ICICI Bank on Wednesday announced higher interest rates for fixed deposits (FD) of up to Rs 1 crore on select maturities. The new interest rates, applicable to retail term deposits, will take effect from November 15, 2018, the private sector banking major said in a statement. After this revision, the bank will pay interest at the rate of 7.5 per cent on fixed deposits of above two years up to three years, ICICI Bank further said. Wednesday's increase will raise interest rates applicable to domestic, NRO (non-resident ordinary) and NRE (non-resident external) term deposits of up to Rs 1 crore by 25 basis points, or 0.25 per cent.
"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 per cent p.a. (8.00 per cent p.a. for senior citizens)," said Pranav Mishra, senior general manager and head-retail liabilities group, ICICI Bank.
ICICI Bank shared details of the changes in fixed deposit interest rates:
| Maturity Period | Interest rates (per annum) | |
|---|---|---|
| Term deposits of less than Rs 1 crore | ||
| New rates (with effect from November 15) | Increase in basis points (bps) | |
| 7 days to 14 days | 4.00% | - |
| 15 days to 29 days | 4.25% | - |
| 30 days to 45 days | 5.50% | - |
| 46 days to 60 days | 6.00% | 25 bps |
| 61 days to 90 days | 6.25% | 25 bps |
| 91 days to 120 days | 6.25% | 25 bps |
| 121 days to 184 days | 6.25% | 25 bps |
| 185 days to 289 days | 6.50% | - |
| 290 days to less than 1 year | 6.75% | - |
| 1 year to 389 days | 6.90% | 15 bps |
| 390 days upto 2 years | 7.10% | 10 bps |
| 2 years 1 day upto 3 years | 7.50% | 25 bps |
| 3 years 1 day upto 5 years | 7.25% | - |
| 5 years 1 day upto 10 years | 7.00% | - |
| 5 years (80C FD) | 7.25% | - |
At present, ICICI Bank offers term deposits - also known as fixed deposits - with various maturities, ranging from seven days to 10 years. The bank offers a 50 basis points higher interest rate to senior citizens across term deposits of all maturities, as compared to the general public.
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