New Delhi, May 12: In a major move amid the lockdown caused due to novel coronavirus pandemic, ICICI Bank has slashed the interest rates on fixed deposits by up to 50 basis points (bps). The new rates are effective from May 11, Monday. After the new revisions, the FDs up to one year will fetch 5.25 percent interest, while FDs with tenor above will earn 5.7 - 5.75 percent interest. SBI Wecare Deposit: State Bank of India's Special Fixed Deposit Scheme for Senior Citizens From Today, Check New FD Rates Here.

The bank's interest rate cut move comes amid reports that banks are now flush with deposits and scope for additional lending has been reduced amid the COVID-19 crisis and economic breakdown. ICICI Bank Registers 26% Rise in Standalone Net Profit at Rs 1,221 Crore in Last Quarter of FY 2019-20.

After the revision, the maximum return offered by the bank is 5.75 percent interest on Fixed Deposits maturing after two years of the tenor. Senior citizens will get 50 bps additional interest 6.25 percent for this tenure.

Interest rates on Fixed Deposits (Less than Rs 2 Crore)

Tenure Period Rate of Interest (% p.a.) w.e.f May 11, 2020
General Senior Citizen*
7 days to 14 days 3.25 3.75
15 days to 29 days 3.50 4.00
30 days to 45 days 3.75 4.25
46 days to 60 days 4.25 4.75
61 days to 90 days 4.25 4.75
91 days to 120 days 4.25 4.75
121 days to 184 days 4.25 4.75
185 days to 289 days 4.75 5.25
290 days to less than 1 year 5.25 5.75
1 year to 389 days 5.70 6.20
390 days to < 18 months 5.70 6.20
18 months to 2 years 5.75 6.25
2 years 1 day up to 3 years 5.75 6.25
3 years 1 day up to 5 years 5.75 6.25
5 years 1 day up to 10 years 5.75 6.25
5 Years Tax saver FD (Maximum up to Rs. 1.50 lac) 5.75 6.25

(Source: ICIC Website)

Fixed Deposits are considered as one of the safest options for investors in the country as they get assured returns on the pre-set investment period. Interest rates are better on FDs than on savings account.

(The above story first appeared on LatestLY on May 12, 2020 12:41 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).