ICICI Bank introduces innovative Fixed Deposits and Term Deposits, announces FD Xtra

Last Updated: Wed, Feb 06, 2019 13:53 hrs
A pedestrian walks past a logo of ICICI Bank at its headquarters in Mumbai

Mumbai: ICICI Bank on Wednesday in a note explained that it has launched a set of new services within its FD and RD product range. These have been clubbed and categorized as 'FD Xtra'. These new services promise good benefits to account holders.

Under the FD Xtra product category, the bank is offering three services- FD Life, FD Invest, and FD Income.

Under ‘FD Life’, customers in the age group of 18-50 years will get a dual benefit of investment growth via the fixed deposit and security through a free term life insurance of one year. The bank said that this is the first of its kind combo in the industry, offering unique benefit of a free term life insurance from ICICI Prudential Life Insurance Company of Rs. 3 lakh on opening an FD of at least Rs. 3 lakh for a tenure of minimum two years. In addition to getting a competitive interest rate, the customer gets a complimentary insurance cover for one year. The customer has the option to renew it next year.

FD Invest, will help customers invest the interest earned on FDs in monthly Systematic Investment Plans (SIPs) of a mutual fund of their choice from ICICI Prudential Asset Management Company. Available with a FD of at least Rs 2 lakh for a minimum tenure of one year, ‘FD Invest’ safeguards principal amount. Simultaneously, it offers an opportunity to customers to invest in mutual fund through the interest generated by the FD.

Another variant in the FD Xtra range of deposits is ‘FD Income’. Available in the form of FDs and RDs, they offer customers the flexibility of receiving their maturity proceeds in the way that suits their goals. Customers can choose to receive the entire maturity amount as a monthly income for a tenure of their choice. Alternatively, they can choose to receive 30% of the amount as lump sum on maturity of the investment and the remaining 70% as a monthly income for a tenure of their choice. Maximum tenure for all term deposits, including investment phase and payout phase, is 10 years.

The bank in its note said that it would also offer customers the convenience of an instant platinum credit card against FD without any joining or annual fees. This enables new-to-credit customers to conveniently get a credit card.

Pranav Mishra the bank's Head for Retail Liabilities Group explained in the note that “Fixed and recurring deposits have long been a fundamental investment for most investors, irrespective of their risk profile. With the prevailing volatility in financial markets, we see a renewed interest by customers to invest in fixed and recurring deposits as they offer a combination of attractive interest rates, liquidity, safety of capital and assured returns."

Mishra added that the new product along with Finance Minister Piyush Goyal's proposal in the recent interim budget would attract more customers. Goyal in the recent interim budget had proposed to increase the TDS (Tax Deducted at Source) threshold from Rs 40,000 to Rs 50,000.

Summary of Benefits:

The bank said that the tenor and interest rates will remain similar with its existing FD and RD rates. However customers will get additional benefits with FD Xtra. Here is a summary of benefits:

FD Life:

  • A free term life insurance from ICICI Prudential Life Insurance Company of Rs. 3 lakh on opening an FD of at least Rs. 3 lakh for a tenure of minimum two years.
  • It offers customers, who are 18-50 years of age, the dual benefit of investment growth via FD and security through a free term life insurance of one year for the FD holder.
  • In addition to getting a competitive interest rate, the customer gets a complimentary insurance cover for one year. The customer has the option to renew it next year.

FD Invest:

  • This will help customers invest the interest earned on FDs in monthly Systematic Investment Plans (SIPs) of a mutual fund of their choice from ICICI Prudential Asset Management Company
  • Available with a FD of at least Rs 2 lakh for a minimum tenure of one year, FD Invest safeguards principal amount

FD Income:

  • Available in the form of FDs and RDs, they offer customers the flexibility of receiving their maturity proceeds in the way that suits their goals.
  • Customers can choose to receive the entire maturity amount as a monthly income for a tenure of their choice. Alternatively, they can choose to receive 30% of the amount as lump sum on maturity of the investment and the remaining 70% as a monthly income for a tenure of their choice.
  • Maximum tenure for all term deposits, including investment phase and payout phase, is 10 years.

Customers can visit their nearest ICICI Bank branch for more information and to apply for 'FD Xtra deposits. Additionally, they can apply for ‘FD Income’ through internet banking.