ICICI FDXtra is a new fixed deposit & recurring deposit scheme launched by ICICI Bank. FDXtra offers extra benefit of term insurance, mutual fund SIP or fixed income along with the fixed deposit. That is the reason word extra is attached to this product. A combination of attractive interest rates, liquidity, the safety of capital and assured returns are positive parts of ICICI FDXtra. If you are planning to invest in the fixed deposit you should look at ICICI FDXtra. In this post, I will share complete information about FD Xtra such as – What is ICICI FDXtra? How ICICI FDXtra works? How you can invest in ICICI FDXtra? Which products are proposed under FDXtra? Should you invest in ICICI FDXtra?
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What is ICICI FDXtra?
ICICI FD Xtra is a new range of fixed deposit and recurring deposit scheme that offers extra benefits to the customer. There are multiple fixed deposit products under this scheme. All these products are linked with various financial goals of customers. This includes life insurance coverage via term plan, option of investing in the stock market via Mutual Fund SIP or retirement goals such as higher education, retirement corpus, regular income etc.
The interest rate offered on these FD products are the same as a general FD provided by ICICI Bank. The only difference is selection of additional features. There are three different products under this scheme.
- FD Life
- FD Invest
- FD Income
- FD Card
ICICI Bank FDXtra – FD Life
FD Life is first variant under this scheme. It is two-in-one investment cum life insurance product. You can avail free insurance benefit from this product. The features associated with this product are given below.
- FD Life is offered to customers within the age group of 18 to 50 years.
- This scheme offers dual benefits of investment growth as well as free term life insurance.
- The free term life insurance coverage is up to 3 Lakh and available only on opening of FD of 3 Lakh with minimum tenure of two years.
- The complimentary insurance coverage is only for one year and provided by ICICI Prudential Life Insurance. Customer has option to renew insurance next year.
Should you invest in FD Life?
Few Important points of consideration before investing in FD Life –
- The life insurance coverage of 3 Lakh is very low and may not be suitable for your requirement.
- The cover is free only for the first year. Second year onwards you need to pay renewal amount.
- Insurance cover is offered only with a minimum tenure of 2 years and with minimum FD of 3 Lakh. This means FD Life comes with lock in period of 2 years.
- In case of Partial/Premature withdrawal of deposit, the free life cover offered to customers will be withdrawn.
Free term insurance should not be the only reason to invest in ICICI FD Life. You should compare the interest rate offered by other banks for the same tenure.
Also Read – 5 Best Unique Fixed Deposit Schemes for Investment
ICICI Bank FDXtra – FD Invest
FD Invest is the second variant under this scheme. It is pure investment product where you invest interest earned in to Mutual Funds via SIP route. The key features of FD Invest are given below.
- FD Invest help customer to invest the interest earned on FDs in monthly Systematic Investment Plans (SIPs) of a mutual fund.
- SIP would be of customer choice but from ICICI Prudential Asset Management Company only.
- Minimum investment amount in FD Invest is 2 Lakh for minimum tenure of 1 year.
- SIP amount is minimum Rs.1000 and SIP frequency is monthly.
Should you invest in FD Invest?
Few Important points of consideration before investing in FD Invest –
- Please note that FD Invest allows you to invest in the mutual fund scheme of ICICI prudential asset management only.
- Minimum Fixed deposit amount of 2 Lakh for 1 year is required.
Instead of investing in FD Invest you can look at FD interest withdrawal plans with a bank offering higher interest and invest in mutual fund of your choice.
ICICI Bank FDXtra – FD Income
FD Income is the third variant under this scheme. FD income is like regular income plan. You can select pay out phase. The key features associated with FD Income are given below.
- FD Income is available in the form of fixed deposit and recurring deposits.
- The maturity amount of fixed deposit can be received as a monthly income for a tenure of customer choice.
- Alternatively, customer can choose to receive 30% of the maturity amount as lump sum and the remaining 70% as a monthly income.
- Fixed deposit consists of investment phase and pay out phase. In investment phase you need to invest money in the pay-out phase you will get pay out.
- Maximum tenure for all term deposits, including investment phase and pay out phase, is 10 years.
- Partial withdrawal is not allowed. Premature closure is permitted after deduction of penalty.
Should you invest in FD Income?
Few Important points of consideration before investing in FD Income –
- FD Income can act as an alternative of pension scheme.
- Minimum deposit amount is 1 Lakh.
- Partial withdrawal will not be permitted under this plan.
FD Income seems to be a good plan but, you should check other Monthly income schemes before making investment in this scheme.
ICICI Bank FDXtra – FD Card
FD Card is next variant of FD Xtra. If you are not getting credit card approval you can use FD Card to get credit card. Key Features of FD Card are given below.
- FD Card offers an instant Credit Card with Fixed Deposit without joining and annual fees.
- You can enjoy credit limit which is 85% of your FD amount.
- The FD can be either traditional or cumulative.
If you are new to credit card and planning to apply for credit card you can opt for FD Card.
How to apply ICICI Bank FD Xtra option for FD Life, FD Invest and FD Income schemes?
To apply for FD Xtra deposits, customer can visit their nearest ICICI Bank branch. Additionally, they can apply for FD Income through internet banking.
I hope you have got a complete understanding of ICICI FD Xtra.
Do share your views in the comment section given below.
For more information visit ICICI Bank Website.