Private sector bank ICICI has launched Limited Period Special FD after the increase in the repo rate by RBI. The ‘Golden Years FD’ has been launched on 30 September and customers will be able to invest in it till 6 October. You will get additional interest in the new FD so it is a limited period FD.
The maturity tenure of this FD is from 5 years 1 day to 10 years. In this, senior citizens will get an additional 0.10 percent interest. This interest will be on top of the additional interest of 0.50 percent already being given to them. Explain that ICICI Bank gives 6.60 percent interest to senior citizens on FDs of 5 to 10 years less than Rs 2 crore. This means that senior citizens will get an interest of 6.70 percent in the new FD.
Interest will also be available on the renewed FD , according to the information given on the bank’s website, people opening a new FD will get the benefit of this scheme, as well as those who are renewing their FD during this period, they will also get an additional 0.10 percent interest. . The benefit of this scheme will be available on only one FD opened in one name.
Penalty on Premature
Withdrawal Under this limit period scheme, if the FD is closed on or after 5 years 1 day (before 10 years) then a penalty of 1.10 percent will be imposed. At the same time, if you withdraw this scheme before 5 years and 1 day, the penalty under the Premature Withdrawal Policy will be applicable. All other terms and conditions of this FD are same as for normal FD.
The effect of the increase in the repo rate The RBI has increased the repo rate by 0.50 percent once on 30 September. This is the fourth time in a row that the central bank has increased policy rates. Not only will it be costly to take a loan from this, but the interest rate of FD, RD and savings schemes is also expected to increase.
This will directly benefit the common customers. Explain that RBI has increased the repo rate to 5.90 percent. RBI is increasing the repo rate to control inflation. In August, retail inflation had hit 7 per cent, which is well outside the central bank’s satisfactory range.