Home / Money / Personal Finance /  Senior citizens special fixed deposit of ICICI Bank going to end next week

In its most recent Monetary Policy Committee (MPC), the Reserve Bank of India (RBI) upped the repo rate for the fourth time continuously since May by 50 basis points, bringing it to 5.90% at this time. A couple of banks have already begun raising interest rates on fixed deposits as a result of the RBI's increase in the benchmark lending rate. This is phenomenal news for retail investors, especially senior citizens, as they may now earn returns on long-term deposits that outpace inflation. But ICICI Bank offers a special fixed deposit programme to give older persons larger interest rate benefits, however, the scheme is going to end next week.

ICICI Bank Special FD

In order to give senior citizens higher interest rates at a time when fixed deposit rates are at low levels, the top private sector launched ICICI Bank Golden Years FD in May 2020. However, because of the Covid-19 epidemic, the special FD programme was repeatedly extended; as a result, ICICI Bank will no longer provide Golden Years FDs starting on October 7, 2022.

Under the Golden Years FD scheme, ICICI Bank provides resident senior citizen customers with an additional 0.10% in annual interest over and above the current additional rate of 0.50%. The higher rate will be offered on newly created accounts as well as deposits renewed during the active period of the scheme. The plan will expire on October 7, 2022.

The ICICI Bank Golden Years FD has a tenure of 5 years and 1 day up to 10 years. On this tenure, the general public will get an interest rate of 6.00% but ICICI Bank offers 6.60% for senior citizens which is an additional benefit of 60 bps for them over and above the regular card rates. On a single FD established with ICICI Bank for less than 2 crore, the ICICI Bank Golden Years FD rates are applicable.

Senior citizens need to be aware of the penalty that ICICI Bank charges on premature withdrawals of Golden Years FDs. ICICI Bank says that “In case a Fixed Deposit is opened and the above scheme is prematurely withdrawn/closed after, on or after 5 years 1 day, the applicable penal rate will be 1.10%. In case the deposit opened in the above scheme is prematurely withdrawn/closed before 5 years 1 day, the prevailing premature withdrawal policy will be applicable."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 Special FD
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ICICI Bank Special FD (icicibank.com)

Following the RBI's move to raise the repo rate, ICICI Bank hiked its interest rates on fixed deposits of less than 2 Cr on September 30, 2022. ICICI Bank upped its interest rate by up to 25 bps on a range of tenors. ICICI Bank is now giving an interest rate on deposits maturing in 7 days to 10 years that range from 3.00% to 6.00% for non-senior citizens and 3.50% to 6.60% for senior citizens. Following the most recent revision, deposits that mature in 3 years, 1 day to 5 years will now generate a maximum interest rate of 6.10% for the general public and 6.60% for senior citizens at ICICI Bank.

ABOUT THE AUTHOR

Vipul Das

Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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