NEW DELHI: Making it possible to invest in mutual fund SIPs through fixed deposits, private sector lender ICICI Bank today announced the launch of its new range of FDs in which the interest is automatically invested in mutual fund SIPs.
Termed ‘FD Invest’, ICICI Bank’s new offering will help customers invest the interest earned in FDs in monthly Systematic Investment Plans (SIPs) of a mutual fund of their choice from ICICI Prudential Asset Management Company, the bank said in a statement.
Available with an FD of at least ₹2 lakh for a minimum tenure of one year, the FD safeguards the principal amount and puts only the interest earned in mutual funds.
“With the prevailing volatility in financial markets, we see a renewed interest by customers to invest in fixed and recurring deposits as they offer a combination of attractive interest rates, liquidity, safety of capital and assured returns," Pranav Mishra, head – retail liabilities group, ICICI Bank, said.
ICICI Bank’s ‘FD Life’ deposits offer the dual benefit of investment growth via FD and security through a free term life insurance of one year for the FD holder.
The bank is also offering an instant platinum credit card against fixed deposit without any joining or annual fees.
Mishra said the new unique term deposits have been specially designed to meet life-stage needs and goals of customers, including term insurance, saving for down-payment of home and car, retirement planning, child education and fulfilling travel aspirations.