Good news for ICICI Bank customers: interest rates on long-term FDs have been increased..

If you are considering opening a fixed deposit (FD), there is good news for you from ICICI Bank. The bank has revised the interest rates on select fixed deposits of less than ₹3 crore. For certain long-term FDs, the interest rate has been increased by 10 basis points. Following this change, senior citizens can earn up to 7.20% interest on eligible FDs, while general customers can earn up to 6.60%. The exact interest rate will depend on the tenure of the FD.

ICICI Bank FD Rates
ICICI Bank has increased the interest rates on certain long-term FDs for general customers. For FDs with a tenure ranging from 2 years and 1 day to 3 years, the interest rate has risen from 6.45% to 6.55%. For FDs ranging from 3 years and 1 day to 5 years, the rate has increased from 6.50% to 6.60%. Similarly, for FDs with a tenure of 5 years and 1 day up to 10 years, the interest rate has been raised from 6.50% to 6.60%. The interest rate on 5-year tax-saving FDs has also increased from 6.50% to 6.60%.

Regarding short-term FDs, the bank is offering 2.75% interest on FDs with a tenure of 7 to 45 days, 4% on FDs of 46 to 90 days, and 4.50% on FDs of 91 to 184 days. For FDs with a tenure ranging from 185 days to less than 1 year, the interest rate is 5.50%. For FDs with a tenure of 1 year to less than 18 months, the interest rate is 6.25%, while for FDs ranging from 18 months to 2 years, the interest rate is 6.30%.

New ICICI Bank FD Rates for Senior Citizens

Following these changes, senior citizens can earn up to 7.20% interest on eligible FDs. For senior citizens, the interest rate on fixed deposits (FDs) with a tenure of 2 years and 1 day to 3 years has increased from 6.95% to 7.05%. For FDs ranging from 3 years and 1 day to 5 years, the rate has risen from 7.10% to 7.20%. For FDs with a tenure of 5 years and 1 day to 10 years, the interest rate has gone up from 7% to 7.10%. Additionally, for 5-year tax-saver FDs, senior citizens will now receive 7.20% interest instead of 7.10%.

For shorter tenures, senior citizens are receiving 3.25% interest on FDs of 7 to 45 days, 4.50% on FDs of 46 to 90 days, and 5% on FDs of 91 to 184 days. For FDs with a tenure of 185 days to less than 1 year, the interest rate is 6%. For FDs ranging from 1 year to less than 18 months, the rate is 6.75%, and for FDs of 18 months to 2 years, it is 6.80%.

How much would a general customer receive on an FD of ₹5 lakh—previously versus now?

While 10 basis points may seem small, its impact becomes clearly visible with larger amounts and longer tenures. This calculation assumes quarterly compounding and is presented on a pre-tax basis.

For instance, if you open an FD of ₹5 lakh for a period of 3 years: at the old rate of 6.45%, you would have received ₹6,05,809 after 3 years—that is, an interest of ₹1,05,809. At the new rate of 6.55%, you will now receive ₹6,07,600—an interest of ₹1,07,600. A mere 10-basis-point increase results in an additional gain of ₹1,791. If the same ₹5 lakh is invested for 5 years, at the old rate of 6.50%, the amount would grow to ₹6,90,210—translating to an interest of ₹1,90,210. At the new rate of 6.60%, it would reach ₹6,93,614, resulting in an interest of ₹1,93,614. This represents a gain of ₹3,404. The rate for a 5-year tax-saver FD has also increased from 6.50% to 6.60%; therefore, the same calculation applies to a ₹5 lakh investment in that category as well.

The most significant difference is seen in a 10-year FD. At the old rate of 6.50%, a ₹5 lakh FD would grow to ₹9,52,779 over 10 years, yielding ₹4,52,779 in interest. At the new rate of 6.60%, this amount would increase to ₹9,62,200, resulting in an interest of ₹4,62,200. In other words, you will now receive ₹9,421 more.

Calculations for Senior Citizens (on a ₹5 lakh FD)

Senior citizens receive higher interest rates, which leads to a slightly greater benefit for them. These calculations are based on quarterly compounding and are presented on a pre-tax basis.

For a 3-year FD of ₹5 lakh, a senior citizen would have received ₹6,14,813 at the old rate of 6.95%—an interest of ₹1,14,813. At the new rate of 7.05%, they will now receive ₹6,16,628, which amounts to an interest of ₹1,16,628—a gain of ₹1,815.

For a 5-year FD, at the old rate of 7.10%, the amount would grow to ₹7,10,873, which includes ₹2,10,873 in interest. At the new rate of 7.20%, this amount will grow to ₹7,14,374, with an interest component of ₹2,14,374—an increase of ₹3,501. The interest rate for 5-year tax-saver FDs has also been increased from 7.10% to 7.20%, offering a similar benefit.

The scenario for senior citizens investing in a 10-year FD is particularly noteworthy. At the previous rate of 7%, an investment of ₹5 lakh would have grown to ₹10,00,799 over 10 years—more than doubling the initial amount. At the new rate of 7.10%, this sum will reach ₹10,10,682, yielding ₹5,10,682 in interest—an increase of ₹9,883 compared to the previous rate.

Points to consider before opening an FD

Before opening an FD, compare the interest rates offered for different tenures. Verify whether the quoted rate applies to a standard FD or a specific, tenure-based scheme. Additionally, ensure you understand the penalties for premature withdrawal, the available interest payout options, and the applicable tax rules.

FD interest rates vary based on the tenure and the category of the customer. Therefore, before making an investment, be sure to check the latest rates and terms and conditions on the bank's official website.

Disclaimer: This content has been sourced and edited from Money Control. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.