Private lender ICICI Bank on Thursday revised interest rates on fixed deposits. The new rates will be effective from January 20.
As per the bank’s website, fixed deposits with maturity ranging from five years and one day to 10 years will fetch 5.60% interest. Deposits having maturity period over three years and up to five years will attract 5.45% interest.
The five-year tax saving fixed deposit which offers tax benefit under Section 80C of the Income Tax Act will now fetch 5.45% as against 5.40% earlier. The maximum aggregate amount that can be invested in such FDs under a single PAN is ₹150,000 and the same cannot be closed prematurely before expiry of the lock-in period of five years.
The lender is offering a 2.50% interest rate on deposits with a maturity of 7 to 29 days, and 3% interest rate on FDs with a maturity of 30 to 90 days. 3.5% for FDs with a maturity of 91 days to 184 days, and 4.40% for FDs with 185 days to less than one year tenor.
Deposits with maturity period ranging from one year to two years will fetch 5% interest as against 4.9% earlier.
FDs with a maturity period of two years and one day to three years will get customers 5.20% interest.
The bank offers 0.50% higher interest rates to senior citizen customers compared to non-seniors. After the revision in rates, senior citizens will get a 3% interest rate on deposits with a maturity of 7 to 29 days, and 3.50% interest rate on FDs with a maturity of 30 to 90 days.
Similarly, 4% for FDs with a maturity of 91 days to 184 days, and 4.90% for FDs with 185 days to less than one year tenor. On one-year to 389 days FDs, the bank is offering 5.50%.
The bank is also running a ‘Golden Years FD Rates’ scheme for resident senior citizens. As part of the scheme, these customers will get an additional interest rate of 0.25% for limited time over and above the existing additional rate of 0.50% per annum. The additional rate will be available on fresh deposits opened as well as deposits renewed during the scheme period, the lender says.
ICICI Bank employees (including retired staff) get an additional 1% rate of interest on domestic deposit below ₹2 crore. These revised interest rates will be applicable for new deposits and renewal of existing term deposits.
Axis Bank, too, revised its interest rates on fixed deposits for select tenors from January 20. For FDs having maturity between five years and 10 years, the lender is now offering 5.75% interest rate.
According to its website, FDs with a term of one to two years will now earn between 5.10% and 5.25%, while those with a tenure of two to less than five years will get 5.40%.
Last week, India’s largest lender State bank of India had hiked interest rates on fixed deposits by up to 10 basis points.