Savings
ICICI Bank FD interest rates: a flat card where the peak is a plateau
ICICI Bank pays 6.50% from 3 years 1 day to 10 years, 7.10% to seniors on 3-to-5 years only, from 10 September 2026. The cliffs, the penalty and the plateau.
ICICI Bank’s retail fixed-deposit card, effective 10 September 2026, pays a peak of 6.50% to the general public on every tenure from 3 years 1 day to 10 years, and 7.10% to senior citizens on the 3-years-1-day-to-5-years band alone — past five years the senior rate drops to 7.00%. There is no 80-plus column, no single-day special, and the peak is a plateau rather than a point.
Rates below are read from ICICI Bank’s own rate page on 10 September 2026 and apply to resident domestic term deposits below ₹3 crore with the premature-withdrawal facility. Confirm the rate on the booking screen; the effective date on the bank’s page is what controls, and the page itself warns that a cached copy may show an older schedule.
The buckets that actually pay
| Tenure | General | Senior citizen |
|---|---|---|
| 7–45 days | 2.75% | 3.25% |
| 46–90 days | 4.00% | 4.50% |
| 91–184 days | 4.50% | 5.00% |
| 185 days to under 1 year | 5.50% | 6.00% |
| 1 year to under 18 months | 6.25% | 6.75% |
| 18 months to 2 years | 6.30% | 6.80% |
| 2 years 1 day to 3 years | 6.45% | 6.95% |
| 3 years 1 day to 5 years | 6.50% | 7.10% |
| 5 years 1 day to 10 years | 6.50% | 7.00% |
| 5-year tax-saver FD | 6.50% | 7.10% |
Nothing is collapsed here: these are the nine buckets the bank prints, plus the tax-saver row alongside them. There are no single-day buckets — no 444-day or 555-day special — which makes ICICI unusual among the large banks in 2026.
For orientation, ICICI’s savings account pays 2.5% a year across all balances, effective 26 June 2025 — a 7-to-45-day deposit pays 2.75%, a quarter-point more for giving up access to the money. On ₹5,00,000 held for 45 days that is about ₹1,700 of interest; at 46 days the rate jumps to 4.00% and the same money earns about ₹2,500.
Where the cliffs are
The cliffs sit at bucket edges, and two of them are large. Day 45 to day 46 is worth 125 basis points, the biggest step on the card; day 184 to day 185 is worth 100; and 364 days to 365 days is worth 75. On ₹5,00,000, a deposit that matures a day short of a year earns roughly ₹27,400; one that reaches the year earns ₹31,250.
Above one year the cliffs are small: 18 months adds 5 basis points, 2 years 1 day adds 15, 3 years 1 day adds 5. Between one year and three years the card moves inside a 25-basis-point range, so choose that tenure by when you need the money, not by the rate.
ICICI is not among the banks in our comparison of FD interest rates across major banks; read its 6.50% peak against the peaks there, most of which sit on a single special tenor rather than a plateau.
Nothing longer than three years pays more, and nothing pays less
Most bank cards in 2026 fall away after a special tenor. ICICI’s never rises to a point in the first place, so the longest commitment is neither punished nor rewarded. A ladder of three-year deposits reaches the same 6.50% with money coming free every year, at the cost of accepting whatever rate exists on each renewal date.
Seniors get a different shape: from 5 years 1 day their rate steps down from 7.10% to 7.00%. On ₹5,00,000 compounded quarterly that 10-basis-point difference is worth about ₹3,500 over five years, so for a depositor over 60 the five-year deposit is the ceiling.
That 5-basis-point gap between the two-to-three-year bucket and the peak is about ₹900 on ₹5,00,000 over three years.
Maturity, and the day after it
ICICI’s deposit terms, updated 16 April 2026, place every fixed deposit on auto-renewal by default — the exceptions are tax-saver deposits, recurring deposits and deposits of ₹2 crore and above — unless the depositor instructs otherwise at least one day before maturity. On the maturity date the deposit renews for its original term at the rate applicable on that date, and the terms treat the renewed deposit as a fresh one; a cumulative deposit renews with the entire maturity proceeds less TDS, a payout deposit with the principal only. A premature renewal — breaking the deposit to rebook it on different terms — is treated as a premature closure with the penalty applied.
ICICI does not publish, on the pages read on 10 September 2026, what an unrenewed matured deposit earns while it waits to be claimed; if you have opted out of auto-renewal, take the money on the day. The FD calculator gives the maturity date for any tenure in days.
