ICICI Bank Extends Special FD Scheme For Senior Citizens ‘ICICI Bank Golden Years FD’ to October 31, 2023

ICICI Bank has again extended its special fixed deposit scheme for senior citizens named ‘ICICI Bank Golden Years FD’ from April 7, 2023, to October 31, 2023. 

According to the lender, ICICI Bank Golden Years FD’ will now be available and valid for subscription till 31 October 2023. 

ICICI Bank Golden Years FD

Under ICICI Bank Golden Years FD, senior citizens are entitled to get an additional interest rate of 0.10% for a specific time on top of the existing additional rate of 0.50% granted on retail term deposits. This special rate is applicable on fixed deposits with a maturity period of five years and up to 10 years. Currently, senior citizens can fetch an interest rate of 7.5% if they invest in this scheme. According to the ICICI Bank website, the additional rate will be available on fresh deposits opened and deposits renewed during the scheme period. The special rate will be applicable on a single FD opened via ICICI Bank of an amount below Rs 2 crore. 

Premature withdrawal:

The scheme ICICI Bank Golden Years FD gives you the option of premature withdrawal. In case an FD is opened and the concerned scheme is prematurely withdrawn or closed after, on or after 5 years and one day, the applicable penal rate will be 1.00% effective from March 14, 2023. However, if the deposit opened in the said scheme is prematurely withdrawn or closed before 5 years 1 day, the existing premature withdrawal policy would be applicable, says the ICICI Bank website.

Earlier this month, the Reserve Bank of India surprised everyone when it hit the pause button on the increasing interest rate in the country. The RBI kept the repo rate unchanged at 6.5%

So, what should investors do now?

Existing FD depositors should continue with their FDs till they mature without considering the changes in the repo rate. 

It is usually good for investors if they opt for pre-mature FD closure only if there is a significant difference between the new FD rates and the effective rates on their existing fixed deposits after taking into account the premature withdrawal penalty.

Meanwhile, those planning to open new FDs should compare the FD rates offered by other banks as well. As of now, various small finance banks (SFBs) and even a few private sector banks are offering the highest FD slab rates of 7.5% per year or above.