In its most recent Monetary Policy Committee (MPC), the Reserve Bank of India (RBI) hiked the repo rate by 50 basis points for the fourth time in a row since May, taking it to 5.90% this time. As a result of RBI’s increase in the benchmark lending rate, some banks have started raising interest rates on fixed deposits. This is unprecedented news for retail investors, especially senior citizens, as they can now earn returns on long-term deposits that outpace inflation. But ICICI Bank offers a special fixed deposit program to pass on higher interest rate benefits to older persons, however, this scheme is going to expire next week.
ICICI Bank Special FD
To offer higher interest rates to senior citizens at a time when fixed deposit rates are at a low level, the apex private sector launched ICICI Bank Golden Years FD in May 2020. However, due to the Covid-19 pandemic, special FD The program was repeatedly extended; As a result, ICICI Bank will no longer offer Golden Years FDs with effect from October 7, 2022.
Under the Golden Years FD scheme, ICICI Bank offers an additional 0.10% in annual interest over and above the current additional rate of 0.50% to resident senior citizen customers. Higher rates will be offered for newly created accounts as well Deposit Renewed during the active period of the plan. This scheme will end on 7 October 2022.
ICICI Bank Golden Years FD The tenure ranges from 5 years and 1 day to 10 years. In this tenure, the general public will get an interest rate of 6.00%, but ICICI Bank offers 6.60% for senior citizens which is an additional benefit of 60 bps over and above the regular card rates for them. on single FD Established with ICICI Bank for less than 2 crore, ICICI Bank Golden Years FD rates are applicable.
Senior citizens should be aware of the penalty that ICICI Bank charges on premature withdrawal of Golden Years FD, ICICI Bank states that “If a fixed deposit is opened and withdrawn from the above scheme prematurely on or after 5 years 1 day, the applicable penalty rate will be 1.10%. If the deposit opened in the above scheme is If the amount is prematurely withdrawn/closed before 5 years 1 day, the prevailing premature withdrawal policy will be applicable.”
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After RBI’s move to increase the repo rate, ICICI Bank increase your interest rates on Fixed deposit less than 2 crore on September 30, 2022. ICICI Bank increased its interest rate by up to 25 bps for a period of up to 25 bps. ICICI Bank is now offering interest rates on deposits maturing in 7 days to 10 years which range from 3.00% to 6.00% for non-senior citizens and 3.50% to 6.60% for senior citizens. After the most recent revision, deposits maturing in 3 years, 1 day to 5 years will now generate a maximum interest rate of 6.10% for general public and 6.60% for senior citizens in ICICI Bank.
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