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A Term deposit with features of a Cumulative Fixed Deposit in Investment phase and Fixed Deposit with Monthly Income in Payout phase.
-
Rate of Interest and
Tax Treatment -
Payout Phase
Fixed Deposit -
Duration of deposit
Rate of Interest and Tax Treatment
- The Deposit will earn prevailing fixed interest rates for the entire deposit period, i.e. same rate of interest in Investment phase and Payout phase. In case the rate of interest increases or decreases, the deposit will continue to earn the contracted rate of interest on both the Investment phase and the Payout phase.
- The rate of interest will be applicable as per the total tenure, including both Investment phase and Payout phase. E.g. If the total tenure of the deposit is 8 years bifurcated into 4 years Investment phase and 4 years Payout phase, the rate of interest applicable for the deposit in Investment phase as well as Payout phase will be the same as applicable for 8 years at the time of deposit opening as the customer has entered in contract for 8 years.
- Interest earned on the Deposit during tenure will be subject to Tax Deducted at Source (TDS).
Payout Phase
- On completion of the Investment deposit phase, 30% of the entire maturity proceeds (FD amount + interest), as applicable, shall be paid upfront on completion of the Investment phase and balance amount shall be reinvested in an FD with monthly Payout option for the Payout period.
- Monthly Payouts will be credited to the Savings Account of the customer.
- The tenure of this deposit consists of an investment phase and a payout phase (also called benefit phase).
- The minimum period for the investment phase is 24 months. Thereafter, you can increase the investment phase in multiples of 1 month.
- The minimum period for the payout phase is 24 months. Thereafter, you can increase the payout phase in multiples of 12 months.
- The tenure of the deposit is a combination of the investment phase and payout phase. Once specified by you, the depositor, it cannot be changed.
Illustration
Here is an example that will explain how it works:
Investment Phase |
Payout Phase |
|||||
Installment Amount |
Tenure |
Rate of Interest |
Total Corpus |
Lump-Sum Payment |
Tenure |
Monthly Payout |
100000 |
24 months |
5.35% |
110,093 |
33028 |
24 months |
3,393 |
200000 |
24 months |
5.35% |
220,186 |
66056 |
24 months |
6,786 |
Disclaimer: The numbers and data used for the above calculation are for illustrative purposes only, original numbers may vary.
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Frequently Asked Questions (FAQs) About Fixed Deposits
What is a Fixed Deposit?
A Fixed Deposit (FD) is an investment product offered by Banks and NBFCs to their customers. An FD promises you guaranteed returns that are calculated basis the interest offered at the time of opening an FD Account. Interest rates may differ depending upon the tenure and the amount you are opting for.
What are the types of FDs offered by ICICI Bank?
ICICI Bank offers two types of FDs:
Traditional Fixed Deposit:Â Interest amount is credited at regular intervals, i.e., Quarterly or Monthly. Customer can opt for Monthly/Quarterly payout at the time of creating the Fixed Deposit
Cumulative Fixed Deposit:Â Customer will receive a lump sum amount after maturity. The interest accrued is added back to the principal amount at quarterly intervals.
Who can invest in ICICI Bank Fixed Deposits?
Individuals and entities mentioned below are eligible to apply for a regular Fixed Deposit online:
Residents
Hindu Undivided Families
Sole Proprietorship Firms
Partnership Firms
Limited Companies
Trust Accounts
Non-Resident Indians
Minors with Guardianship.
Also, the Savings Account should be KYC verified.
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