest for 4-9 months
One hundred twenty-one days to 150 days: 4.25% for the general public as well as senior citizens. One hundred fifty-one days to 184 days: 4.25% for the general public and senior citizens. One hundred eighty-five days to 210 days: 4.50% for the general public and senior citizens. Two hundred eleven days to 270 days: 4.50% for both the general public and senior citizens.
#4
FD schemes ranging between 9-15 months
Two hundred seventy-one days to 289 days: 4.70% for both the general public and senior citizens. Two hundred ninety days to less than one year: 4.70% for the general public and senior citizens. One year to 389 days: 4.95% for the general public and senior citizens too. Three hundred ninety days to less than 15 months: 4.95% for the general public and senior citizens.
#5
New rates of interest for schemes beyond a year
Fifteen months to below 18 months; 18 months to two years: 5.00% for the general public as well as senior citizens. Two years and one day to three years: 5.25% for both the general public and senior citizens. Three years and one day to five years; five years and one day to 10 years: 5.25% for the general public and senior citizens as well.
Information
More hikes likely if RBI increases repo rates
The newly released ICICI Bank FD prices come just days after the bank raised the rates for deposits of below Rs. 2 crore. More such hikes are likely if the RBI raises its repo rates further during its MPC meetings.