ICICI Bank hikes term deposit rates by 0.25%The benefits of repo rate hike finally seem to be getting transferred to the customers. Close on the heels of State Bank of India and HDFC Bank hiking deposit rates, ICICI Bank has followed suit. ICICI Bank has announced an increase in interest rates of term-deposits of less than Rs 1 crore by upto 25 basis points (or 0.25%). The hike will take effect from November 15, 2018.

The rate hike by ICICI Bank is applicable across various tenors for domestic term-deposits. It is also applicable for Non Resident Ordinary (NRO) & Non Resident External (NRE) term-deposits.

With this increase, the bank offers a peak interest rate of 7.50% on term-deposits with a maturity of above two years upto three years. For the similar tenure, HDFC bank offers interest rate of 7.40% and SBI offers interest rate of 6.75%

Pranav Mishra, Senior General Manager & Head – Retail Liabilities Group, said, “With the prevailing volatility in financial market, we see renewed interest by customers to invest in fixed deposits which offer a combination of attractive interest rates, liquidity and assured returns. The 2-3 years tenor offers customers an opportunity to invest at a higher interest rate of 7.50% p.a. (8.00% p.a. for senior citizens). As a prudent asset allocation strategy, we feel customers should definitely look at capitalising on this opportunity.”

ICICI Bank offers term-deposits with various maturities starting as low as 7 days and upto 10 years. It also offers a 50 basis points higher interest rate to senior citizens across term-deposits of all maturities. This benefit to senior citizens is offered by HDFC Bank and SBI as well.

Customers can open a term-deposit at any of the bank’s branches. In addition, they can conveniently open a deposit from the comfort of their home/office or on-the-go, using the bank’s internet and mobile banking platforms as well as from ATMs and phone banking.

The new term-deposit rates effective from November 15, 2018 are as below:

Rate of Interest (% p.a.) w.e.f November 15, 2018 for Term Deposit Rates less than 1 Cr
Tenure Period New Rates to General Customers (%) Increase in Rate *Senior Citizen (%)
7 days to 14 days 4 4.5
15 days to 29 days 4.25 4.75
30 days to 45 days 5.5 6
46 days to 60 days 6 25 bps 6.5
61 days to 90 days 6.25 25 bps 6.75
91 days to 120 days 6.25 25 bps 6.75
121 days to 184 days 6.25 25 bps 6.75
185 days to 289 days 6.5 7
290 days to less than 1 year 6.75 7.25
1 year to 389 days 6.9 15 bps 7.4
390 days to 2 years 7.1 10 bps 7.6
2 years 1 day upto 3 years 7.5 25 bps 8
3 years 1 day upto 5 years 7.25 7.75
5 years 1 day upto 10 years 7 7.5
5 years (80C FD) 7.25 7.75
*Senior Citizen rates applicable only for domestic term deposit.
Priyanka Bharati

Priyanka Bharati is a senior personal finance analyst with RupeeIQ. She can be reached on priyanka.bharati@rupeeiq.com