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Recurring Deposits are a wonderful way to save money for an emergency. ICICI’s Recurring Deposit is one of the most preferred RD options available in the market. With this, you can now save money as well as earn interest on your payments. Get more details on ICICI’s Recurring Deposit, and how to save money with this option below!

ICICI RD Interest Rates for Different Investment Periods

Investment period RD rates for regular deposit RD rates for Senior Citizens
6 months 6 6.5
9 months 6.25 6.75
12 months 6.75 7.25
15 months 6.75 7.25
18 months 6.75 7.25
21 months 6.75 7.25
24 months 6.75 7.25
27 months 6.5 7
30 months 6.5 7
33 months 6.5 7
36 months 6.5 7
Above 3 years up to 5 years 6.5 7
Above 5 years up to 10 years 6.5 7

ICICI Recurring Deposit Interest Rates

  • ICICI Bank offers RD interest rates up to 7.10%
  • Interest on RD with ICICI Bank is compounded quarterly
  • ICICI Bank accepts minimum deposits starting at Rs. 500
  • For senior citizens, ICICI Bank offers RD rate up to 7.60%

ICICI Bank Recurring Deposit

ICICI Recurring Deposit: Special Features

  • Loan facility is available against your RD account
  • Higher rate of interest than fixed deposits
  • The deposit tenure ranges from 6 months to 120 months
  • Visit any ICICI Bank branch to avail this service
  • TDS deductions are subject to the existing income tax rules as at the time of opening the RD account
  • Penalty on non-payment of the periodic deposit is charged at Rs. 12 per Rs. 1,000

ICICI Recurring Deposit: Is this the best way to save money?

A Recurring Deposit is one way of creating an emergency fund for the future. But before you do, make sure to take a look at the other saving options available to you. One of the other ways to make money from regular investments is to opt for a Mutual Fund SIP (Systematic Investment Plan). You will invest regularly just like in an RD, but due to the high rates of interest, you will earn more from a SIP than you would from a regular RD.

Mutual Fund SIPs: The Benefits

  • The minimum deposit amount for a Mutual Fund SIP is as low as RS. 500. This payment can be made on a monthly or quarterly basis as per your convenience
  • Mutual Funds invest in debt or equity funds. Equity Linked Mutual Funds (ELSS) have performed very well in the market for the last ten years, and investors have earned high dividends with an average return rate of 12-22%. This is much higher than the average RD interest rates
  • A SIP account has higher liquidity when compared to RD accounts. This is because you are not charged a withdrawal penalty when you withdraw money from your SIP account as compared to RD
  • The interest gains from RD accounts is taxable, while gains from equity Mutual Fund SIPs (ELSS) are exempt from tax

ICICI RD Eligibility Criteria

  • Investor must be an Indian resident or a HUF (Hindu Undivided Families)
  • If an NRI, investor can open an RD account through NRO and NRE accounts
  • If a minor, investor can open an RD account under parental guardianship who will supervisor of your finances

ICICI RD: Premature Withdrawal

ICICI Bank allows users to withdraw money from their RD account before maturity i.e. before the tenure finishes. However, partial withdrawal of the amount is not allowed.

Tax Benefits on ICICI RD

All Recurring Deposits, including ICICI Recurring Deposit, are taxable under the Income Tax Act 1961. The money that is invested in the RD account becomes part of your yearly income for the given fiscal year and TDS (Tax Deducted at Source) at 10% is deducted on the interest earned (only if interest amount exceeds Rs. 10,000 for the financial year). You can save TDS on your RD gains by filling either Form 15G or Form 15H.

Conditions for submitting Form 15G:

  • You must be an individual or HUF
  • You must be a Resident Indian
  • You should be less than 60 years old
  • Tax calculated on your Total Income is nil
  • The total interest income for the year is less than the minimum exemption limit for that year, which is Rs 2,50,000 for the financial year 2016-17

Conditions for submitting Form 15H:

  • You are an individual
  • You must be a Resident Indian
  • You are 60 years old or will be 60 years old during the year for which you are submitting the form
  • Tax calculated on your Total Income is nil

Documents Required to Open ICICI RD Account

1. Proof of Identity

  • Passport
  • PAN card
  • Voter ID card
  • Driving licence
  • Government ID card
  • Photo ration card
  • Senior citizen ID card

2. Address proof

  • Passport
  • Telephone bill
  • Electricity bill
  • Bank Statement with Cheque
  • Certificate/ ID card issued by Post office

Types of Recurring Deposit offered by ICICI

ICICI Bank offers different types of Recurring Deposit schemes, like :

Regular RD: Save for the future by investing regular monthly amounts in this RD scheme by ICICI Bank. This account has a minimum tenure of 6 years, which can be increased to a maximum of 10 years. The minimum monthly investment amount starts at Rs. 500 per month.

NRE Recurring Deposit Scheme: NRIs can now save money for the long term by making regular investments from your NRE Savings Account. The investment amount can vary from Rs. 5,000 to Rs.100,000 and must be in multiples of Rs.1,000. This RD scheme offers high liquidity and the amount is totally repatriable.

Apart from this, ICICI Bank also offers recurring deposit schemes for holiday and travel from Thomas Cook and MakeMyTrip, for buying gold jewellery from Tanishq, and for purchasing electronic pieces of equipment from Croma store.

RD Interest Rates in India

The RD interest rate in India can vary from bank to ban and depends on the kind of RD scheme chosen, the tenure of deposit, and the monthly deposit amount. Generally, the interest rates are higher when the RD tenure is above 15 months. Also, some banks may offer high RD interest rates for senior citizens and women.

Similar Banks Offering RD

Similar Banks Offering RD
SBI Bank HDFC Bank Union Bank of India IDFC Bank
AXIS Bank KOTAK Bank Bank of India Canara Bank
Bank of Baroda IDBI Bank PNB Andhra Bank
Central Bank of India Allahabad Bank RBL Bank
Syndicate Bank Corporation Bank Indian bank

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