ICICI Bank has reduced interest rates on FD and RD. This change has happened after RBI cut the repo rate by 0.50 percent. The new rates are effective from 9 June. The bank has reduced the interest rates for general citizens from 3 percent to 6.6 percent and for senior citizens from 3.5 percent to 7.1 percent. Now less interest will be available on the period of 1 to 5 years.
ICICI Bank Cut Interest Rate on Fixed Deposit: ICICI Bank has cut interest rates on fixed deposits (FD). This decision came after RBI cut the repo rate by 0.50 percent on June 6. The new interest rates have come into effect from June 9, 2025. The bank has cut up to 25 basis points on FDs with amounts less than Rs 3 crore. This is the first major bank to reduce FD rates immediately after RBI’s move. The new rates have been fixed separately for both general and senior citizens. Earlier, where senior citizens used to get a maximum interest of 7.3 percent, now it has come down to 7.1 percent.
How much interest rates have decreased
- ICICI Bank has reduced interest rates on FDs of different tenures. In which
- The interest rate on FDs of 46 to 90 days has been reduced from 4.25 percent to 4 percent.
- FDs of 91 to 184 days will now get 4.5 percent interest instead of 4.75 percent.
- The rate on FDs of 185 to 270 days has come down from 5.75 percent to 5.5 percent.
- The interest on FDs of 271 days to less than 1 year has now come down from 6 percent to 5.75 percent.
How much interest will be given on FD
- FDs of 1 year to 15 months will now get 6.25 percent interest, which was 6.5 percent earlier.
- The rates on FDs of less than 15 months to 18 months have been reduced from 6.6 percent to 6.5 percent.
- The interest rate on FDs of 2 years 1 day to 5 years has been reduced from 6.75 percent to 6.6 percent.
- The new rates on 5 years 1 day to 10 years and tax saver FDs are also 6.6 percent.
How much impact on senior citizens
Senior citizens will now get interest ranging from 3.5% to 7.1%. Earlier these rates were from 3.5% to 7.3%. There has been a slight impact in the short term but long term FDs are still getting good rates from the market.
New rates on recurring deposits (RD)
ICICI Bank has also implemented new interest rates on recurring deposits (RD). Now general customers will get interest ranging from 4.5 percent to 6.6 percent and senior citizens will get interest ranging from 5 percent to 7.1 percent. At the same time, if a customer withdraws money before the completion of the fixed deposit (FD), then he will be given interest for that period according to the interest rate applicable in the bank at that time, and not according to the rate fixed at the time of booking the FD. Apart from this, a penalty will also be imposed for breaking the FD before time.
