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.
Here are the features of ICICI Flexi FD:
Here are the ICICI Bank Flexi Fixed Deposit eligibility criteria:
Here are the reasons why you must invest in this product:
Here are the details:
Here is the ICICI Bank Flexi Fixed Deposit FAQs:
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.
The minimum deposit amount for general customers is Rs. 10,000. The same for a minor account is Rs. 2,000.
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.
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.
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.
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