After HDFC Bank and SBI, ICICI Bank has raised interest rates on fixed deposits under Rs 2 crore with effect from 16 December.

The rate has gone up by up to 60 basis points (bps) on fixed deposit tenures of 15 months and above. Non-senior citizens can now earn interest of 7% on these FDs and senior citizens will get 7.50%.

The interest rate increase on FDs across tenures has come a month after the last revision. Banks have launched a deposit war as credit has grown faster than deposit.

7% interest rate on these FDs

Non-senior depositors can earn 7% interest rate on FDs maturing in 15 months upwards. While the maximum increase of 60 bps is for deposits maturing in 15 months to 2 years, the bank has hiked interest rate by 50 bps from 6.50% to 7% on those FDs which have a tenure between 2 years 1 day to 3 years. A 40-bps hike is on deposits maturing in 3 years 1 day to 5 years (up from 6.60% to 7%).

 The interest rate on 5-year tax-saving FDs has gone up by 40 bps, from 6.60% to 7%.

 6.90% interest rate

The bank has raised the interest rate by 40 bps to 6.90% on deposits maturing in 5 years 1 day to 10 years.

 6.60% interest rate

Deposits maturing in 1 year to 389 days and 390 days to 15 months will fetch an interest rate of 6.60%, up 50 bps from 6.10%.

5.75% interest rate

The bank raised the interest rates on FDs maturing in 290 days to less than 1 year by 25 bps, from 5.50% to 5.75%,

5.50% interest rate on these FDs

Non-senior deposits can earn 5.50%, up by 25 bps, on these FDs: maturing in 185 days to 210 days; 211 days to 270 days; 271 days to 289 days.

Other FD tenures

The bank will continue to give a 3% interest rate on deposits maturing in the next 7 to 29 days, and a 3.50% interest rate on deposits maturing in the next 30 to 45 days.

Interest rates have been raised by 25bps on all tenures of less than one year. The bank is offering 4% interest rate on deposits maturing in 46 days to 60 days, and for tenure of 61 days to 90 days it is 4.50%. Deposits maturing in 91 days to 184 days will now earn an interest rate of 4.75%.

Senior citizens

ICICI Bank is offering senior citizens 0.50% extra interest rate over and above the individual rates.

In addition to this, the bank will now offer additional interest rates on FDs of 0.10% to resident senior citizen customers under the ICICI Bank Golden Years FD. The duration of this special senior citizen treatment is from 20 May 2020 to 7 April 2023, and the eligible tenure ranges from 5 years and 1 day to 10 years.

The special interest rate benefit for older adults under the ICICI Bank Golden Years FD is applicable on a single FD registered via ICICI Bank of an amount less than Rs 2 crore. The additional rate will be applicable on new deposits made as well as deposits renewed during the valid duration of ICICI Bank Golden Years Fixed Deposit.

"In case a fixed deposit is opened and the above scheme is prematurely withdrawn/closed after, on or after 5 years 1 day, the applicable penal rate will be 1.10%. In case the deposit opened in the above scheme is prematurely withdrawn/closed before 5 years 1 day, the prevailing premature withdrawal policy will be applicable," ICICI Bank said in its website.

On domestic deposits under Rs 2 crore, ICICI Bank staff (including retired employees) would receive an additional 1% rate of interest. Additionally, the new fixed deposit interest rates will be applied to both new and renewed fixed deposit accounts with the ICICI Bank.