Open ICICI RD Account Online – ICICI RD Interest Rates 2024

Incorporated in 1955, ICICI Bank is the largest private sector bank in India. Over the years, this financial institution has garnered immense popularity as a reliable provider of diverse financial and banking services. If you feel more comfortable with short-term investment plans that give you fixed returns, then the ICICI Recurring Deposit (RD) account can be a safe, secure, and promising option. This allows you to save money and earn interest on your invested amount. Here is a comprehensive guide to ICICI rd interest rates.

ICICI RD Interest Rates 2024

Check out the latest ICICI Bank rd interest rates applicable to all RDs amounting to less than ₹2 crores. 

Features of ICICI RD Interest Rates 2024

Here is a list of a few salient features that you can avail by choosing ICICI Bank recurring deposit interest rates in 2024. 

• ICICI bank accepts deposits starting from a minimum of ₹500, and thereafter in multiples of ₹100.
• The bank compounds the interest on RD accounts quarterly.
• The deposit tenure can range from a minimum of 6 months (and increase thereafter in multiples of 3 months) to a maximum of 120 months (10 years).
• You can avail a loan against the deposited amount in your RD account.
• TDS deductions are applicable as per the existing income tax rules at the time of opening the account.
• You can avail the RD service either by visiting any ICICI branch or through internet banking.

How to Open an RD Account in ICICI Bank Online?

To open an ICICI Bank recurring deposit account online, you can choose any of the following options:

Through ICICI Bank’s Internet Banking Portal

• Step 1: Use your internet banking user ID and password to log in to www.icicibank.com.
• Step 2: Go to the ‘My Accounts’ section and click on the ‘Open Fixed/Recurring Deposit’ option.
• Step 3: Click ‘Open Recurring Deposit’. 

Through ICICI Bank’s Mobile Application (iMobile)

• Step 1: Use your 4-digit PIN to log into iMobile. 
• Step 2: Click ‘Accounts & Deposits’ and then choose the ‘Deposits (FD/RD)’ option. 
• Step 3: Click on the ‘Open Recurring Deposit’ option. 

Through ICICI Bank’s Customer Care

• Step 1: Select your preferred language. 
• Step 2: Press ‘1’ if you are an existing customer. 
• Step 3: Press ‘1’ for banking accounts. 
• Step 4: Enter the number and the PIN of your debit card. 

An ICICI Bank customer care executive will contact you and guide you with the further steps. 

How to Open an RD Account in ICICI Bank Offline?

Here is a step-by-step guide you need to follow to open an RD account in ICICI Bank offline. 

• Step 1: Visit the ICICI Bank branch nearest to you. 
• Step 2: Collect the ICICI RD account opening form from a bank official. 
• Step 3: Specify the scheme of your choice and fill in the necessary information like principal amount, maturity date and other details. 
• Step 4: Submit the form along with the required KYC documents. 
• Step 5: Deposit the amount that you want to invest through cash or cheque.

Thereafter, the bank will automatically transfer the principal amount from your bank account to your RD account, which will keep accumulating interest until the RD account reaches its maturity.

How to Calculate RD Interest Rates in ICICI Bank?

You can calculate the RD interest either by using a mathematical formula or an online ICICI Bank RD calculator.

RD Calculation Formula 

The following is the mathematical formula you can use to calculate returns generated from an ICICI Bank RD. 

A = P * (1 + R/N) ^ (NT) 

Wherein,

• ‘A’ = Maturity amount you receive at the end of the tenure 
• ‘P’ = Principal amount you want to invest in a recurring deposit
• ‘N’ = Number of times interest is compounded
• ‘T’ = Tenure

Let us understand this formula with the help of an example. 

For example, suppose you deposit ₹500 every month to your ICICI RD account, which will mature after 24 months from the date of opening. The account accrues interest at the rate of 7.1%, which compounds yearly.

The sum you will receive once the RD matures:

A = P * (1 + R/N) ^ (NT) = 500 * (1 + 7.1/4) ^ (4*24) = ₹12,923.

ICICI RD Calculator 

You can calculate the RD maturity amount by performing the following steps:

• Step 1: Open ICICI Bank’s official site.
• Step 2: Select ‘Recurring Deposit’ from the drop-down in the ‘Deposits’ section.
• Step 3: Click on the ‘RD Calculator’ tab.
• Step 4: In the RD calculator panel, specify whether you are a senior citizen.
• Step 5: Enter the regular monthly deposit amount. You can also use the horizontal slide bar to input the amount. 
• Step 6: Enter the tenure in years or months.

The ICICI Bank RD calculator will automatically display the maturity value of your RD investment along with the interest income. 

Eligibility Criteria to Start an RD Account with ICICI Bank 

• To open an ICICI Bank recurring deposit, you must be a resident Indian.
• On the other hand, ICICI Bank offers NRE (Non-Resident External) and NRO (Non-Resident Ordinary) recurring deposit accounts to non-resident Indians. NRIs are also eligible to make big savings by investing small amounts every month.

Documents Required for Starting an RD account in ICICI Bank

Here is a list of documents you need to submit at the time of opening an ICICI Bank recurring deposit account. 

1. Identity Proof

Any one of the following documents serves as the proof of your identity. 

• PAN Card
• Voter ID Card
• Ration Card
• Driving Licence 
• Senior citizen ID card for applicants above age 60
• Aadhaar Card

2. Address Proof 

The following are some of the documents that you can submit as your address proof. 