The terms state that rates are simple-interest up to six months and quarterly-compounded from six months; cumulative deposits compound on completion of each exact quarter, with simple interest on the broken period; and a calendar year is 365 days whether or not it is a leap year. A monthly-payout deposit is paid at a discounted value, the interest arriving before the quarter it belongs to has ended.
Breaking it early: the rate is rebuilt, then the penalty comes off
The rule is stated on the rate page and again in the terms: on premature withdrawal, interest is paid for the period the deposit actually stayed with the bank, at the rate that prevailed at the time of booking for that shorter period — not at the contracted rate — and a penalty is then deducted from the interest payable. The bank’s own example: a deposit booked for two years and withdrawn after eight months earns the eight-month rate that was in force on the booking date.
| Tenure of deposit | Below ₹25 crore | ₹25 crore and above |
|---|---|---|
| Under 1 year | 0.50% | 0.50% |
| 1 year and above but under 5 years | 1.00% | 1.00% |
| 5 years and above | 1.00% | 1.50% |
The table is keyed to “tenure of deposit”, and neither the page nor the terms say whether that means the tenure booked or the period served. The example below is built so that both fall in the same band.
Take ₹5,00,000 booked for 3 years 1 day at 6.50% and closed on day 400. The period served falls in the one-year-to-under-18-months bucket, which paid 6.25% on the booking date. Deduct the 1.00% penalty and the deposit earns 5.25%, or about ₹28,800 of interest for the 400 days. Had the contracted 6.50% applied for the same period, the interest would have been about ₹35,600. The gap is close to ₹6,850, and on this card the penalty, at about ₹5,500, is four-fifths of it; the rebuild accounts for only about ₹1,400, because ICICI’s one-year and three-year rates are 25 basis points apart. Both figures use simple interest; quarterly compounding lifts each slightly and does not change the comparison.
Four rules sit around that mechanism:
- No interest at all is paid if the entire deposit is withdrawn within seven days of booking.
- A part withdrawal reprices what is left: the remaining deposit takes the rate that applied on the opening date to the smaller amount for the original tenure.
- A joint deposit cannot usually be closed early online. The terms bar premature closure of a jointly held deposit through Net Banking or Mobile Banking whatever the mode of operation, require every joint holder’s consent and a branch visit, and a deposit issued on a paper receipt needs the original back at the branch too — but they exempt Money Multiplier, Flexi and Quantum Optima fixed deposits from that restriction.
- Neither page carries an exemption from the penalty for senior citizens, or for closure on the depositor’s death, on an ordinary deposit. The only death clause on the pages read applies to non-withdrawable deposits. Ask the branch before assuming any waiver.
If the need is temporary, ICICI’s published alternative is an overdraft against the deposit: up to 90% of the deposit, at the deposit’s own rate plus 2% for a general depositor or plus 1% for a senior citizen, with no charge for setting it up and interest only on the amount used. On a 6.50% deposit that is borrowing at 8.50% while the deposit keeps earning 6.50% — two percentage points net on the drawn amount, against a penalty plus rebuild costing 1.25 percentage points on the whole deposit for the period served. The facility is not available on non-withdrawable deposits, and a tax-saver deposit cannot be pledged at all. The general mechanics are in our page on loans against a fixed deposit.
Seniors, and the missing 80-plus band
ICICI publishes two columns, not three: a depositor aged 80 or above gets the senior column and nothing more.
| Category | Uplift over the general rate |
|---|---|
| Age 60 and above, tenures up to 3 years and from 5 years 1 day | +50 basis points |
| Age 60 and above, 3 years 1 day to 5 years, and the tax-saver deposit | +60 basis points |
| Age 80 and above | No separate rate |
The bank’s feature list on the rate page says seniors earn an additional 0.50%, and that is true on eight of the nine buckets. The exception is the band that matters: 3 years 1 day to 5 years pays 7.10% against 6.50%, an uplift of 60 basis points that ICICI’s product page states explicitly, and the tax-saver deposit gets the same 60. On ₹5,00,000 compounded quarterly over three years, the senior rate earns about ₹10,800 more than the general rate.
