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ICICI Bank follows HDFC Bank in fixed deposit rate cut; depositors to earn up to 20 bps less
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4 min read | Updated on May 27, 2025, 14:58 IST
SUMMARY
ICICI Bank has revised its fixed deposit (FD) interest rates, reducing them by up to 20 bps for select tenures of FDs below ₹3 crore. After the RBI cut the repo rate in April, banks and financial institutions have been introducing interest rate cuts. ICICI Bank's revised FD rates came into effect on May 27, 2025.
For senior citizens, ICICI Bank offers an additional 0.5%, providing them with higher interest rates.
ICICI Bank has reduced interest rates for fixed deposits (FDs) below ₹3 crore for select tenures by up to 20 basis points (bps). Following the revision, the FD interest rates in ICICI Bank now stand between 3% and 6.85% for the general public and between 3.5% to 7.35% for senior citizens.
The new rates came into effect on May 27, 2025. Previously, interest rates were between 3% and 7.05% for general citizens and between 3.5% to 7.55% for senior citizens.
Just a few days after HDFC Bank slashed its interest rates on fixed deposits (FDs) by up to 20 bps for select tenures, ICICI Bank has also introduced interest rate cuts.
ICICI Bank revised fixed deposit interest rates
ICICI Bank has cut interest rates for deposits of 1 year to less than 15 months, reducing it by 20 bps, from 6.5% to 6.7%. It has also reduced rates for FDs of 15 months to less than 18 months, which now offer 6.6% from 6.8% earlier. Further, it has cut interest rates for many other tenures by 10 bps and 20 bps.
For senior citizens, the bank offers an additional 0.5%, providing them with higher interest rates. The highest rate offered by ICICI Bank is for the tenure of 18 months to 2 years, at 6.85% for general citizens and 7.35% for senior citizens.
| Tenure | General Citizen | Senior Citizen |
|---|---|---|
| 7 to 45 Days | 3% | 3.5% |
| 46 to 90 Days | 4.25% | 4.75% |
| 91 to 184 Days | 4.75% | 5.25% |
| 185 to 270 Days | 5.75% | 6.25% |
| 271 Days to less than 1 Year | 6% | 6.5% |
| 1 Year to less than 15 Months | 6.5% | 7% |
| 15 Months to less than 18 Months | 6.6% | 7.1% |
| 18 Months to 2 Years | 6.85% | 7.35% |
| 2 Years 1 Day to 5 Years | 6.75% | 7.25% |
| 5 Years 1 Day to 10 Years | 6.7% | 7.2% |
| 5 Years (Tax Saver FD) | 6.75% | 7.25% |
Key points about ICICI Bank’s FD interest rates:
- Interest payments are subjected to tax deducted at source (TDS). Senior citizen interest rates are applicable only to domestic term deposits.
- These FDs have a premature withdrawal option, in which interest is paid for the actual period.
- For withdrawals within 7 days, no interest will be paid. Further, penalties may be applicable on premature withdrawals.
ICICI Bank recurring deposit interest rates
For recurring deposits, ICICI Bank offers interest rates ranging from 4.75% and 6.85% for general citizens and from 5.25% and 7.35% for senior citizens.
Here are ICICI Bank RD interest rates applicable from May 21, 2025:
| Maturity Period | General Citizen | Senior Citizen |
|---|---|---|
| 6 months | 4.75% | 5.25% |
| 9 months | 6.00% | 6.50% |
| 12 months | 6.50% | 7.00% |
| 15 months | 6.60% | 7.10% |
| 18 months | 6.85% | 7.35% |
| 21 months | 6.85% | 7.35% |
| 24 months | 6.85% | 7.35% |
| 27 months | 6.75% | 7.25% |
| 30 months | 6.75% | 7.25% |
| 33 months | 6.75% | 7.25% |
| 36 months | 6.75% | 7.25% |
| Above 3 years up to 5 years | 6.75% | 7.25% |
| Above 5 years up to 10 years | 6.70% | 7.20% |
Banks and financial institutions in India have been cutting interest rates since April after the Reserve Bank of India (RBI) announced a 25 bps repo rate cut. With cheaper borrowing due to the repo rate cut, banks no longer need to offer high-interest FDs to citizens, leading to interest rate cuts. More repo rate cuts are expected in the coming months, which means that FD interest rates might decrease even further in the near future.
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