Overview of ICICI Bank
ICICI Bank is India's largest multinational banking and financial services company belonging to the private sector. It is headquartered in Vadodara, Gujarat, India. ICICI Bank was initially backed by ICICI Limited, an Indian financial institution, in 1994 and was its fully-owned subsidiary. By 2014 it became the second largest bank in India in terms of assets owned as well as its market capitalisation. ICICI Bank offers a wide range of personal and corporate banking products and services to its customers.
Recurring Deposit from ICICI Bank
Recurring deposits are a good investment option for small investors if they do not have a lump sum amount to invest at one go, but wish to save a smaller sum of money on a regular basis. As one of the leading private sector banks in India, ICICI Bank offers its customers highly flexible RD options at competitive interest rates. ICICI Bank RD is a good savings solution for investors who want high returns on short term investments with low constraints on liquidity. The bank offers both traditional RD scheme, as well as Flexible Recurring Deposit Scheme called i-Wish which allows an optimal balance between liquidity and returns. Flexible holding periods and easy payouts let depositors plan their investments to suit their individual goals. A Recurring Deposit account with ICICI Bank provides additional benefits such as: loan against the deposit, Tax Deduction at Source (TDS) is not applicable, etc.
Recurring Deposit schemes offered by ICICI Bank
ICICI Bank offers Recurring Deposits to customers with many features which include recurring accounts receivable, recurring account payable, recurring account fees checking and recurring debit account transaction details. It also offers the customer the facility of scheduling regular payments to their Recurring Deposit account online. ICICI Bank offers regular RD scheme as well as a Flexible RD scheme. The Regular Recurring Deposit requires the customer to make a fixed amount of monthly installments regularly, for a fixed period of time. i-Wish is a flexible Recurring Deposit offered by ICICI bank that has a high liquidity ratio. This has flexible options that lets you save for your goals, and you can deposit money as and when you have the funds, and earn better interest rates just like a Fixed Deposit.
Features of ICICI Bank Recurring Deposit
The features of an ICICI Bank Recurring Deposit are:
- Rate of interest as high as fixed deposit interest rates.
- Additional facilities to check on recurring account receivable, recurring account payable, recurring account fees and all recurring debit account transactions.
- Opportunity to take a loan against the ICICI Bank Recurring Deposit.
- No Tax Deduction at Source (TDS).
- The minimum balance in the account should be Rs. 500 per month. Deposits thereafter can be made in multiples of Rs.100.
- Deposits should be made for a minimum period of 6 months, and thereafter in multiples of 3 months.
- Option to place a nominee is available.
- Transfer funds to your Recurring Deposit Account in seconds through Internet Banking.
- Through your online Recurring Deposit Account you can track your investments and process your recurring payments
- The Recurring Deposit also comes with a nomination facility.
- Indian citizens can apply.
- The minimum balance of deposit required is Rs. 500 per month and thereafter, in multiples of Rs. 100.
In order to start a Recurring Deposit with ICICI Bank, customers need to provide the following documents as Identity Proof and proof of residence.
Any of the following can be submitted as proof of identity:
- Copy of Passport
- PAN card
- Voter’s ID
- Driving license
- Government ID card
- Photo ration card
- Senior citizen ID card
Any of the following can be submitted as proof of residence:
- Telephone bill
- Electricity bill
- Bank Statement with Cheque
- Certificate/ ID card issued by Post office
Interest rates offered on ICICI Bank’s Recurring Deposit
ICICI Bank offers competitive interest rates on its RD schemes for both its general customers as well as for senior citizens, making it easy to earn more returns on investment over a short period of time. Interest rates vary with the tenure for which the deposits are made, with higher interest accumulation for senior citizens. Interest rates range from 7.75% up to 8.50% for normal customers, and for senior citizens the interest rates range from as high as 8.25% up to 9%.
