Icici Bank Interest Rate for Senior Citizens
ICICI Bank is one of the leading private sector banks in India that offers a variety of banking products and services. One of the popular products offered by the bank is the Recurring Deposit (RD) scheme for Senior Citizens.
ICICI Bank Senior Citizen RD Interest Rates 2024
ICICI Bank offers attractive interest rates on the Recurring Deposit scheme. The interest rates are calculated on a quarterly basis and are compounded annually. The interest rates vary based on the tenure of the deposit and the amount of the deposit. As of June 2024, the interest rates for the Recurring Deposit scheme range from 5.25% to 7.50%.
Features of the ICICI Bank Senior Citizen RD
| Canara Bank Senior Citizen RD | Features |
|---|---|
| Eligibility | Applicant must be of 60 years of age or above |
| Amount of RD | Minimum Rs.500 per month and in multiples of Rs.100 thereof |
| Tenure | Minimum 6 months and Maximum 10 years (multiples of 3 months) |
| Nomination Facility | Available |
| TDS | Applicable as per prevailing Income Tax rules |
| Penalty for Delayed Payment | Up to Rs.12 per Rs.1000 installment per month |
| RD Tenure | Interest Rate |
|---|---|
| 6 months | 5.25% |
| 9 months | 6.50% |
| 12 months | 7.20% |
| 15 months | 7.75% |
| 18 months | 7.70% |
| 21 months | 7.70% |
| 24 months | 7.70% |
| 27 months | 7.50% |
| 30 months | 7.50% |
| 33 months | 7.50% |
| 36 months | 7.50% |
| Above 3 years upto 5 years | 7.50% |
| Above 5 years upto 10 years | 7.40% |
ICICI Bank Senior Citizen RD Account Minimum Amount for RD
Open a recurring deposit with a minimum of Rs.500 per month and thereafter, deposit in multiples of Rs.100.
| ICICI Bank Senior Citizen RD | Amount |
|---|---|
| Minimum monthly instalment | Rs.500 |
| Additional monthly instalment | Rs.100 thereof |
| Maximum monthly instalment | Rs.10,00,000 |
ICICI Bank Senior Citizen RD Account Tenure
Recurring Deposits will be available for a minimum tenure of 6 months (and in multiples of 3 months thereafter) up to a maximum tenure of 10 years.
ICICI Bank Senior Citizen RD Account Types
Choose from the different recurring deposit facilities we offer according to your requirements, so you can save up in a way that's convenient for you. Here are the types of RDs you can open with us.
(1) Delightful Deposits, Pay less buy more: The scheme is designed for customers who want to save a fixed amount of money every month and earn a higher interest rate on their savings. This scheme is an ideal option for those who want to save money for a specific goal such as a child's education, marriage, or buying a house. Under this feature, customers can save a fixed amount of money every month and use the accumulated amount to purchase products from the ICICI bank's partner stores at a discounted price.
(2) Iwish Goal Based Savings: iWish is a type of special Recurring Deposit scheme of ICICI Bank to allow the user to contribute any amount at any time, as per their convenience. It allows to create several goals based on your needs for any tenure between 6 months to 5 years.
It offers you a facility to track the progress through the iMobile pay app or through ICICI Bank Internet Banking. Any customer who uses ICICI Bank's Net Banking facility can open this account.
- Minimum deposit amount is Rs 50 only
- No penalty for missing the next deposit
- Next deposit can be made any time
- Deposits can be made multiple times in a month
How to Open a Recurring Deposit Account with ICICI Bank for Senior Citizens?
You can choose any of the following ways to open a Recurring Deposit with ICICI Bank:
Option 1: How to Open ICICI Bank Recurring Deposit Account using Branch Visit?
By visiting the nearest ICICI Bank branch and any of the representatives will guide you through the RD account opening process.
Option 2: How to Open ICICI Bank Recurring Deposit Account using Internet Banking?
- Log into www.icicibank.com using your internet banking credentials i.e. your user ID and password.
- Go to the 'My Accounts' section.
- Select the 'Open Fixed/Recurring Deposit' option.
