ICICI Bank Flexi Fixed Deposit Scheme

ICICI Bank Flexi Fixed Deposit Scheme
Purpose	Open a savings account or current account with the required balance and link it to Flexi Deposit with an auto-reverse sweep facility
Minimum Balance	If a savings account, the initial deposit required is Rs. 10,000 If a current account, the initial deposit required is Rs. 20,000
Interest Rate	2.50% to 6.30%

ICICI Bank Flexi Fixed Deposit Scheme couples the benefit of Savings Account/Current Account and Fixed Deposit (FD). So, the interest-earning is higher. The Flexi Deposit comes with an auto-reverse sweep facility. The tenure of the FD is for a minimum of 15 days to 90 days. To avail of this product, the minimum balance to maintain in the current account is Rs. 20,000 or Rs. 10,000 for a savings account. If you do not maintain the minimum balance in the bank account, then Rs. 100 is chargeable as a penalty.

In this post, we will discuss ICICI Bank Flexi Fixed Deposit Scheme features, eligibility criteria, benefits, interest rates, and FAQs.

Features of ICICI Flexi Fixed Deposit Scheme

Here are the features of ICICI Flexi FD:

This scheme offers the benefit of both Current Accounts (CA) liquidity and Fixed deposits of a high rate of interest.
You have to open an FD account and link it to your current account for additional facilities.
The minimum deposit amount for ICICI Bank FD is Rs. 10,000.
Nomination and auto-renewal facilities are available for all account holders.
Maintain a minimum balance of Rs. 1,05,000 in the current account to link the FD.
The FD is opened in auto-renewal mode. So, the TD is renewable for the same period as the one you originally had selected.
The FD interest rate is applicable for the chosen tenure, prevailing as on the auto-renewal date.
The linked fixed deposits come under the same customer identity for the CA subscribers.
The fixed deposit you open will come with automatic reverse sweep features. The reverse sweep service activates when the current account balance goes below Rs. 1 lakh for a single account holder.
The reverse sweep breaking of FD is based on the Last-In, First-Out (LIFO).
For payment of withdrawals to savings or current account happens in the multiple of Rs. 1,000 if paid before the tenure ends.

Eligibility Criteria for ICICI Bank Flexi FD

Here are the ICICI Bank Flexi Fixed Deposit eligibility criteria:

A single and joint account is possible
Only resident individuals can take this facility
Minors can also apply through their guardian
The subscriber must hold a savings account or current account
This account has to be linked with the Flexi Deposit

Other Benefits of ICICI Flexi FD Scheme

Here are the reasons why you must invest in this product:

Get assured returns on the investment by parking your fund safely in the Flexi Deposit Scheme by the ICICI Bank.
The FD rates start from 5.5% and you can opt for flexible tenure between 7 days and up to 10 years. But the tenure of the Flexi FD scheme is between 15 days and 90 days.
You can invest through internet banking, ATMs, branches, customer care, or iMobile.
If you need an emergency fund, then you can apply for an overdraft against the FD.
Or, you can also choose partial withdrawal of available funds.
You can get a loan against FD up to 90 percent of the accrued interest and principal amount.

ICICI Flexi Deposit Interest Rates

Here are the details:

The ICICI Bank Flexi Deposit Interest Rate is as per the Term Deposit you choose.
For the general public, the rate is between 2.50% and 5.50%.
The same for senior citizens is between 3.00% and 6.30%.
The rates are per annum and depend on the deposited amount and chosen tenure.
The highest rate for general customers is 5.50% for a 10 years period.

Frequently Asked Questions about ICICI Flexi Fixed Deposit Scheme

Here is the ICICI Bank Flexi Fixed Deposit FAQs:

1. Why Invest in ICICI Bank Flexi FD Scheme?

Investment in FD products is a secure and safe decision. This is because you earn a fixed and assured interest over the principal amount and selected tenure. At maturity, you can withdraw the entire corpus, along with the accrued interest. You can also choose to get the interest pay-out periodically. In the Flexi Deposit scheme, the advantage is higher with the reverse sweep facility.

So, you already earn interest on the bank account you hold with the bank. At the same time, you can benefit from a Fixed Deposit, without having to invest in a lump sum. Because any amount over the balance threshold in the current account can be easily auto swept to the FD.

2. How Much You Can Invest in ICICI Bank FDs?

The minimum deposit amount for general customers is Rs. 10,000. The same for a minor account is Rs. 2,000.

3. What Are the Two Types of FD Plans Available?

You can choose a traditional plan. Here, you earn interest on a quarterly or monthly basis as per your choice. The maturity tenure is between 7 days and 10 years. Or, you can go for a reinvestment plan. Here, the interest is compounded quarterly. This accrued interest is then reinvested with the original investment amount (principal) with a maturity period between 6 months and 10 years.

4. How is the Interest Amount Calculated?

There are two types of interest calculation methods that the bank applies to FDs. These are traditional and cumulative. In traditional fixed deposits, the interest rate is applicable yearly (simple interest) for quarterly pay-outs. But the interest amount is payable at a discounted value if you want monthly pay-outs.

So, for traditional FDs with payments quarterly, the interest amount is calculated on the principal invested in the completed quarters. Then the interest is calculated for the balance period in the completed months. It is also additionally calculated for the incomplete month based on the number of days.

The interest is compounded quarterly for cumulative FDs on completed quarters. Simple interest applies on broken tenure beyond the completed quarters on the accrued deposit balance for the rest of the days.

5. What about Premature Withdrawal Interest Calculation?

Here, the calculation of interest on principal invested for the completed quarters. It is further calculated as per the balance tenure. Also, there is a consideration for the calculation of interest on completed months and incomplete months based on the number of days.