Fixed deposits are one of the traditional means to invest your money in a bank or a non-banking financial company. Under a fixed deposit scheme, you invest a certain amount of money in your bank. The invested amount, called principle, stays invested with the bank for a prefixed tenure and fetches interest at a prefixed rate. At the end of the tenure, the amount is refunded to you along with the accumulated interest. At the time of investment, the bank issues a fixed deposit receipt that mentions the following very clearly:
- Amount invested
- Number of years or months for which the amount is invested
- Amount payable on maturity
- Date of maturity of the fixed deposit
Fixed deposits are considered to be one of the safest investment options. The returns on fixed deposits do not depend on market fluctuations, and the returns on investment are guaranteed.
Key Features of a Fixed Deposit
- Returns on your investment are guaranteed
- No risk of losing the principal amount
- You may opt for periodic withdrawal of interest to manage monthly expenses
- FD interest rates are higher for senior citizens
How the Tenure of Fixed Deposit Affects the Rates of Interest?
Tenure is one of the key factors that determine the rate of interest on a fixed deposit.
Usually, the best returns are given on long-term fixed deposits, which may have a tenure of 3 to 5 years. It is applicable across all banks and non-banking finance companies, as financial institutions like to hold on to principal amounts for a longer period of time.
As an investor, if you are looking for an investment option that is immune to market fluctuations, a long term fixed deposit is ideal for you as the returns at the end of the tenure are guaranteed.
How to Invest in a Fixed Deposit?
Through internet banking, you can invest in fixed deposits sitting in the comfort of your home. The money will get debited from your savings account and invested in a fixed deposit for the tenure you choose. An online fixed deposit receipt will be generated with all the relevant information mentioned for your records.
All the financial institutions and investment advisors have online fixed deposit interest calculators embedded on their official websites. Before investing in a fixed deposit, it is advisable to check the available options by using the online calculator to ascertain the terms best suited to you.
Like all the banks, ICICI Bank interest rates on fixed deposits differ depending on various factors. The bank has dedicated fixed deposit schemes for domestic customers as well as NRIs and NROs. ICICI Bank also offers schemes for high net worth clients for investments of more than INR 5 crores.
The table below shows interest on fixed deposits as offered by ICICI Bank Limited:
| Tenure | Ordinary Customer | Senior Citizens |
| 4 days to 29 days | 2.50% | 3.00% |
| 30 days to 90 days | 3.00% | 3.50% |
| 61 days to 184 days | 3.50% | 4.00% |
| 185 days to 289 days | 4.40% | 4.90% |
| 290 days to < 1 year | 4.50% | 5.00% |
| 1 year to 2 years | 5.10% | 5.60% |
| 2 years 1 day to 3 years | 5.40% | 5.90% |
| 3 years1 day to 5 years | 5.60% | 6.10% |
| 5 years 1 day to 10 years | 5.75% | 6.50% |
| 5 years (Sec 80C, max. Rs. 1.50 lakhs) | 5.60% | 6.10% |
The table may give you an idea on the returns that you can expect on your investment with ICICI Bank. Please note that the above table is for investments of up to INR 2 crores under a single fixed deposit. You should visit ICICI bank’s official website for more details.