- Click on 'Open Recurring Deposit' option
Option 3: How to Open ICICI Bank Recurring Deposit Account using Mobile App iMobile?
- Log into iMobile using your 4-digit login PIN
- Go to 'Accounts & Deposits' section
- Select 'Deposits (FD/RD)' option
- Click on 'Open Recurring Deposit' option
Option 4: How to Open ICICI Bank Recurring Deposit Account using Customer Care?
- Select the language you prefer.
- Press '1' if you're an existing customer.
- Press '1' for banking accounts.
- Enter the number and the PIN of your debit card to speak to ICICI Bank customer care executive.
ICICI Bank Senior Citizen RD Account Other Features
ICICI Bank recurring deposits also have other features you can benefit from. Here are the details.
- The facility to avail a loan against your deposit
- Assign a single nominee to your RD account
- Senior Citizens RD interest rates are only applicable for domestic deposits.
- Interest income at attractive rates equal to the rates of interest on ICICI Bank FD
- Tax Deduction at Source (TDS) is applicable on interest paid/accrued on recurring deposits in line with applicable law.
ICICI Bank Senior Citizens RD Calculator
You can use ICICI Bank Senior Citizens RD calculator to help you estimate your returns. Here's how you can use it:
- Monthly Investment Amount: Decide how much you want to invest every month.
- Tenure: Choose the duration for which you plan to invest in the RD.
- Interest Rate: ICICI Bank currently offers an interest rate as mentioned in the above table based on its tenure.
Using the ICICI Bank RD Calculator, you can calculate:
- The total amount deposited by you at the end of the tenure.
- The maturity value (total corpus) at the end of the tenure.
- The aggregate interest amount which you will earn over the investment period.
Penalty on Delayed RD Installment of ICICI Bank Senior Citizens RD
Timely payments on your RD are important in order to avoid penalties. The monthly penalty for delayed installments can add up and will be deducted from the interest you earn at maturity. When you delay a payment on your Recurring Deposit (RD), a penalty is applied to your account.
- Interest Rate on Delayed Payments: A penalty is levied if you miss an RD installment. The penalty is calculated at a rate of Rs.12 for every Rs.1,000 for all delayed installments. This penalty is applied monthly.
- Monthly Calculation: For the purpose of calculating the penalty, any part of a month is considered a full month. This means that even if your payment is delayed by just a few days into the next month you will be charged for the entire month.
- Recovery of Penalty: The total interest so chargeable will be recovered from the total amount of interest payable at the time of maturity. This means that the interest you earn on your RD will be reduced by the penalty charges.
Rules & Regulations for Recurring Deposit
- Depositor Needs to fulfil KYC norms as per RBI directive.
- Senior Citizen interest rates are applicable only for domestic deposits.
- The depositor has to deposit the monthly installments regularly till the maturity of RD account.
- In case the depositors failed to deposit Installment regularly, penalty will be levied.
- The maturity proceeds of the RD account is usually paid with in 30 days from the date of last instalment deposited.
- It is very important to submit your maturity instructions which should be clear. If you want the RD amount to be credited to your savings account or to be used in opening of a fixed deposit, you need to inform the bank in advance.
- Standing instruction will be accepted for transfer of monthly installments from other accounts maintained by the account holder.
- Penalty will be applicable, if the amount is withdrawal before maturity.
Factors to Consider Before Applying for Recurring Deposit
- Tenure of recurring deposit account
- Interest rate offered by the bank
- Conditions for premature withdrawal
Documents Required for Icici Bank RD for Senior Citizens
- Identity Proof (any one): Passport, Driving License, Voter ID Card, Government Approved College/university I.Card, Government/Semi government/Department I.Card Aadhar Card
- Address Proof(any one): Electricity Bill (not more than 2 months old), BSNL Landline Telephone Bill (not more than 2 months old), Municipal Tax Bill, Voter ID card, Aadhaar card, or passport, other proof acceptable by Bank.
- Passport Size Photograph: 2 Copies
- Pan Card or / Form 60 or 61 (if customer does not have PAN Card)
- Form 15H to avoid TDS
- Age Proof Certificate: which can be a birth certificate or any government-issued document that states the applicant's age.
