Flexi FD ICICI – ICICI Bank Flexi Fixed Deposit: Features and Interest Rates 2024
Flexi FD ICICI
ICICI Bank’s Flexi Fixed Deposit (FD) offers a unique combination of the liquidity of a Current Account with the higher earnings of a Fixed Deposit. This product is designed to cater to the needs of ICICI Bank’s Current Account holders by linking their fixed deposits with their current accounts. This essay explores the various features, benefits, and interest rates of the ICICI Bank Flexi Fixed Deposit as of 2024.
Fixed deposits have long been a preferred investment choice for many due to their safety and assured returns. However, the lack of liquidity has often been a drawback for those needing immediate access to their funds. ICICI Bank addresses this issue with its Flexi Fixed Deposit scheme, which combines the benefits of both a Fixed Deposit and a Current Account. This product is exclusively available to ICICI Bank Current Account holders and offers a flexible and efficient way to manage funds.
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Features of ICICI Flexi Fixed Deposit
The ICICI Flexi Fixed Deposit scheme comes with a host of features that make it a convenient and attractive option for Current Account holders. Below are the key features of this product:
1. Minimum Balance Requirement
To generate a linked FD request, the minimum balance required in the Current Account should be ₹1,05,000. This ensures that only those with a substantial balance in their Current Account can benefit from the Flexi FD feature.
2. Common Customer ID
The Customer ID for both the Current Account and the linked FD will remain the same. This simplifies account management and ensures a seamless integration of the Current Account and Fixed Deposit.
3. Auto Renewal Mode
Fixed deposits under this scheme are opened in auto-renewal mode. This means that upon maturity, the deposit will automatically renew for the same tenure, ensuring continuous earnings without the need for manual intervention.
4. Original Tenure Renewal
The deposit will be renewed for the original tenure only. This feature provides clarity and consistency in the renewal process, ensuring that the depositor is aware of the exact terms of the renewed deposit.
5. Automatic Reverse Sweep Facility
One of the standout features of the ICICI Flexi Fixed Deposit is the automatic reverse sweep facility. If the balance in the Current Account falls below ₹1 lakh for individual customers, the linked Fixed Deposits will be automatically broken to maintain the minimum balance. This ensures that funds are always available for urgent needs without having to manually break the fixed deposit.
Also Read…. SBI FD – Earn ₹38,042 Interest on an Investment of ₹1 Lakh
6. Last-In, First-Out (LIFO) Basis
For the reverse sweep, Fixed Deposits will be broken on a Last-In, First-Out (LIFO) basis. This means that the most recently created deposit will be the first to be broken. This feature helps in minimizing the loss of interest since the latest deposit will have accrued less interest compared to older deposits.
7. Applicable Interest Rates
The interest rate on such Fixed Deposits will be the rate applicable for the respective period, as on the date of the auto renewal. This ensures that the depositor always earns interest at the prevailing rates, which can be beneficial in a rising interest rate scenario.
Benefits of ICICI Flexi Fixed Deposit
The ICICI Flexi Fixed Deposit offers several benefits to account holders, making it an attractive option for managing funds efficiently.
1. Liquidity and Returns
One of the primary benefits of the Flexi FD is the combination of liquidity and higher returns. While traditional Fixed Deposits offer high returns, they lack liquidity. On the other hand, Current Accounts offer liquidity but do not provide interest. The Flexi FD bridges this gap by providing the liquidity of a Current Account with the returns of a Fixed Deposit.
2. Ease of Management
The automatic reverse sweep and auto-renewal features make managing the Flexi FD hassle-free. Depositors do not need to worry about maintaining the minimum balance or renewing their deposits manually. This ease of management is particularly beneficial for busy professionals and business owners.
3. Financial Discipline
The requirement to maintain a minimum balance of ₹1,05,000 instills a sense of financial discipline. Account holders are encouraged to maintain a healthy balance in their Current Account, which can be beneficial in managing their overall finances.
4. Safety and Security
As with all Fixed Deposits, the Flexi FD is a safe and secure investment option. Deposits with ICICI Bank are covered under the Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance scheme, which provides insurance cover up to ₹5 lakh per depositor per bank.
5. Customized Solutions
The Flexi FD offers customized solutions to meet the specific needs of account holders. Whether it is the automatic renewal for the original tenure or the reverse sweep on a LIFO basis, the product is designed to cater to the diverse requirements of customers.
ICICI Bank Fixed Deposit Rates 2024
As of 15th July 2024, ICICI Bank offers competitive interest rates on its Fixed Deposits. The interest rates vary based on the tenure of the deposit and the amount deposited. Here is a detailed breakdown of the interest rates:
| Tenure | Interest Rates (p.a.) | |
| Regular Individuals | Senior Citizens | |
| 7 days to 29 days | 3.00% | 3.50% |
| 30 days to 45 days | 3.50% | 4.00% |
| 46 days to 60 days | 4.25% | 4.75% |
| 61 days to 90 days | 4.50% | 5.00% |
| 91 days to 184 days | 4.75% | 5.25% |
| 185 days to 270 days | 5.75% | 6.25% |
| 271 days to less than 1 year | 6.00% | 6.50% |
| 1 year to less than 15 months | 6.70% | 7.20% |
| 15 months to less than 18 months | 7.20% | 7.75%* |
| 18 months to 2 years | 7.20% | 7.70% |
| 2 years 1 day to 5 years | 7.00% | 7.50% |
| 5 years 1 day to 10 years | 6.90% | 7.40% |
Interest Rate Variations
The interest rates for Fixed Deposits can vary based on several factors, including the amount deposited and the tenure. Higher deposits and longer tenures typically attract higher interest rates. It is essential for depositors to choose the tenure and amount that best suits their financial goals and liquidity needs.
How to Open an ICICI Flexi Fixed Deposit
Opening an Flexi FD ICICI is a straightforward process. Here are the steps to open a Flexi FD:
1. Current Account Requirement
Since the Flexi FD is linked to the Current Account, the first step is to ensure that you have an active ICICI Bank Current Account. If you do not have one, you need to open a Current Account with ICICI Bank.
2. Minimum Balance
Ensure that your Current Account has a minimum balance of ₹1,05,000 to generate a linked FD request.
3. Application Process
You can apply for a Flexi FD through ICICI Bank’s online banking platform or by visiting the nearest ICICI Bank branch. The online application process is quick and convenient.
4. Auto Renewal Setup
When setting up the Flexi FD, you need to ensure that the auto-renewal option is selected. This ensures that your Fixed Deposit will automatically renew upon maturity.
5. Linking to Current Account
The Fixed Deposit will be linked to your Current Account, and the Customer ID for both accounts will be the same.
6. Confirmation
Once the Flexi FD ICICI is set up, you will receive a confirmation from ICICI Bank with the details of your Fixed Deposit, including the tenure, interest rate, and maturity date.
Conclusion
Flexi FD ICICI is a versatile and innovative financial product that combines the benefits of a Current Account and a Fixed Deposit. With features like automatic reverse sweep, auto-renewal, and competitive interest rates, it offers a convenient and efficient way to manage funds. By maintaining the required minimum balance and leveraging the flexibility of the Flexi FD ICICI account holders can enjoy the liquidity of a Current Account while earning higher returns on their deposits.
Disclaimer : The information provided in this essay is referenced from various sources and is subject to change. It is recommended to visit the official ICICI Bank website or contact ICICI Bank directly to confirm all details and obtain the most up-to-date information regarding the ICICI Flexi Fixed Deposit scheme. This document does not constitute financial advice and should be used for informational purposes only.