• Utility Bill, not older than 2 months (including electricity, post-paid mobile phone, telephone, water bill, piped gas)
• Municipal Tax receipt or Property Tax Bill, not older than one year
• Bank account statements with cheque 
• Passport 
• Post-office Certificate/ID card

Types of ICICI RD Accounts 

ICICI Bank provides the following types of RD accounts:

1. Regular Recurring Deposit Account

The regular RD account of ICICI Bank allows individuals to deposit a decided sum every month for a predetermined period, till the account reaches the maturity date. This account comes with additional interest rate benefits for senior citizen applicants. 

• Minimum Deposit: ₹500/month 
• Maximum Deposit: No limit specified (above ₹500, you can keep depositing in multiples of ₹100)
• Tenure: 6 months to 10 years
• Interest Rate: 4.75% to 7.10% for the general citizens and 5.25% to 7.60% for senior citizens 
• Eligibility: Indian residents

2. NRE Recurring Deposit Account

ICICI NRE (Non-Resident External) RDs are an ideal option for NRIs (Non-Resident Indians) who are seeking to make big savings through monthly investments of their foreign income. Interest earned on these accounts is not taxable in India.

• Minimum Deposit: ₹5,000/month 
• Maximum Deposit: ₹1,00,000/month (above ₹5,000, you can keep depositing in multiples of ₹1,000)
• Tenure: 1 year to 10 years
• Interest Rate: 6.70% to 7.10%  
• Eligibility: NRIs (Non-Resident Indians) and OCI (Overseas Citizen of India)

3. NRO Recurring Deposit Account

ICICI NRO (Non-Resident Ordinary) RDs is another type of NRI RD that individuals can avail to earn interest by investing their income that is earned in India. However, it comes with a tax liability for investors since the interest earned from NRO RDs is subject to TDS (Tax Deducted at Source). 

• Minimum Deposit: ₹5,000/month
• Maximum Deposit: ₹1,00,000/month (above ₹5,000, you can keep depositing in multiples of ₹1,000)
• Tenure: 6 months to 10 years
• Interest Rate: 4.75% to 7.10% 
• Eligibility: NRIs (Non-Resident Indians) and OCI (Overseas Citizen of India)

4. IWish Flexible RD

IWish Flexible RD is a special type of ICICI Bank recurring deposit scheme that offers individuals an opportunity to set up goal-based savings plans conveniently through their phone/laptop. 

• Minimum Deposit: ₹5,000 
• Maximum Deposit: ₹5,00,000
• Tenure: 6 months to 5 years
• Interest Rate: 4.75% to 7.10% for the general citizens and 5.25% to 7.65% for senior citizens 
• Eligibility: Resident Indian with ICICI retail net banking facility or at least one resident savings account linked to ICICI retail net banking account

ICICI RD Premature Withdrawal Penalty

The following are some of the penalties associated with ICICI Bank recurring deposit accounts that you need to know. 

• ICICI Bank charges a penalty at a monthly interest rate of ₹12 per deposit of ₹1,000 for all delayed instalments.
• The bank recovers the total interest so chargeable from the total amount of interest payable at the time of maturity of the RD.
• In case of premature withdrawals of deposits under ₹5 crores within 1 year of account opening, the bank charges a penalty of 0.50%. For 5 years and above, the penalty ranges between 1.00% to 1.50%. 

ICICI Premature Withdrawal Rules

Here are the premature withdrawal rules associated with ICICI RDs that you need to know. 

• In case of delayed instalments, the bank treats a fraction of a month as a full month to calculate interest on RD investment. 
• In case of premature withdrawal/closure of NRE RDs, the bank neither pays interest nor charges a penalty. 
• An account holder can not cancel the requests of premature closure of an RD account once placed with the bank. 
• Upon closure, the bank transfers the entire RD investment to the savings account of the RD account holder. 

How to Close an ICICI RD Account Online?

1. Internet Banking 

• Step 1: Log in to your Internet banking account.
• Step 2: Go to ‘Customer Service’.
• Step 3: Select ‘Service Request’.
• Step 4: Choose ‘Deposits’ under the ‘Category’ section. 
• Step 5: Click on ‘Close Existing Recurring Deposit’. 

2. iMobile Pay

• Step 1: Log in to iMobile Pay. 
• Step 2: Go to ‘Accounts & Deposits’. 
• Step 3: Under the ‘Deposits’ section, choose ‘More Options’. 
• Step 4: Click on the ‘Close RD’ tab. 

The Bank will close the Recurring deposit account instantly and credit the funds to your account.

How to Close an ICICI RD Account Offline?

Here is a stepwise process you need to follow with due diligence to close your ICICI RD account offline. 

• Step 1: Visit your nearest ICICI Bank branch, collect and fill up the RD Account Closure Form.
• Step 2: Sign the filled-up form and submit it to the branch manager or officer in charge. In case there is a joint holder of your RD account, all need to sign the RD closure form.
• Step 3: Attach your KYC (Know Your Client) Documents with the signed RD closure form.

TDS on ICICI RD Interest Rate

According to the Finance Bill effective from June 1, 2015, TDS shall be applicable on the interest earned on recurring deposits.

However, you can prevent ICICI Bank from deducting tax on your Recurring Deposits, by submitting form 15G/15H, if your total income is under the taxable limit.

Loan Against ICICI Recurring Deposit 

ICICI Bank Recurring Deposit Scheme offers loans against RD. The bank treats your RD as collateral and you can avail 80% – 90% of the deposit value as loan amount.

Final Word

By now, you must have acquired an idea of ICICI Bank Recurring Deposit, and how this reputable bank offers services related to this financial instrument. The concept of a steadily accumulating sum to create wealth over time has always been regarded as a way of the wise and patient. 

However, before prioritising any ICICI RD scheme, make sure to verify the rates and terms and conditions with a bank representative. 

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Disclaimer

This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.