Three conditions matter. The rate page states that senior-citizen rates apply only to domestic deposits, so an NRO deposit held by a senior earns the general rate. The pages read do not address a deposit held by the karta of a Hindu Undivided Family, so that needs the branch’s answer. And the terms fix interest at the rate applicable on the value date of opening: a depositor who turns 60 during the deposit keeps the general rate until the deposit matures or is renewed. How other large banks handle the same uplift, and which publish the 80-plus band ICICI lacks, is in our page on senior citizen FD rates.
None of this makes an ICICI senior deposit the best home for retirement money. The Senior Citizens Savings Scheme pays 8.2% for the quarter ending 30 September 2026, with sovereign backing and a quarterly payout — 1.10 percentage points above ICICI’s best senior rate — subject to a ₹30 lakh ceiling, an age-60 eligibility test, its own exit rules and a fresh rate notification each quarter. Exhaust the scheme you qualify for first.
The schedules ICICI publishes separately
The tax-saver deposit unusually pays the same as the ordinary five-year deposit: 6.50% for the general public and 7.10% for seniors. What you give up is written in the terms: a fixed five-year term, no encashment before five years, no auto-renewal, no pledge as security for a loan, a ceiling of ₹1,50,000 in multiples of ₹100, a minimum of ₹10,000, PAN mandatory, and a single lump sum with no top-ups. Only resident individuals and HUFs may open one, and on a joint deposit the section 80C deduction goes to the first holder alone. The deduction exists only under the old regime — the new regime, now the default, does not offer it.
The non-withdrawable deposit does not appear on the retail card: below ₹3 crore ICICI’s table shows only the with-premature-withdrawal columns, and the without-premature-withdrawal columns begin on the ₹3-crore-to-under-₹5-crore tab. Its rules are stark — no closure before maturity except in special cases, no interest and a clawback of any already credited where closure is allowed, no overdraft and no auto-renewal. Eight further bulk tabs run from ₹3 crore to more than ₹500 crore; none is retail.
Tax takes the next bite
FD interest is taxable at your slab rate as income from other sources, in the year it accrues, whether or not the bank has paid it out. A cumulative deposit of 3 years 1 day runs past at least three 31 Marches, so its interest is taxed across four financial years even though the money arrives in one.
ICICI’s terms say tax is deducted at source once interest paid or payable across your deposits at the bank crosses ₹50,000 in a financial year, or ₹1,00,000 for a resident senior citizen, and that without a valid PAN tax comes off at the prevailing rate or 20%, whichever is higher; with PAN on record the statutory rate is 10%. Where the TDS due exceeds the interest being credited, the bank marks a lien for the shortfall. Those thresholds are bank-wide, not per deposit, so splitting one deposit into four at ICICI changes nothing.
Where you have no tax liability at all, the declaration that stops TDS is Form 121, which replaced Forms 15G and 15H from 1 April 2026; ICICI’s own FAQ on the rate page still names the older forms. The test is stricter than commonly assumed — both nil estimated liability and total income below the basic exemption limit — and TDS is only an advance credit, not a settlement. The declaration conditions and the accrual rule are in our guide to tax on FD interest.
At 6.50% before tax, a depositor in the 30% slab keeps about 4.5% after cess — that figure, not 6.50%, is what to compare with anything else you are considering.
Insurance stops at ₹5 lakh per depositor per bank
Deposit insurance covers eligible principal and accrued interest up to ₹5 lakh per depositor per bank, in the same right and capacity, after lawful set-off. It is not ₹5 lakh per deposit, per branch or per app.
On a plateau card the peak invites long tenures, and long tenures accrue more inside the cover. A ₹5,00,000 deposit at 6.50% is over the cover from the first quarter. To keep the whole maturity value inside the limit, the principal has to be capped at roughly ₹4.1 lakh on a three-year deposit and roughly ₹3.6 lakh on a five-year one — our own arithmetic on ICICI’s published rate with quarterly compounding, not figures either institution states. Every savings balance, recurring deposit and other FD at ICICI counts against the same ₹5 lakh. Joint accounts, different capacities and claim timing are covered in our page on DICGC deposit insurance.
