ICICI Money Multiplier Plan

ICICI Money Multiplier Plan	Details
Type	Resident Savings Account with Auto Sweep Facility to Fixed Deposit
Transfer to FD	In multiples of Rs. 5,000 at each instance
Interest Rate	As per that applicable on the FD

ICICI Money Multiplier Plan gives you maximum liquidity with the benefit of Fixed Deposits (FDs). You can earn higher interest on the linked FD/s. If you have an Indian Savings Bank (SB) Account at the ICICI Bank, then you can request this facility. You can link more than one FD to the account. You can send a request for the same through branch visit, infinity, internet banking, phone banking, etc. Transfers to the FD happens in the multiples of Rs. 5,000 each.

Both ‘Auto Sweep In’ and ‘Auto Sweep Out’ options are available. You can transfer the surplus balance to the stipulated amount in your SB account to the FD, and earn a higher interest on the investment. Similarly, if the savings account falls short of the minimum quarterly balance mandated, then the FD is broken to replenish the shortfall amount.

In this post, we will discuss ICICI Bank Money Multiplier Plan features, auto-renewal, premature withdrawal, eligibility criteria, interest rates, and FAQs.

Features of ICICI Money Multiplier Plan

Get the chance to multiply your money at the maximum possible rate of interest for 390 days. Here are the features you must know:

Maximize on Returns: Use your idle lying money to secure high returns. Create a linked Fixed Deposit to your savings account. Issue instruction through phone banking, internet banking, or visit the bank branch to provide instructions for FD creation from surplus funds in your SB account (subject to at least Rs. 10,000). The FD should be in the multiples of Rs. 5,000 for 1 year at least or more according to your instruction.
Easy Liquidity: Funds are withdrawable from savings account through internet banking, bank ATM, cheque issuance, and other channels. All linked FDs will get the facility of automatic reverse sweep in Rs. 5,000 multiples based on Last-in-First-out when the balance in SB account goes below Rs. 10,000.
Interest on Reverse Sweep: The interest earned on reverse sweep will be as per the applicable rate for the tenure the FD is held with the bank, minus the premature withdrawal penalty, if any. The leftover sum will earn higher interest according to the rate originally applicable on the FD.

Auto-Renewal and Premature Withdrawal

Under the ICICI Bank Money Multiplier Plan, if the deposit falls due, then the bank will renew the accrued interest and principal automatically for the tenure same as that of the original deposit. Here are the penalties on premature withdrawal of the FD:

Calculation of interest is according to the rate applicable for the tenure to which the deposit was held in the bank.
Or the calculation is as per the contracted rate on the FD, whichever is lower.

Tenure of Original Fixed Deposit	Penalty on Premature Withdrawal
Less Than a Year	0.50%
1 Year and More, But Less Than 5 Years	1.00%
5 years and more	1.00% for less than Rs. 5 crores 1.50% for Rs. 5 crores and more

ICICI Money Multiplier Plan Eligibility Criteria

Here are the norms for eligibility:

You must have a resident savings account with the bank.
You should maintain Rs. 10,000 as minimum average balance.
The MAB requirement is Rs. 30,000 as the same if you have a Special Resident Savings Account.

ICICI Money Multiplier Interest Rates

Here is more information on ICICI Bank savings accounts interest rates:

The interest on the SB account is calculated daily. The calculation is based on the daily closing balance in the account.
The rate applicable is based on the bank’s and RBI’s discretion.
The interest rate for ICICI Bank Savings Account for end of the day balance less than Rs. 50 lakhs is 3%.
The rate of interest for an end-of-the-day balance over Rs. 50 lakhs are 3.50%.
The amount of interest calculated is rounded off to the nearest rupee.
The FD falling due, with the accumulated interest against such FDs, will be renewed on the maturity date from time to time.
This is according to the auto-renewal scheme for 1-year tenure or any other tenure instructed by you, whichever is higher.
The payable interest on such Fixed Deposits is as per that applicable on the bank FD for the respective tenure, prevailing as on the renewal date.
The interest calculation will also be subject to TDS (Tax Deduction at Source) if any.

Frequently Asked Questions about ICICI Money Multiplier Plan

Here are the FAQs:

1. What if there is a change in your residential address?

If your residential status or address changes, then you have to inform the bank in writing about the same.

2. How to de-link the FD made from the SB account?

You can request to de-link the deposit made from the SB account through the feature of Money Multiplier. To do this, you have to use the Infinity platform and send a request to the bank. You may visit the bank’s branch for the same, or use phone banking.

3. What are the rules for transactions?

All the transactions for the savings account available for the resident can be carried out from the linked FD. The rules to the same are according to those that govern such SB accounts for residents.

4. Will the FD linked under Money Multiplier remain under lien to the bank?

The Fixed Deposit under the said scheme is under unconditional lien to the ICICI Bank. The institution has the right to settle dues against the FD to pay any dues. It can prematurely close the deposit by applying the default interest rate. The bank will do so if it has to pay a cheque drawn on the savings account linked to the FD.

5. Can you take a loan against this facility?

There is no option to take a loan or overdraft on the security of FD under the feature of ICICI Bank Money Multiplier.

6. Which FDs can the bank link to an SB account under the said plan?

The bank has the authority to link all FDs, except the tax-saver Fixed Deposit. But the tenure of the deposit should be at least a year or above. It must be made to an operative resident Savings Account under the Money Multiplier Plan. If you want to link any other deposit, along with the FD opened by other means, then you have to provide separate instructions for the same to the institution.

7. What are a few important terms and conditions?

Here are a few pointers to consider:

The default tenure for linked FD opened under the feature of Money Multiplier is a year. Or, it is any tenure stipulated by you, whichever is higher.
Relevant charges will apply to the non-maintenance of the minimum balance in the savings account linked to the plan.
The interest rate will be as per that revised by the bank based on the RBI guidelines.

8. What are the rules for those with a subscription to Quantum Optima with Auto Sweep facility?

Those with auto sweep and quantum optima facility for their resident savings account as of June 30, 2005, can avail of the auto sweep for the Money Multiplier scheme as per those mentioned in the ‘Features’ section of this post.