ICICI Bank offers a standard interest rate of 4% per annum on both kinds of domestic savings accounts it offers:
1.Basic Savings Bank Account
2.Savings Account with cheque book facilities.
This rate has been in effect since May 3 2011 and is subject to change at any time.
ICICI Bank offers the same interest rate of 4% for senior citizens as well. Unlike fixed deposit interest rates, there is no increased rate for customers above the age of 60.
Minimum balance required
There is, however, a difference with regard to the minimum balance required to be maintained in the account, depending on the location of the account.
a. Customers with the Basic Savings account do not need to maintain a minimum balance.
b. Customers with a cheque book facility need to maintain the following minimum balance: Metro and urban areas – Rs. 10,000; Semi urban – Rs. 5000; and Rural – Rs. 2000.
c. Non-resident NRO and NRE accounts also enjoy the same 4% interest rate. However, a higher minimum balance is required on these savings accounts.
ICICI Bank interest rate on savings account
Most banks, including ICICI, offer an interest rate of 4% p.a. on savings bank accounts. Earlier, the RBI had laid down a uniform interest rate on savings accounts for all banks which meant that there was no difference in the amount you earned as interest, regardless of which bank you had your money in. However, the RBI now allows banks to set their own interest rates for money held in savings accounts. This has led to more competition, and while some banks offer an interest rate of between 5-7% per annum, many banks in India continue to offer a standard rate of 4% per annum.
How do you calculate the interest you earn on the money in your account? If, for instance, you have Rs 50,000 in a savings account and your bank offers an interest rate of 4% per annum, you will earn Rs 2000 a year in interest. (4% of 50,000 = 2000.) You can use a calculator to learn what you will receive for a particular sum, for a specific tenure and interest rate.
Interest calculated on daily balance: In addition, now the interest is calculated on the basis of the daily balance in your account as opposed to the earlier system which was calculated based on the minimum amount you had in your account in the month. So now you earn money for every rupee that you keep in your account.
The interest earned on money in a savings account is usually paid out twice a year and credited to your account directly.
ICICI bank interest rate on fixed deposits
ICICI bank offers varying interest rates for FD Schemes based on
i. Availability of premature withdrawal facility
ii. Amount of deposit ( Below Rs. 1 crore or above)
iii. Tenure of deposit
iv.Senior citizen eligibility
How do I calculate the interest on a fixed deposit?
In general, the interest rates on a fixed deposit range from 4-9% per annum, depending on the tenure and issuer.
It is simple to calculate the money you will earn as interest in an FD. Many banks offer an online Fixed Deposit calculator tool which helps you calculate the returns on your deposit. All you need to do is to enter some basic details including the deposit amount, deposit tenure and interest rate offered on the chosen FD scheme. The calculator will let you know how much you will earn as interest on maturity of your deposit.
You can use the interest calculator to check the interest returns on the FD schemes offered by different banks so that you can make an informed decision while choosing between the various options.
Fixed deposits are offered by banks and non-banking financial institutions as well as corporates. The interest you earn will vary based on
a.the tenure of the deposit
b. the amount you deposit
c. the interest rate offered
The interest rate in turn varies depending on the issuer’s internal policies and government regulations. For example, senior citizens enjoy a higher interest rate in India.