Before you book
| If the money is needed in | The bucket that fits | General rate | The trap next to it |
|---|---|---|---|
| Under 45 days | 7–45 days | 2.75% | Only 0.25 pp over the 2.5% savings rate, and you lose access |
| Two to three months | 46–90 days | 4.00% | 45 days pays 2.75% — the biggest cliff on the card |
| Three to six months | 91–184 days | 4.50% | 184 days pays 4.50%; 185 days pays 5.50% |
| Six months to a year | 185 days to under 1 year | 5.50% | 364 days pays 5.50%; 365 days pays 6.25% |
| About a year | 1 year to under 18 months | 6.25% | Every day in this band pays the same 6.25% |
| Eighteen months to two years | 18 months to 2 years | 6.30% | 2 years exactly pays 6.30%; 2 years 1 day pays 6.45% |
| Two to three years | 2 years 1 day to 3 years | 6.45% | 3 years exactly pays 6.45%; 3 years 1 day pays 6.50% |
| Three years or more | 3 years 1 day to 10 years | 6.50% | Seniors lose 0.10 pp past five years; the general rate never rises |
Set the tenure in days, read the maturity date on the confirmation screen, decide the renewal instruction at booking, and check that a senior citizen’s deposit is booked in that category — the difference is 60 basis points on the band most seniors will choose, and a deposit booked at the general rate is not repriced later.
Common questions
Does a longer ICICI Bank deposit pay more?
Not beyond three years, and not less either. On the card effective 10 September 2026 the general rate reaches 6.50% at 3 years 1 day and stays at 6.50% all the way to 10 years, so a ten-year deposit earns exactly what a three-year-and-a-day deposit earns. Seniors are different: their 7.10% applies only from 3 years 1 day to 5 years, and from 5 years 1 day the senior rate falls to 7.00%. Longer tenure on this card buys a fixed rate for longer, never a higher one.
Is the senior citizen uplift at ICICI Bank always 0.50%?
No. Eight of the nine buckets add 50 basis points, but the band most seniors choose, 3 years 1 day to 5 years, adds 60: 7.10% against 6.50%. The tax-saver deposit gets the same 60. ICICI publishes only two columns, so there is no separate rate for depositors aged 80 and above. The rate page also states that senior rates apply only to domestic deposits, which leaves an NRO deposit on the general rate, and a deposit booked before the depositor turned 60 stays on the general rate until it matures or renews.
What does breaking an ICICI Bank FD early actually cost?
Two things in sequence. Interest is first recomputed at the rate that was in force on the booking date for the period the money actually stayed, not the contracted rate. A penalty then comes off that: 0.50% where the tenure is under one year, 1.00% from one year to under five, and 1.00% at five years and above for deposits below ₹25 crore. Withdraw the whole deposit within seven days and no interest is paid at all. On a ₹5,00,000 three-year deposit closed on day 400, the penalty is about ₹5,500 and the rate rebuild about ₹1,400.
Does the ICICI tax-saver FD pay less than an ordinary five-year deposit?
No, which is unusual. It pays 6.50% for the general public and 7.10% for seniors, the same as the 3-years-1-day-to-5-years band. What it costs is written in the terms: a fixed five-year lock, no encashment before five years, no auto-renewal, no pledge for a loan, a ₹1,50,000 ceiling and a single lump sum with no top-ups. The section 80C deduction it exists for is available under the old tax regime only; a new-regime taxpayer gets a five-year deposit with the exit removed and nothing in return.
Is a 364-day ICICI FD the same as a one-year FD?
No, and the gap is one of the largest on the card. The 185-days-to-under-one-year bucket pays 5.50%, while one year to under 18 months pays 6.25%, so a deposit that matures a day short of a year earns 75 basis points less on every rupee. On ₹5,00,000 that is roughly ₹27,400 of interest against ₹31,250. Enter the tenure as 365 days on the booking screen and check the maturity date before confirming; the card has no cliff between one year and eighteen months, so a few extra days cost nothing.
Sources
Rates and rules on this page were read directly from the following sources on the dates shown. Figures change — if you are about to act on one, confirm it at the source.
- FD Interest Rates — ICICI Bank FD Interest Rate for general and senior citizens (w.e.f. from September 10, 2026), with the premature-withdrawal penalty table and the rules for deposits without premature withdrawal facility
- Fixed Deposit — product page (minimum ₹10,000, 7 days to 10 years, 0.60% additional senior rate on 3 years 1 day to 5 years)
- Terms and Conditions for Fixed Deposits (PDF, “Updated on Apr 16, 2026, Version 2”) — auto renewal, method of interest calculation, premature and partial closure, TDS, deposits without premature withdrawal facility, 80C fixed term deposits
- Savings Account interest rate w.e.f 26 June 2025
- Tax Saver Fixed Deposit
- Overdraft Against FD
- Guide to deposit insurance
- Small savings schemes — interest rates
- Income Tax Department e-Filing portal