ICICI Home Finance Fixed Deposit: Give It a Miss As Interest Rates Are Not the Best

ICICI Home Finance is a subsidiary of ICICI Bank, making the deposits relatively safe for investors. Take a quick look at the features, including the interest rates on the deposits.

Features

1) The deposits comes with a tenure ranging from 12 months to 60 months.
2) The interest rates are payable on monthly basis, quarterly basis and annual basis. The interest rate is also payable on a cumulative basis.
3) The Fixed Deposits have a rating of CARE - AAA (FD) & ICRA - MAAA.
4) TDS is deducted if the amount of maturity of the deposit exceeds more than Rs 5000.
5) There is a loan against the deposit up to 75 per cent of principal deposit.

For a 12-23 month deposit the interest rate payable is 9 per cent per annum, under the annual option, while the quarterly option attracts an interest rate of 8.70 and the monthly income an interest rate of 8.65 per cent. For the period of 24-35 months, the interest rate is 9.25 per cent under the annual plan, whereas the quarterly interest rate is 8.95 per cent and under the monthly option it is 8.90 per cent. The highest interest rate that one can get is 9.25 per cent.

Should you apply to the ICICI Home Finance Fixed Deposit

The interest rates offered in the fixed deposits of ICICI Home Finance is not very attractive. In fact, there are many company deposits that offer interest rate above 10 per cent like Kerala Road transport Finance Corporation, whose deposits are guaranteed by the Government of Kerala. To read more on some super company fixed deposits click here

It's best to give the ICICI Home Finance Fixed Deposit a miss, since the interest rates are more or less in line with banks. But, bank deposits are more liquid and safer than company fixed deposits.

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