ICICI Bank extends special senior citizen FD Scheme to this date

ICICI Bank has extended its special senior citizen FD scheme to October 31, 2022, from October 7, 2022. In ICICI Bank’s Golden years FD scheme, resident senior citizen customers will get an additional interest rate of 0.10% 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,” stated the ICICI Bank website.

Golden Years FD Rates

The Golden Years FD tenure ranges from five to ten years. This scheme was launched on May 20, 2020, and will run through October 31, 2022. These FDs apply to a single FD having a balance less than Rs.2 crore.

Premature withdrawal on Golden years FD
According to the ICICI Bank website, “Premature withdrawal on FD: In case a Fixed Deposit is opened and the above scheme is prematurely withdrawn/closed after, on or after 5 years 1 day, the applicable penal rate will be 1.10%. In case the deposit opened in the above scheme is prematurely withdrawn/closed before 5 years 1 day, the prevailing premature withdrawal policy will be applicable.”

ICICI Bank interest rates
ICICI Bank provides interest rates as high as 6.60% p.a. for Senior Nationals (those over the age of 60) and up to 6.10% p.a. for citizens under the age of 60.

As per the bank website, “With the current uncertainty and highly volatile market, you can always rely on ICICI Bank’s Fixed Deposits for assured and guaranteed returns. An ICICI Bank FD is one of the safest FDs and rated as “AAA”, beating any competition with ease.”

How is the interest on Fixed Deposit (FD) calculated?
Interest on Fixed Deposits is computed based on the FD's tenure and the current interest rate in effect at the time the FD is opened.

According to the ICICI Bank website, here is how to compute interest:

• Cumulative FD: Interest is calculated for the quarter and compounded/reinvested to the principal amount. Interest for the next quarter is calculated on the accumulative amount.
• Traditional FD with Quarterly interest payout option: Simple interest is calculated and paid at the end of each quarter
• Traditional FD with Monthly interest payout option: Interest is paid at the discounted value and at the end of each month
• Short Term FD: Interest is calculated on simple interest basis.