AAA/Stable Rated NBFC Recently Revised FD Rates, Offering 7.70% Interest To Senior Citizens

In recent months, several Non-Banking Financial Companies (NBFCs) increased and decreased their Fixed Deposit rates along with public and private sector banks following the unchanged repo rate by the Reserve Bank of India (RBI) in February 2023. Earlier, RBI consecutively hiked the repo rate 5 times since May 2022, which encouraged banks & NBFCs to hike their Fixed Deposit Rates. Currently, the repo rate is 6.50%.

ICICI Home Finance Company (ICICIHFC)

Recently, ICICI Home Finance Company (ICICIHFC) has revised fixed deposit interest rates. Following the revision, ICICIHFC now offering up to 7% to 7.45% interest on cumulative & non-cumulative deposit schemes on public deposits.

The NBFC is also offering an additional 0.25% interest for senior citizens and ICICI Group employees. ICICIHFC revised the interest rates on Fixed Deposit on May 11, 2023, on deposits below Rs 2 crore.

Base Rates for Fixed Deposits

Cumulative Deposit Scheme

Tenure (In Months)	Cumulative Plan	**Indicative Yield(Cumulative option)
>=12 to7.00%7.00%
>=24 to7.35%7.62%
>=36 to7.45%8.02%
>=60 to	7.30%	8.45%

Non-Cumulative Deposit Scheme

Tenure (In Months)	Monthly Income Plan	Quarterly Income Plan	Yearly Income Plan
>=12 to6.80%6.85%7.00%
>=24 to7.10%7.15%7.35%
>=36 to7.20%7.25%7.45%
>=60 to	7.05%	7.10%	7.30%

Source - icicihfc.com

Should you invest in the ICICI HFC FD scheme?

ICICI Home Finance Company Limited (ICICI HFC) is a Housing Finance Company regulated by the Reserve Bank of India (RBI) and is a wholly-owned subsidiary of ICICI Bank Ltd. The company recently introduced a gold loan product in select cities. Fixed Deposits issued by ICICI Housing Finance company is rated AAA/Stable by CRISIL, AAA/Stable by ICRA and AAA/Stable by CARE.

The FDs provided by NBFCs are subject to the RBI's directives. According to RBI regulations, these deposits are not covered by the Rs 5 lakh deposit protection guarantee provided by conventional banks. As a result, before investing in the FD schemes offered by the NBFC, depositors should exercise caution.