ICICI Bank extends special fixed deposit scheme Golden Years FD; senior citizens can earn 7.5% At present, senior citizens can fetch an interest rate of 7.5 per cent if they invest in ICICI Bank Golden Years FD. Do note that the additional rate will be available on fresh deposits opened as well as deposits renewed during the scheme period
ICICI Bank has extended its special fixed deposit scheme for senior citizens — ICICI Bank Golden Years FD — to October 31, 2023. Earlier, it was extended till April 7, 2023.ICICI Bank Golden Years FD interest rate
Under ICICI Bank Golden Years FD, senior citizens get an additional interest rate of 0.10 per cent on top of the existing additional rate of 0.50 per cent granted on retail term deposits. This special rate is applicable on fixed deposits maturing between five years and up to 10 years. At present, senior citizens can fetch an interest rate of 7.5 per cent if they invest in ICICI Bank Golden Years FD. Do note that the additional rate will be available on fresh deposits opened as well as deposits renewed during the scheme period, according to the ICICI Bank website. The special rate will be applicable on a single FD opened through ICICI Bank of an amount less than Rs 2 crore, the bank said.
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Premature withdrawal
The premature withdrawal option is also available under ICICI Bank Golden Years FD. In case a fixed deposit is opened and the above scheme is prematurely withdrawn/closed after, on, or after five years and one day, the applicable penal rate will be 1.00 per cent with effect from March 14, 2023. In case the deposit opened in the above scheme is prematurely withdrawn/closed before five years and one day, the prevailing premature withdrawal policy will be applicable, according to the ICICI Bank website.
All the other features of term deposits as well as the terms and conditions associated with them are applicable, unchanged on this scheme as well, according to ICICI Bank. ICICI Bank Golden Years FD was originally launched in May 2020. The private sector lender has extended this scheme several times in the last three years.
Earlier, the State Bank of India (SBI) extended the special senior citizens FD scheme to June 30, 2023.
Fixed deposits (FDs) are still one of the most popular fixed-income investment options among risk-averse investors, especially senior citizens. Further, high interest rates in recent months have made fixed deposits even more attractive for traditional investors.
RBI holds repo rate: What should FD investors do now?
The Reserve Bank of India (RBI) increased repo rates by 250 basis points since May 2022. Since then, banks have also hiked the interest rates of fixed deposits significantly. However, RBI surprised the investors by holding the repo rate in its bi-monthly monetary policy meeting held on April 6. What should FD investors do now?
"Existing FD depositors should continue with their FDs till their maturity irrespective of the changes in the repo rate. They should opt for pre-mature FD closure only if they find a significant gap between the new FD rates and the effective rates on their existing FDs after accounting for the premature withdrawal penalty," said Naveen Kukreja, CEO and Co-founder, Paisabazaar.
"Those planning to open fresh FDs should compare the FD rates offered by as many banks as possible. Currently, many small finance banks and even a few private sector banks are offering the highest FD slab rates of 7.5 per cent per annum or above. Depositors should make their tenure selection decision based on their investment horizon and FD slab rates. They should opt for longer tenures only if the rates offered are significantly higher than medium-term or shorter tenures," he added.
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This story originally appeared on: India Times - Author:Faqs of Insurances
