ICICI fixed deposit accounts help you earn more money in interest on your surplus funds when compared to simply leaving money in a savings account. To learn the latest interest rates offered by ICICI on fixed deposits.

ICICI fixed deposits

Here are some of the main features of a fixed deposit that applies to all banks in India in general, including ICICI.

A fixed deposit or term deposit is one of the safest and most popular forms of investment in India. It has been traditionally seen as a safe and reliable way of investing money, with none of the volatility and risks associated with other investments like the stock market. It is simple to open a fixed deposit and requires minimal documentation. Fixed deposits are offered by banks, other financial institutions and corporates.

A fixed deposit (FD) is a financial instrument that offers a higher interest rate when compared to interest earned in a regular savings account. If you have some extra money and wish to invest it in a low-risk opportunity, a fixed deposit is a good option.

Interest rate on fixed deposits: The interest rate varies from bank to bank depending on

a.the amount deposited

b.period of deposit

c.senior citizen eligibility

In India, senior citizens enjoy a higher interest rate on their Fixed Deposits.

Period: A fixed deposit – as the name suggests – is for a fixed term, and could range from 7 days to 10 years. On maturity of your deposit, you are paid your original deposit amount plus the interest earned.

Amount: The amount to be invested can be deposited only once. If you want to invest any additional amounts, you will need a new FD account.

Maturity: On maturity, the amount is credited to the customer’s specified bank account (if the fixed deposit is issued by another financial institution or a corporate).

Withdrawals: Sometimes, if you have an urgent need for the money, or if you spot a better investment opportunity, you might want to break your FD and withdraw the entire sum before the maturity date.  If you withdraw your FD before the maturity date, you will need to pay a penalty.

In other cases, you might only want to make a partial withdrawal – i.e. remove only a small amount of your total deposit. In such cases too, you will be charged a penalty and paid interest only on the remaining amount.

Renewals: On maturity, an FD can be renewed for a different tenure, or it can be auto-renewed in the absence of specific instructions.

Tax: You can invest your money in tax-saving fixed deposit schemes. However, keep in mind that you will need to keep your FD for a minimum number of years if you choose to invest in such a scheme.