Fixed Deposit – FAQs
1. What options are available while opening a Fixed Deposit ("FD") account with ICICI Home Finance Company Limited ("ICICI HFC”)?
You have the option of opening / renewing the fixed deposits under either of the traditional or cumulative scheme. Under the traditional scheme, interest would be paid on monthly, quarterly or annual basis depending on the scheme subscribed to, by you as depositor. In cumulative deposits, interest is accumulated with the deposit amount, which again is eligible to earn interest on monthly / quarterly / annually compounding principle. The principal as well as the accumulated interest is paid to the customer only upon maturity or premature withdrawal.
2. Who can open FD account with ICICI HFC?
Following entities can open FD account with ICICI HFC:
(a) Any resident Indian
(b) Any individual who comes under definition of 'Non-Resident Indian'/'Person of Indian Origin' as defined by the Government of India/Reserve Bank of India, from time to time.
(c) Non-individual resident legal entities like Hindu Undivided Family, Trust, Association of Persons, Societies, Firms, Companies and Foundations etc.
3. Under what regulations, the fixed deposits accepted by HFC’s are governed?
The public fixed deposit schemes of HFC’s are governed by regulations issued by National Housing Bank (“NHB”), the regulatory authority of HFC’s. The applicable regulations include National Housing Bank Act, 1987, Housing Finance Companies (NHB) Directions, 2010, guidelines circulars and notifications issued by NHB from time to time.
4. How do I approach ICICI HFC to open a FD account?
5. What are the documents required for opening an FD account?
The documents required (apart from a duly filled FD Application Form) are: 1. KYC documents that include identity proof, age proof and proof of current residence 2. Copy of PAN card 3. Cheque/Demand Draft for deposit amount 4. Form 15G/15H for tax deduction at Nil/lower rate, if applicable.
6. What is the minimum amount required to place a FD with ICICI HFC?
The minimum deposit amount under different income plans for individual investors is Rs. 10,000/- under Annual / Cumulative income plan; Rs. 20,000/- under Quarterly income plan and Rs. 40,000/- under Monthly income plan. Any additional amount should be in multiples of Re 1/-. In case of renewal, amount of FD can be minimum of Rs 5000/- and any additional should be in multiples of Re 1/-.
7. Will I get the FD receipt?
Yes, ICICI HFC will issue FD receipt acknowledging the money deposited by you with us.
8. What is the range of tenure for which I can open a FD account?
If you are a resident Indian individual/entity, you can open a FD account with ICICI HFC for a minimum tenure of 1 year to maximum tenure of 5 years. If you are a non-resident Indian, you can open a FD account from minimum tenure of 1 year to a maximum tenure of 3 years. However, within these time limits, the tenure of deposits may differ from scheme to scheme.
9. Are interest rates same for all the deposit schemes?
Yes, several accounts can be opened with the same name but the interest income will be clubbed.
10. At what frequency will I receive interest on my FD?
Interest is paid as per the FD income plan selected by you while depositing money with ICICI HFC.
For the Traditional scheme, the interest on FD is paid on a monthly/quarterly/annual basis based on the monthly/quarterly/
annual Income Plan opted by you.
For the Reinvestment scheme, the interest is compounded to the deposit amount on an annual basis on March 31st, every year and the accumulated interest will be paid on maturity along with deposit amount.
11.What is compounding in FDs?
In case of deposit with Cumulative option, interest accrued is added to the existing deposit amount at the end of every year on 31st March. Cumulative scheme of ICICI HFC’s FD is compounded annually.
12. What is the start date of interest on FD?
For all deposit products interest will accrue from the date of realisation of the Cheque / Demand Draft / credit of funds in Company's account, subject to receipt of FD Application Form and other KYC document to the satisfaction of ICICI HFC.
13. Can different FD accounts be opened in the name of single depositor?
Yes, single depositor may open several deposit accounts.
14. Can I have a FD account jointly?
Can I have a FD account jointly?
Yes, if you are an individual, you can open an FD account in joint names with the clause “First Depositor or Survivor(s)”1, At ICICI HFC, you can make deposits in joint names with maximum of three persons.
15. What is 'nomination'?
Through nomination facility, the depositor may nominate a person to whom ICICI HFC should pay the deposit amount in case of death of the depositor. For availing this facility, you should fill the details covered under heading “Nomination” in FD Application Form. Please note that this facility is not available to non-individual entities/power of attorney holders or a guardian applying on behalf of a minor.
16. Can the FD be made in the minor's name?
Yes, the guardian of the minor can sign on his behalf on the FD Application Form.
17. How can the deposits be redeemed?
The deposit receipt duly discharged with a revenue stamp of requisite value should be surrendered to ICICI HFC at least 7 days prior to the maturity date of FD.
18. What is the mode of getting payment on redemption?
The redemption payment will be in the form of Fund Transfer (NEFT / RTGS) / Demand Draft or any other mode as ICICI HFC may deem fit. Direct credit option may also be used if you have an account with ICICI Bank Limited.
19. Can I redeem my FD before the original term? If so, are there any conditions applicable to the same?
Yes, FD can be withdrawn before the original term of the FD. In accordance with the provisions of the Housing Finance Companies (NHB) Directions, 2010, on a request being made by a depositor, premature withdrawal of the deposit may be allowed subject to the following conditions:
No deposit will be repaid within three months from the date of its acceptance.
“Maximum interest payable shall be 4% p.a.” for Individual depositors and “No Interest” in case of other category of depositors if, the deposit is withdrawn within six months but after three months from the date of deposit.
For premature withdrawal after six months but before one year from the date of its acceptance, the interest may be paid @ 2% lower than the minimum rate of interest offered by IHFC while accepting public deposits.
