Recurring Deposits (RDs) are a disciplined and low-risk way to build savings by making fixed monthly contributions and earning interest. They suit both short- and long-term goals, allowing you to accumulate funds steadily without taking market risks. Each instalment earns interest and the total amount grows over the deposit term, making RDs a reliable tool for planned savings.
ICICI Bank offers competitive RD interest rates that vary by tenure and category of investor. The product is straightforward to use, with multiple tenure options and easy digital account opening. Be aware that premature withdrawals attract penalties and that interest earnings may be subject to Tax Deducted at Source (TDS) as per applicable tax laws.
ICICI Bank Latest RD Interest Rates of 2025
ICICI Bank’s RD interest rates are tiered by maturity period and differ slightly for senior citizens. The following table shows the rates by tenure for general and senior citizen investors:
| Maturity Tenure | General Investors | Senior Citizen Investors |
|---|---|---|
| 6 months | 4.75% | 5.25% |
| 9 months | 6.00% | 6.50% |
| 12 months | 6.70% | 7.20% |
| 15 months | 7.25% | 7.85% |
| 18 months | 7.25% | 7.75% |
| 21 months | 7.25% | 7.75% |
| 24 months | 7.25% | 7.75% |
| 27 months | 7.00% | 7.50% |
| 30 months | 7.00% | 7.50% |
| 33 months | 7.00% | 7.50% |
| 36 months | 7.00% | 7.50% |
| Above 3 years (up to 5 years) | 7.00% | 7.50% |
| Above 5 years (up to 10 years) | 6.90% | 7.40% |
Interest rates are subject to change and the minimum tenor to open an ICICI RD is 6 months. You can hold an RD for up to 10 years. Always confirm the latest rates with the bank before opening a new RD.
Features and Benefits of ICICI Bank Recurring Deposits (RD)
ICICI Bank’s RD product is designed for accessibility and flexibility. Key features include:
- Low minimum monthly instalment: You can start an RD with as little as ₹500 per month, and increase the amount in multiples of ₹100 to match changing income or goals.
- Flexible tenures: Tenure options range from 6 months up to 10 years, with the ability to choose tenures in multiples of three months to align with your savings horizon.
- Nomination facility: You can assign a nominee for added security and clarity on payout at maturity or in the event of an unforeseen situation.
- Competitive interest: RD rates are comparable to fixed deposits for many tenures, offering higher returns than basic savings accounts. Note that interest is taxable and TDS rules may apply on interest payouts.
- Digital convenience: ICICI Bank allows RD account opening through its net banking platform and the official mobile banking app, enabling a branch-free process for most customers.
Steps to Open a Recurring Deposit with ICICI Bank
You can open an ICICI Bank RD quickly online or via mobile app; alternatively, the bank’s customer care team can assist. Below are step-by-step instructions for each method.
Through Net Banking
- Log in to the ICICI Bank net banking portal using your Internet Banking User ID and password.
- Navigate to ‘My Accounts’ in the main menu.
- Select ‘Open Fixed/Recurring Deposit’ from the dropdown options.
- Choose ‘Open Recurring Deposit’ and enter the required details.
- Specify the monthly deposit amount, tenure and other requested information.
- Review the details, accept the terms and conditions, and submit to complete the RD opening process.
Through iMobile App
- Log in to the iMobile Pay app with your secure PIN or biometric login.
- Open ‘Accounts & Deposits’ and select the ‘Deposits (FD/RD)’ option.
- Tap ‘Open Recurring Deposit’ and follow the on-screen prompts to complete setup.
Through Customer Care
- Call the ICICI Bank helpline and follow IVR prompts to reach a customer care executive.
- Request assistance to open a Recurring Deposit; the executive will guide you through the process and complete the request after necessary verification.
While RDs provide stable and guaranteed returns, unexpected expenses can arise. In such cases, many customers consider personal loans as an option for immediate funds. If you choose a loan, compare interest rates, fees, repayment tenures and processing times before proceeding.
Frequently Asked Questions
Can I withdraw my ICICI Bank RD anytime?
Yes, you can withdraw RD funds before maturity, but premature withdrawal attracts penalty charges and you may forfeit part of the accrued interest depending on the timing of the withdrawal.
Is the RD instalment auto-debited in ICICI Bank?
Yes. If you maintain sufficient balance in the linked account, you can opt for auto-debit of monthly RD instalments to ensure timely contributions and avoid missed payments.
What is the penalty for breaking RD in ICICI Bank?
Penalty charges depend on the original tenure of the RD. Typically, for tenures less than 1 year the penalty can be around 0.50% of the interest; for tenures exceeding 1 year, penalties are usually around 1.00%. Exact penalty rules can vary, so check the bank’s current terms before breaking an RD.
Can I close RD before maturity in ICICI Bank?
Yes, premature closure is allowed, but it may reduce the interest payable and attract a penalty. Review the maturity and breakage terms applicable to your RD at the time of opening to understand the financial impact of early closure.