ICICI Bank has increased the interest rate on FDs below Rs 2 crore by 25 basis points. These interest rates are offered on FDs with tenors of 7 days to 10 years. ICICI Bank has increased the interest rate on fixed deposits (FD Interest Rate), the interest rate on FDs of less than 2 crores has been increased by 25 basis points. These new rates are effective from September 26. Along with this, ICICI Bank offers its customers interest rates ranging from 2.75 percent to 6.10 percent on FDs.
These interest rates are offered on FDs with tenors of 7 days to 10 years. A bumper hike in FD rates followed the repo rate hike. FD rates have been steadily increasing ever since the Reserve Bank started increasing the Repo Rate.
According to the ICICI Bank website, the interest rate on FDs maturing from 91 days to 120 days, 121 days to 150 days and 151 days to 184 days has been increased by 25 basis points. Earlier the rate on these FDs was 3.75 percent. It has now reached 4 percent. But the interest rates on other FD schemes will remain the same as before. Senior citizens are being offered 50 basis points higher interest in FD scheme than general depositors.
In ICICI Bank FD you can withdraw interest every month. For this the customer has to contact the bank branch. Keep in mind that ICICI Bank FDs are taxable and customers have to pay tax as per their tax slab. TDS is deducted on interest earned on FD.
Therefore, to save tax, customers have the option of taking a tax saving FD. This FD has a tenure of more than 5 years. A tax saving FD can save up to Rs 46,800 in tax in a year.
After the change, ICICI Bank’s FD is fetching a minimum interest of 2.75 per cent and a maximum of 6.10 per cent. One can invest in long term FDs like FDs of more than 5 years to earn more interest. While ICICI Bank is offering 6.10 percent interest to general public, senior citizens below 60 years of age are getting the benefit of 6.60 percent interest.
More benefits for senior citizens
If you look at the long term FDs account, 18 months to 2 years FDs are paying 5.50% interest and senior citizens are getting 6% interest.
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5.60 percent on FD from 2 years one day to 3 years and 6.10 percent for senior citizens, 6.10 percent on FD from three years one day to 5 years and 6.60 percent for senior citizens, 5 years one day to 10 years 5.90 percent and 6.60 percent for senior citizens above 5 years Interest is offered at 5.10 per cent for most FDs and 5.60 per cent for senior citizens. A tax deduction of up to Rs 1.5 lakh can be availed on this FD under Section 80C.
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