This ICICI Bank fixed deposit plan gives you free term life insurance worth Rs 3 lakh, auto-investment in mutual fund SIPs

The ICICI Bank today launched ‘FD Xtra’, a range of innovative Fixed (FD) / Recurring (RD) deposits with exclusive new benefits like free term life insurance.

To apply for ‘FD Xtra’ deposits, customers can visit their nearest ICICI Bank branch. Additionally, they can apply for ‘FD Income’ through internet banking. Reuters

Upbeat over Budget 2019 proposal to increase the TDS (tax deducted at source) threshold on Fixed Deposit and other savings products to Rs 40,000 from Rs 10,000, ICICI Bank has launched a range of fixed deposit and recurring deposit plans. The bank said that the budget proposal will encourage people to invest in the products. The bank today launched ‘FD Xtra’, a range of innovative Fixed (FD) / Recurring (RD) deposits with exclusive new benefits like free term life insurance.

"The new unique term-deposits have been specially designed to meet life-stage needs and goals of customers including term-insurance, saving for down-payment of home and car, retirement planning, child education and fulfilling travel aspirations among others. The new range of deposits will be available to customers within the next few days," said the bank in a statement.

“Fixed and recurring deposits have long been a fundamental investment for most investors, irrespective of their risk profile. With the prevailing volatility in financial markets, we see a renewed interest by customers to invest in fixed and recurring deposits as they offer a combination of attractive interest rates, liquidity, safety of capital and assured returns," said Pranav Mishra, Head – Retail Liabilities Group.

Mishra said that the Budget proposal to increase the TDS threshold on FD and other savings products will encourage customers to invest more in Fixed Deposits. ”

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The first of the ‘FD Xtra’ deposits is named ‘FD Life’. It offers customers, who are 18-50 years of age, the dual benefit of investment growth via FD and security through a free term life insurance of one year for the FD holder.

"This first of its kind combo in the industry offers the unique benefit of a free term life insurance from ICICI Prudential Life Insurance Company of Rs 3 lakh on opening an FD of at least Rs 3 lakh for a tenure of minimum two years. In addition to getting a competitive interest rate, the customer gets a complimentary insurance cover for one year. The customer has the option to renew it next year," it said.

Another deposit plan is ‘FD Invest’ which will help customers invest the interest earned on FDs in monthly Systematic Investment Plans (SIPs) of a mutual fund of their choice from ICICI Prudential Asset Management Company. Available with a FD of at least Rs 2 lakh for a minimum tenure of one year, ‘FD Invest’ safeguards principal amount. Simultaneously, it offers an opportunity to customers to invest in mutual fund through the interest generated by the FD.

Another plan is ‘FD Income’. Available in the form of FDs and RDs, they offer customers the flexibility of receiving their maturity proceeds in the way that suits their goals, claimed the bank.

"Customers can choose to receive the entire maturity amount as a monthly income for a tenure of their choice. Alternatively, they can choose to receive 30% of the amount as lump sum on maturity of the investment and the remaining 70% as a monthly income for a tenure of their choice. Maximum tenure for all term deposits, including investment phase and payout phase, is 10 years," it said.

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To apply for ‘FD Xtra’ deposits, customers can visit their nearest ICICI Bank branch. Additionally, they can apply for ‘FD Income’ through internet banking.

ICICI Bank also offers a platinum credit card to customers against FD without any joining or annual fees. This enables new-to-credit customers to conveniently get a credit card.

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ICICI Bank Fixed Deposits