ICICI Bank hikes FD interest rates by up to 40 bps

Following the rate hike trend, ICICI Bank also has hiked fixed deposit (FD) interest rates for amounts below Rs 2 crore on select tenors by up to 40 basis points. The new rates are effective from August 19, 2022. ICICI Bank will now offer interest rates between 2.75 percent and 6.10 percent for tenors from 7 days to 10 years for regular citizens.

According to the bank website, term deposits with a maturity of one year to two years will now fetch 5.50 percent interest from earlier 5.35 percent, an increase of 15 basis points, while those with a maturity of two years one day to 3 years will fetch 5.60 percent interest from 5.50 percent.

ICICI Bank will now offer a 6.10 percent interest rate on three-years one-day to five years fixed deposits from 5.7 percent, an increase of 40 bps, and a 5.90 percent interest rate five years one day to ten years, the interest rate offered from earlier 5.75 percent. The bank is offering 6.10 percent on tax saving FDs..


ICICI FD interest rates

Other banks
Many big banks including SBI, HDFC Bank, PNB have already hiked their fixed deposit interest rate after the Reserve Bank of India hiked repo rate by 50 basis points in its August monetary policy review meeting.

FD ladder
Making an FD ladder is one of the best ways to manage fixed income instruments. Particularly senior citizens who rely mainly on these products for investing may benefit from using it to boost return and manage liquidity. When creating an FD ladder, you divide a large FD into smaller ones rather than booking it for an extended period of time.