ICICI Bank raises interest rates on fixed deposits

Private lender ICICI Bank on Monday hiked interest rates on fixed deposits under ₹2 crore. The new rates will be effective from May 16.

As per the bank's website, fixed deposits with maturity ranging from five years and one day to 10 years will fetch 5.75% interest compared with 5.6% earlier. Deposits having maturity period over three years and up to five years will attract 5.60% interest compared with 5.45% earlier.

The five-year tax saving fixed deposit which offers tax benefit under Section 80C of the Income Tax Act will now fetch 5.60% interest as against 5.45% 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 offers 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. The interest rate is 3.5% for FDs with a maturity of 91 days to 184 days, and 4.40% for FDs with a maturity of 185 days to 289 days. FDs having a maturity period of 290 days to less than 1 year will now fetch 4.50% interest.

Deposits with maturity period ranging from one year to two years will fetch 5.1% interest as against 5% earlier.

FDs with a maturity period of two years and one day to three years will get customers 5.40% interest as against 5.20% earlier.

The bank offers 0.50% higher interest rates to senior citizen customers compared with non-seniors.

After the revision in rates, senior citizens will get 6.35% interest on fixed deposits with a maturity period ranging from five years and one day to 10 years. For FDs maturing between three and five years, senior citizen customers of the bank will receive 6.10% interest.

The bank is also running a 'Golden Years FD Rates' scheme for resident senior citizens. As part of the scheme, such customers will get an additional interest rate of 0.10% per annum 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. The scheme is eligible for FDs having tenure above five years.

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.