Fixed Deposit Monthly Income Option

ICICI Bank FD Income offers regular monthly income, for your choice of tenure with an option of receiving some amount as lump sum. A simple Fixed Deposit (FD) plan, which offers fixed regular monthly income in future by investing a lump sum amount today.

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Want to know more about the features and benefits of this deposit? Let’s break it down for you.

Eligibility

This deposit can be opened by resident individuals, either singly or jointly.

Amount of deposit

The minimum amount to be deposited is ₹1 lakh. Thereafter, you can increase your deposit in multiples of ₹25,000.

Duration of deposit

  • The tenure of this deposit consists of an investment phase and a payout phase (also called benefit phase).
  • The minimum period for the investment phase is 24 months. Thereafter, you can increase the investment phase in multiples of 1 month.
  • The minimum period for the payout phase is 24 months. Thereafter, you can increase the payout phase in multiples of 12 months.
  • The tenure of the deposit is a combination of the investment phase and payout phase. Once specified by you, the depositor, it cannot be changed.

Investment phase

During the investment phase, you open a cumulative Fixed Deposit.

Payout Phase

Once the investment phase is complete, the entire maturity proceeds (principal + interest), as applicable, are invested in an annuity Fixed Deposit for the payout period. And monthly payouts will be credited to your Savings Account.

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Illustration of the deposit tenure

Here is an example that will explain how it works:

Investment PhasePayout Phase
Installment AmountTenureRate of InterestTotal CorpusLump-Sum PaymentTenureMonthly Payout
₹100,000 24 months 5.35% 110,093 Nil 24 months 4,897
₹200,000 24 months 5.35% 220,186 Nil 24 months 9,793

Disclaimer: The numbers and data used for the above calculation are for illustrative purposes only, original numbers may vary.

Rate of interest and tax treatment

  • Your deposit earns fixed interest at the prevailing rates for the entire period of the deposit. This means that the rate of interest remains the same in the investment phase and the payout phase. In case the rate of interest increases or decreases, your deposit will continue to earn interest at the contracted rate during both the investment phase and the payout phase.
  • The rate of interest will be applicable as per the total tenure, including both the investment phase and the payout phase. For instance, if the total tenure of the deposit is eight years, and if it is bifurcated into an investment phase of four years and a payout phase of four years, the rate of interest applicable on the deposit in both the phases will be the same as the rate applicable for eight years at the time the deposit is opened. This is because you enter into a contract for eight years.
  • The interest earned on the deposit during its tenure will be subject to Tax Deducted at Source (TDS).

Partial withdrawal and premature withdrawal

In the case of deposit, partial withdrawal is not permitted in both the phases. However, premature closure is permitted during both the investment phase as well as the payout phase, after the applicable penalty has been deducted.

Conversion

It is not possible to convert any existing FD/RD with ICICI Bank into this product. You can always open a new deposit with us to experience these benefits.

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Frequently Asked Questions (FAQs) for FD Monthly Income Option

What is Fixed Deposit (FD) Income?


Fixed Deposit (FD) Income consists of the below 4 variants:

a) Recurring Deposit (RD) with monthly income option
b) Recurring Deposit (RD) with lump sum and monthly income option
c) Fixed Deposit (FD) with monthly income option
d) Fixed Deposit (FD) with lump sum and monthly income option.

What are the benefits of FD income?


FD Income helps customers to save and meet expected payments related to their future goals/requirements such as:

  • Payment of regular expenses during retirement period
  • Payment of down payment of Home/Auto Loan and also EMI
  • Payment of tuition fees and other expenses related to children's education.

What is the eligibility for applying for FD Income?


FD Income can be opened as per the eligibility criteria defined for each of the below variants:

a) Recurring Deposit (RD) with monthly income option
b) Recurring Deposit (RD) with lump sum and monthly income option
c) Fixed Deposit (FD) with monthly income option
d) Fixed Deposit (FD) with lump sum and monthly income option.

What are the interest rates applicable on FD Income?


Interest rates applicable on FD Income is the same as offered for standard FD.

How much amount can be deposited in FD Income?


The amount that can be deposited in FD Income are as follows:

  • RD with lump sum and monthly income: Minimum amount of Rs 2,000 in multiples of Rs 100 thereof
  • RD with monthly income: Minimum amount of Rs 2,000 in multiples of Rs 100 thereof
  • FD with lump sum and monthly income: Minimum amount of Rs 1 lakh in multiples of Rs 25,000 thereof
  • FD with monthly income: Minimum amount of Rs 1 lakh in multiples of Rs 25,000 thereof.

How can I invest in FD Income?


You can invest in FD Income through any of our branches, Internet Banking as well as iMobile.

What is the minimum investment amount required in FD Income?


The minimum investment amount required in FD Income is as follows:

  • RD with lump sum and monthly income: Minimum amount of Rs 2,000 in multiples of Rs 100 thereof
  • RD with monthly income: Minimum amount of Rs 2,000 in multiples of Rs 100 thereof
  • FD with lump sum and monthly income: Minimum amount of Rs 1 lakh in multiples of Rs 25,000 thereof
  • FD with monthly income: Minimum amount of Rs 1 lakh in multiples of Rs 25,000 thereof.

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