For premature withdrawal after one year from the date of its acceptance, the interest may be paid @ 1% lower than the interest rate applicable for tenure for which deposit has run if the deposit had been originally accepted for such tenure.
In case of death of the depositor, the deposit will be repaid to the joint depositor / nominee / legal heirs (as applicable) with interest at the contracted rate up to the date of repayment of such deposit.
20. How is the FD renewed?
Subject to the FD scheme being open, the deposit may be renewed on maturity by submitting a duly filled fresh FD Application Form within one month from the date of maturity. It is necessary that the fresh FD Application Form should be submitted along with the duly discharged old FD receipt with revenue stamp of requisite value. The renewal will be subject to the terms and conditions of the FD scheme as applicable on the maturity date of the old deposit.
21. Is FD transferable?
No, FD is non- transferable.
22. Can a loan be obtained from ICICI HFC against the security of the FD?
Yes, loan facility is available at the discretion of ICICI HFC, which can be availed only after three months from the date of deposits and up to 75% of the deposit amount subject to certain terms and conditions as mentioned on the FD Application Form. Please note that this facility is available only to individuals (other than minors and NRIs) and HUFs.
23. How can a depositor change the address etc. during the term of deposit?
An application requesting to update the address etc. may be submitted to ICICI HFC along with the proof of such change, like new residence proof'. All the account holders should sign the application.
24. What if one loses the FD Receipt / Interest or Refund Instrument etc.?
In the event of loss of the Fixed Deposit Receipt, Interest or Refund Cheque / Demand Draft, ICICI HFC should be immediately informed about the loss of the instrument. ICICI HFC may issue a duplicate Fixed Deposit Receipt, Interest or Refund Cheque / Demand Draft, subject to non encashment of the original instrument, upon receipt from the depositor of a 'letter of loss of instrument' and an indemnity in the prescribed form (Indemnity Form for Duplicate FDR)
to its satisfaction and after compliance with such other formalities as may be required by the ICICI HFC.
25. If legal disputes arise, what is the resolution mechanism?
Disputes, if any, arising in connection with ICICI HFC's FDs, will be subject to jurisdiction of Courts at Mumbai.
26. Are public deposits of any HFC guaranteed by NHB?
No. Though ICICI HFC is within its regulatory framework, NHB does not undertake any responsibility for the repayment of deposits/discharge of liabilities by ICICI HFC. The depositor is advised to satisfy himself about the financial position and all relevant aspects before placing his deposit with any HFC.
Tax Deducted at Source (TDS)
27. When do I become liable for TDS?
If the aggregate interest income that you are likely to earn for all your deposits is greater than Rs. 5,000/- in a financial year, you become liable for TDS, subject to submission of Form 15G (For entities other than Companies/Firms)/15H (For Senior Citizen who is of the age of 65 years or more) or a certificate for lower/nil deduction of TDS issued by Income Tax Authorities u/s 197 of the Income Tax Act, 1961.
- Deposits held by minors are also subject to TDS. The credit for TDS can be claimed by the person in whose hands, the minor's income is included.
In case of NRIs, any amount of interest paid/credited during the financial year shall attract TDS irrespective of the aforesaid exempted amount as per the Income Tax Act, 1961 accordingly. For availing the benefit of the DTAA (Double Taxation Avoidance Agreements) then NRI depositors shall be required to provide Tax Residency Certificate of the country of their residence along with a Declaration Form available with NRI FD Application Form. No TDS shall be deducted if the NRI depositor provides us a certificate for lower/nil deduction of TDS issued by Income Tax Authorities u/s 197 of the Income Tax Act, 1961.
28. When is TDS deducted?
TDS is deducted every time the Company pays or credit interest during the financial year. In addition, TDS is also deducted on interest accrued (but not yet paid) at the end of the financial year viz. 31st March.
29. Who is considered Senior citizen?
Citizens above the age of 60 years are considered as senior citizens.
30. Do senior citizens get any extra benefit on the FDs?
Yes, they do get extra benefits in the form of special interest rates that may vary from scheme to scheme. While placing the deposit with ICICI HFC, along with other required documents, the depositor needs to provide proof of age establishing that he/she is a senior citizen.
31. Can the account be opened jointly with a non-senior citizen with special rate applicable to senior citizens?
Yes, provided the first account holder is a senior citizen.
32. Which documents are required to be submitted as proof of age of senior citizens?
To avail benefits as senior citizen, the depositor is required to submit self attested copy of one of the following documents:
Secondary School Leaving Certificate
- Life Insurance Policy
- Voter's Identity Card
- Birth certificate issued by the competent authority
- PAN card
- Driving license
- Any other document acceptable to the Company
This FAQ is only meant to clarify certain basic questions on Fixed Deposit scheme. The information given is included only for general purpose and the depositors should be aware that the relevant rules, regulations, or their interpretation might change. We strongly advise depositors to contact our Call Centre / ICICI HFC branches for any additional information/clarifications. Please read the notes, guidelines and checklist given on the application forms before filling up / submission of the same to ICICI HFC / its representatives. For KYC related queries, you are requested to refer to the FAQs on KYC guidelines.
Nothing contained herein shall constitute or be deemed to constitute an advice, an offer, invitation or solicitation to avail any facility offered by ICICI HFC.
The information contained herein is being communicated to you solely for the purposes of providing information regarding the facilities that we currently offer subject to applicable laws and regulations. No reliance may be placed for any purpose whatsoever on the information contained in this presentation or on its completeness. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially.
The information and/or intellectual property contained herein may not be altered in any way, nor transmitted copied or distributed in part or in whole to any other person or to the media, or reproduced in any form without prior written consent of ICICI HFC or the relevant owner of the intellectual property as the case may be.