Flexible RD from ICICI Bank
ICICI offers its unique flexible RD scheme called i-Wish to its customers wherein there is no penalty or charges for missed payments. This deposit allows customers to save any amount at any time. It offers flexibility to choose the the amount to be deposited and has no time constraints. It offers better returns since it gives the same interest as a Fixed Deposit. It also offers the feature of ‘Sharing’ goals wherein your friends and family can know about your goals and can help you out with the same with contributions.
RD For NRIs/NREs
ICICI Bank offers RD for NRE’s as well. NRE Recurring Deposit Account is maintained in INR and is an great option for NRIs to increase savings by investing a small amount of money every month.
Features and Benefits
- Account can be funded in a quick and easy manner by transferring funds every month from your NRE Savings account.
- Flexible monthly installments: From Rs. 5,000 to Rs.100,000 and in multiples of Rs.1,000.
- Flexible tenure options range from a year up to 10 years.
- Round the clock access through free Internet banking.
- High liquidity of funds since funds are fully repatriable.
- High tax benefits since interest earned through Recurring Deposits is not taxable in India.
- Attractive exchange rates during conversion of foreign currency into rupees.
Nomination for RD
- Nomination facility is available for Recurring Deposits.
- A customer is entitled to have one Nominee for a deposit account held individually or jointly.
- On behalf of a minor, a legally empowered guardian can operate the minor's account and file a nomination .
- By filling up the form prescribed under the Banking Companies (Nomination) Rules 1985, applicants can make nomination.
- The nomination details can be changed by making a declaration which will be in effect by submitting the appropriate form.
How to open a Recurring Deposit account in ICICI Bank?
Customers can open a Recurring Deposit account with ICICI Bank in any of the following ways:
- Directly through an ICICI branch.
- Customers can open a RD with ICICI through the bank’s Internet Banking facility in the following manner:
- use the Internet Banking user ID and password to log into the bank’s web portal.
- Under "My Accounts" section, click on ‘Open Fixed/Recurring Deposit’.
- Click on open Recurring Deposit.
- ICICI Bank Customer Care can also assist customers with opening a Recurring Deposit account. Verify your account details and enter your Debit Card number & PIN and speak to Phone Banking Officer to seek assistance in opening a Recurring Deposit account.
- iMobile offers customers the convenience of making safe transactions. Customers can not only check balance, transfer funds or pay bills, but can also open a Recurring Deposit account through iMobile.
What is the penalty on delayed instalment?
- For all delayed installments, penalty is charged on monthly interest at the rate of Rs.12 per Rs.1000.
- For the purpose of calculating the interest, fraction of a month will be treated as a full month.
- The total interest chargeable shall be deducted from the total amount of interest payable at maturity of the deposit.
- What is the minimum & maximum amount to open a Recurring Deposit account in ICICI Bank? You can open a Recurring Deposit account for a minimum deposit of Rs 500/- per month. There is no maximum limit.
- What are the minimum or maximum period for RD in ICICI Bank? You can open a Recurring Deposit for a minimum period of 6 months, after which they can extend the tenure in multiples of 3 months, and up to a maximum period of not more than 10 years.
- Taxability for RD: Is TDS (Tax Deductible at Source) applicable on Recurring Deposits? No, TDS is not applicable on Recurring Deposits.
- Does the RD account of ICICI Bank provide loan against the deposit? Yes, Recurring Deposit account with ICICI Bank offers Loan Facility against RD amount in the Bank.
- Do Senior citizens get any extra benefit on Recurring Deposits? Yes, senior citizens do get extra benefits on Recurring Deposits in the form of higher interest rates.
- Can I make premature withdrawal of RD? If the Recurring Deposit is closed before completing the original term of the deposit, interest will be paid at the interest rate applicable on the date of deposit, for the period during which the deposit has remained with the Bank. In the event of premature withdrawal of the deposit, a penal rate of interest is applicable.
- How is the penalty on premature withdrawal of the Recurring / i-Wish deposits calculated? In case of premature withdrawal, interest will be calculated for the period the deposit has actually remained with ICICI Bank.
Know the Current Recurring Deposit Rates:
- ICICI Recurring Deposit Rates
- ICICI Bank RD Interest Rate Comparison with Other Banks and Institutions