Rules for Renewal of Recurring Deposit
Renewal of RD is a simple process. Renewal of the RD is one of the most common options available to the depositors after the maturity of an RD. Senior citizens should be aware of the rules for the renewal of RDs before investing in them. They should check the tenure, renewal options, terms and conditions, premature renewal, etc. to make an informed decision. A well-researched investment can provide financial security and peace of mind to senior citizens.
- Depositors can choose to renew their RD for the same duration or for a different duration.
- Depositors have the facility to renew their RD either online or by visiting their bank branch.
- No additional documentation is required for renewal if the RD is automatically renewed or if you are renewing it through the bank's online platform. However, minimal documentation may be needed if you are doing manual renewal at the branch.
- Some banks have the option of auto-renewal of RD. Auto-renewal of RD means that the renewal of the RD will happen automatically on the date of maturity for the same duration as the original RD. The interest rate applicable will be the prevailing rate at the time of renewal.
- The interest rate for the renewed RD will be based on the rates prevailing at the time of renewal. It is important to know that the current rates may differ from the rates of your original RD.
- If you need funds, some banks allow partial withdrawal of the RD amount before renewal.
- The interest earned on the renewed RD will be subject to tax and you need to consider the same for the accounting purpose.
Safety of Recurring Deposit Funds
The Deposit Insurance and Credit Guarantee Corporation, a subsidiary of the central bank, guarantees investments in recurring deposits of up to Rs 5 lakh for all the member banks.
Tax Benefit under Icici Bank RD for Senior Citizens
It is important to note that senior citizens can claim a tax deduction of up to Rs. 1.50 lakh under Section 80C of the Income Tax Act, 1961, on the amount invested in RD schemes for senior citizens, if the RD tenure is atleast 5 years. This tax benefit makes these schemes more attractive to senior citizens who are looking for safe investment options that offer tax benefits.
TDS Under Icici Bank RD for Senior Citizens
Senior citizens need to understand the tax implications of investing in RDs before making any investment in RD. Tax Deducted at Source (TDS) is a tax that is deducted from the interest earned on an RD. In this article, we will discuss the TDS rate on Recurring Deposit for senior citizens.
The TDS rate on Recurring Deposit for senior citizens is 10% of the interest earned, provided that the interest income is more than Rs. 50,000 per annum.
This limit was increased from Rs. 10,000 to Rs. 50,000 in the 2018 Union Budget, providing relief to small depositors. It is important to note that this limit is applicable to the total interest earned by the senior citizen in a financial year, including interest from savings accounts, fixed deposits, and recurring deposits.
Senior citizens can avoid TDS by submitting Form 15H to the bank. This form is a declaration stating that the senior citizen's total income for the financial year is below the taxable limit, and hence no TDS should be deducted. It is important to note that Form 15H needs to be submitted to each bank where the senior citizen holds an RD account.
If TDS is deducted from the senior citizen's RD account, they can claim a refund by filing their income tax return. The TDS amount will be considered as advance tax paid by the senior citizen and will be adjusted against their final tax liability. If the TDS amount is more than the final tax liability, the senior citizen can claim a refund of the excess amount.
Role of Senior Citizens RD in Financial Planning
No Risk of Loss
RDs does not have any risk of principal loss unlike stocks or mutual funds. The invested amount is safe and the returns are assured. This feature is particularly important for retirees who cannot afford to lose their savings.
Creation of Big Corpus
The maturity amount from RDs can be used as a supplementary income after retirement. It can be used to meet regular expenses, medical bills or any other financial needs.
Tax Benefits
Investments in RDs for the tenures 5 years and above also come with certain tax benefits under Section 80C of the Income Tax Act for providing additional financial relief for retirees.
Supplementary Income
If you invest the funds accumulated under RD account in any systematic withdrawal plan or monthly income plan, then you can use it as an additional monthly income in addition to any pension income which you receive.
Flexible Tenure
RDs offer flexibility in selecting tenure which allows senior citizens to choose a period according to their financial goals. Whether it's short-term goals or long-term targets, the investors can select an RD tenure that suits their needs so that the funds can be available when required.