The private sector lender has increased interest rates on fixed deposits below Rs 3 crore by up to 10 basis points. Following the revision, senior citizens can earn a maximum interest rate of 7.20%, while general customers can receive up to 6.60%, depending on the deposit tenure.
The revised rates cover selected medium and long-term deposits, including the five-year tax-saving fixed deposit. Customers considering a new FD may want to compare the updated rates across different maturity periods before deciding where to invest.
Which FD Tenures Have Received an Interest Rate Increase?
The bank has revised rates across several deposit categories. For general customers, the interest rate on deposits with tenures ranging from two years and one day to three years has increased from 6.45% to 6.55%.
For deposits with a maturity period of three years and one day to five years, the rate has moved up from 6.50% to 6.60%. The same revised rate of 6.60% now applies to deposits ranging from five years and one day to ten years.
ICICI Bank has also raised the interest rate on its five-year tax-saving FD from 6.50% to 6.60%.
| FD Tenure | Previous Rate | Revised Rate |
|---|---|---|
| 2 years 1 day to 3 years | 6.45% | 6.55% |
| 3 years 1 day to 5 years | 6.50% | 6.60% |
| 5 years 1 day to 10 years | 6.50% | 6.60% |
| 5-year tax-saving FD | 6.50% | 6.60% |
The increase is 0.10 percentage point, equivalent to 10 basis points, in each of these categories.
Interest Rates on Short-Term Fixed Deposits
Depositors looking for shorter investment periods will continue to have several FD options. The rates vary according to how long the money remains with the bank.
The interest rates for general customers are as follows:
| FD Tenure | Interest Rate |
|---|---|
| 7 to 45 days | 2.75% |
| 46 to 90 days | 4.00% |
| 91 to 184 days | 4.50% |
| 185 days to less than 1 year | 5.50% |
| 1 year to less than 18 months | 6.25% |
| 18 months to 2 years | 6.30% |
These options may suit customers who do not want to lock their savings into long-term deposits. However, the final return depends on the selected tenure and the applicable terms of the FD.
Revised FD Rates for Senior Citizens
Senior citizens receive higher interest rates than general depositors under the bank’s applicable FD scheme. The latest revision has also improved returns for this category.
For deposits ranging from two years and one day to three years, the interest rate has increased from 6.95% to 7.05%. On deposits with tenures between three years and one day and five years, the revised rate is now 7.20%, compared with 7.10% earlier.
The rate for deposits from five years and one day to ten years has moved up from 7.00% to 7.10%. Meanwhile, the five-year tax-saving FD rate for senior citizens has increased from 7.10% to 7.20%.
| FD Tenure | Previous Rate | Revised Rate |
|---|---|---|
| 2 years 1 day to 3 years | 6.95% | 7.05% |
| 3 years 1 day to 5 years | 7.10% | 7.20% |
| 5 years 1 day to 10 years | 7.00% | 7.10% |
| 5-year tax-saving FD | 7.10% | 7.20% |
What Should Depositors Consider Before Investing?
A higher FD rate can improve returns, but customers should not select a deposit solely on the basis of its headline interest rate. The investment period, premature withdrawal conditions, tax treatment and individual financial requirements are also important.
Tax-saving FDs generally come with a five-year lock-in period and may qualify for deductions under Section 80C, subject to the applicable tax regime and eligibility rules. Customers should review the bank’s latest terms before opening an account.
Conclusion
ICICI Bank’s latest FD revision brings a 10-basis-point increase across selected deposit tenures below Rs 3 crore. General customers can now earn up to 6.60%, while senior citizens can receive up to 7.20% on eligible deposits. Those planning to invest should compare maturity periods, withdrawal conditions and tax implications before making a decision.