Recurring Deposits (RDs) are an effective way to save regularly and earn a steady income through interest. ICICI Bank, one of the leading private sector banks in India, offers attractive RD schemes with competitive interest rates and flexible tenures. This detailed guide provides comprehensive information on ICICI Bank RD interest rates, features, benefits, and more.
A Recurring Deposit is a financial product provided by banks, enabling individuals to deposit a fixed amount of money each month for a predetermined tenure. Upon maturity, the accumulated amount, along with the interest earned, is returned to the depositor.
ICICI Bank provides competitive interest rates on its Recurring Deposit schemes, ensuring that investors receive good returns on their savings. These rates vary based on the tenure of the RD and are periodically updated to align with market conditions.
As of the latest update, the interest rates for ICICI Bank Recurring Deposits are as follows:
| Tenure | Regular Interest Rate | Senior Citizen Interest Rate |
| 6 months to less than 9 months | 4.75% | 5.25% |
| 9 months to less than 1 year | 5.00% | 5.50% |
| 1 years to less than 2 years | 5.25% | 5.75% |
| 2 years to less than 3 years | 5.50% | 6.00% |
| 3 years to less than 5 years | 5.75% | 6.25% |
| 5 years to 10 years | 6.00% | 6.50 |
Note: These rates are indicative and subject to change. Please check with ICICI Bank for the latest rates.
1. Flexible Tenure Options: ICICI Bank offers a wide range of tenure options for its Recurring Deposit (RD), allowing you to choose between 6 months to 10 years (120 months), depending on your savings goals.
2. Minimum Deposit Amount: You can open an RD with a minimum monthly deposit of ₹500, making it a suitable option for both small and large investors. There is no upper limit on the deposit amount.
3. Attractive Interest Rates: ICICI Bank provides competitive interest rates on RDs, typically ranging between 6.00% and 7.00%, depending on the chosen tenure. Senior citizens are entitled to an additional 0.50% interest rate.
4. Premature Withdrawal Facility: ICICI Bank allows you to withdraw your RD prematurely if needed, but a penalty will apply. However, partial withdrawals are not permitted, and the full amount must be withdrawn to close the account.
5. Nomination Facility: You can nominate a beneficiary while opening the RD account, ensuring the transfer of funds to the nominee in case of any unforeseen events.
6. Loan Against RD: ICICI Bank offers the option to take a loan or overdraft against the RD, allowing you to borrow up to 90% of the deposit amount. This provides liquidity without breaking the RD.
7. Auto-Debit Facility: The bank automatically deducts the monthly deposit from your savings account through an auto-debit facility, ensuring timely payments and reducing the risk of missed contributions.
You may also want to know about HDFC Bank RD Interest Rates
1. Guaranteed Returns: ICICI Bank RD assures returns by fixing the interest rate at the time of account opening, making it a safer investment option compared to market-linked instruments.
2. Encourages Regular Savings: With a fixed monthly deposit requirement, an RD encourages disciplined saving habits, helping you accumulate a substantial amount over time without feeling the burden of a lump-sum investment.
3. Senior Citizen Benefits: Senior citizens enjoy higher interest rates on ICICI Bank RDs, making it an attractive investment option for retirees seeking stable and secure income.
4. No Upper Cap on Deposits: ICICI Bank does not impose any upper limit on monthly deposits, enabling those with higher disposable incomes to save more and benefit from compounding interest.
5. Online and Mobile Banking Access: You can easily open, manage, and track your RD account through ICICI Bank’s internet and mobile banking platforms, offering convenience and ease of operation.
6. Loan Facility: In case of emergencies, you can avail a loan or overdraft against your RD, ensuring liquidity without having to break the deposit prematurely, preserving your investment.
7. Tax Benefits: Although the principal amount in an RD doesn’t qualify for tax deductions, the interest earned is subject to TDS (Tax Deducted at Source) only if it exceeds the threshold, allowing you to manage your tax liabilities effectively.
You may also want to know about IDBI Bank RD Interest Rates
Opening an ICICI Bank Recurring Deposit (RD) account online is a simple and seamless process. Here’s a step-by-step guide to help you get started:
First, you need to log in to your ICICI Bank Net Banking account using your credentials. If you are not registered for Net Banking, you can easily sign up for it online. Alternatively, if you are a new customer, you can open an Insta Save account to start using ICICI’s online services.
Once logged in, go to the ‘Deposits’ section of the dashboard. Under this, you’ll find the option to open a Recurring Deposit account. Select it to proceed further.
Now, you will need to fill in the required details for your RD account. This includes the monthly deposit amount (minimum ₹500), the tenure (ranging from 6 to 120 months), and the linked savings account that will auto-debit the monthly amount. ICICI Bank also offers the option to set up automatic payments and manage all your utility bills smartly from the same account.
You will be asked to choose how you want the interest to be paid, either on maturity or quarterly. You can also opt for auto-renewal of the RD upon maturity or have the amount transferred to your linked account.
You can nominate a beneficiary during the account setup process. Additionally, ICICI Bank provides a variety of products, including the ICICI Bank PPF account for long-term savings, ICICI Bank Home Loans, Two Wheeler Loans, Car Loans, and Personal Loans, offering you financial flexibility as you grow your savings.
After entering all the details, review the information carefully, including the tenure, interest rate, and payout preferences. Once satisfied, submit the application form to open your RD. Your savings account will automatically debit the amount each month, ensuring timely contributions.
If you face any difficulties during the online RD opening process or need more personalized assistance, ICICI Bank provides the option to ‘get a call back’ from a representative to guide you through the process.
In addition to these features, ICICI Bank offers several financial tools and resources, such as your Guide to Personal Finance, to help you make informed decisions and manage your wealth efficiently.
The combination of accessible services like recurring deposits and additional offerings like the ICICI Bank PPF account, personal loans, and other financial products helps you optimize both your savings and investments for the future.
To help investors plan their savings better, ICICI Bank provides an RD interest rates calculator. This tool allows you to calculate the maturity amount based on the monthly deposit amount, tenure, and applicable interest rates.
Premature withdrawal of an RD is possible, but it comes with certain penalties. The bank determines the penalty amount and applicable interest rate for premature withdrawal based on the duration you held the deposit.
ICICI Bank provides the facility to avail a loan against your RD. This is beneficial in times of financial emergencies, as it allows you to borrow up to 90% of the deposit amount without breaking the RD.
ICICI Bank Recurring Deposits are an excellent investment option for individuals looking to save regularly and earn attractive returns. With flexible tenures, competitive interest rates, and the convenience of online account opening, ICICI Bank RDs cater to the diverse financial needs of investors.
Whether you are saving for a specific goal or looking to build a disciplined saving habit, ICICI Bank RD is a reliable choice to grow your savings securely.
The minimum monthly deposit amount for an ICICI Bank RD is Rs. 500.
Yes, you can open an ICICI Bank RD account online through Internet banking.
The maximum tenure for an ICICI Bank RD is 10 years.
Yes, senior citizens are offered higher interest rates on ICICI Bank RDs.
Yes, premature withdrawal is allowed with applicable penalties.
Yes, you can avail of a loan of up to 90% of the deposit amount against your ICICI Bank RD.
While the interest earned is taxable, the deposit amount qualifies for deductions under Section 80C of the Income Tax Act, 1961.
The interest is compounded quarterly and added to the principal amount.
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