11.39% Yield – ICICI Home Finance FD Scheme 2020 – Should you invest?

ICICI-Home-Finance-Fixed-Deposits-in-2020-ReviewICICI Home Finance FD Scheme 2020 Review


ICICI Home Finance FD offers highest interest rates where one can get yield up to 11.39%. Banks are reducing interest rates in recent months. Recently RBI has reduced Repo rate and banks started reducing the interest rates further. Banks are currently offering 5% to 7% interest rates. ICICI Home Finance Fixed Deposit rates are far higher compared to Bank FDs. What are the features of ICICI Home Finance FD Scheme? What are the interest rates of ICICI Home Finance Fixed Deposit Scheme? Is it safe to invest in ICICI Home Finance Fixed Deposits? Should you invest in ICICI Home Finance Fixed Deposit or avoid?

Also Read: Top Rated Company FD Schemes to invest in 2020

About ICICI Home Finance Limited


ICICI Home Finance Company Limited is one of the leaders in the Indian mortgage finance and realty space. Part of the ICICI Group, they have been driving innovation and growth in this sector. Their vision, as a growing housing finance company is to make the dream of owning a new home come true, for millions of Indians. Their range of innovative products, from different type of home loans to property related services will help meet these dreams.

Its business is spread into various areas like:

1) Home Loans

2) Loan against Property

3) Fixed Deposits

4) Retail Property Services(Home Search)

5) Corporate Property Services

6) Structured Finance Group

7) Construction Finance.

ICICI Home Finance Fixed Deposit Scheme Details


1) ICICI Home Finance FD’s comes with 12 months to 120 month tenure.

2) This FD scheme, offer cumulative and non cumulative options. In cumulative option, the interest would be paid on maturity. In non cumulative option, interest would be paid monthly, quarterly and yearly based on the option chosen.

3) You can deposit a minimum of Rs 10,000 in this FD scheme.

4) Interest rates are ranging between 6.95% to 7.8% for general category.  The yield works out to be up to 11.39% for a 10 year cumulative FD Scheme.

5) Senior Citizens and ICICI Group employees would get 0.25% higher interest rates.

6) These interest rates are effective from 23rd March, 2020.

7) You can open ICICI Home Finance Fixed Deposit Online.

Interest Rates on ICICI Home Finance Fixed Deposits in 2020


Here are the details of interest rates for general category. Senior Citizens and ICICI Group employees would get 0.25% extra rates.

ICICI Home Finance FD Interest Rates in 2020-Regular Schemes

ICICI Home Finance FD Interest Rates in 2020-Special Schemes

 

Who is eligible to open a ICICI Home Finance Fixed Deposit?


The following are eligible to open this FD.

1) Resident Indian citizen

2) Hindu Undivided Family (HUF)

3) Sole proprietorships

4) Partnership firms

5) Companies including group companies

6) Clubs, associations, and societies

7) Family trusts

8) NRI’s can open this FD scheme only for specific tenure.

How to Open ICICI Home Finance Fixed Deposit Online?


You can visit ICICI Home Finance FD Online link and open the FD scheme.

What documents are required to open ICICI Home Finance Fixed Deposit Scheme?


You need to submit Photo + PAN + Address proof documents. Below are the some of the address proof documents that can be submitted.

1) Voter’s Identity Card

2) Birth certificate issued by the competent authority

3) Voter’s Identity Card

4) Passport

5) PAN card

6) Aadhaar Card

7) Any other document acceptable to the Company

You can refer ICICI home finance website for complete list of documents.

Why to invest in this FD scheme?


Here are some positive factors.

1) ICICI Home Finance is part of ICICI Group and is trusted brand.

2)  You can invest in this FD scheme with a minimum of Rs 10,000 and get higher interest rates up to 7.9% for regular investors and up to 8.15% for Senior Citizens and get high yield upto 11.39% (10 years Cumulative FD Scheme offers 11.39% Yield)

3) This FD has a good credit rating of FAAA/Stable from Crisil, MAAA/Stable by ICRA and AAA/Stable by CARE, which indicates the highest safety of the investment.

4) You can open this FD online.

Why NOT to invest in this FD scheme?


Here are some negative points.

1) NBFC sector is undergoing a crisis in the last 1.5 year and your investment could high risk.

2) Corporate FDs does not offer any security. In case of company gets windup for some reason, FD investors would get preference like any other creditors and repayment would happen in normal process. There would not be any preference given to FD investors.

3) Premature withdrawal rules make it unattractive.

Some of the FAQs about this FD Scheme


1) How can I calculate the interest amount?

You can visit ICICI HFC Interest Rates Page where you would know the interest rates based on specific tenure which is updated regularly.

2) What is the ICICI Home Finance Fixed Deposit Rating?

If you are thinking “is ICICI Home Finance safe for FD”, you need to check the FD credit rating that can talk about company fundamentals. Crisil have rated these fixed deposits as “FAAA/Stable Rating”, ICRA as “MAAA (Stable) rating” and “AAA/Stable” by CARE, which indicates the highest degree of safety for the payment of interest and repayment of capital.

3) How the Interest received on these FDs is taxed?

ICICI Home Finance would deduct TDS on interest exceeding Rs 5,000 per annum. However, one need to calculate total interest received and pay income tax based on the income tax slab applicable to them in that year.

4) Can I take a premature withdrawal of my FD?

One can take a premature withdrawal only after 3 months from the date of FD or from the renewal of deposit.

If you wish to break the FD between 3 to 6 months after opening FD, you would get 4% p.a. interest.

If you wish to break FD after 6 months of opening FD but before the maturity date, you would get 2% lower interest rate.

If you wish to break FD after 12 months of opening FD but before the maturity date, you would get 1% lower interest rate.

Premature termination of ICICI Home Finance FD is allowed in case of death of the depositor.

5) When the interest payment would be done for non cumulative deposits?

In case of non cumulative deposits, interest would be paid on the last day of the month or quarter or half year or year based on the scheme and option chosen.

6) Can we submit Form-15G or Form-15H?

Yes. Individuals can submit a form 15G or 15H to ICICI Home Finance to not to deduct TDS on their FD interest.

7) In an emergency, can I get a loan against my FD?

Yes, but after 3 months from the date of opening FD which would be at the discretion of the company. One can request for the loan on this FD which would be up to 75% of the FD amount. The interest rate would be 2% higher than the FD interest rate on such loan.

8) Can NRI’s invest in this FD Scheme?

Yes. NRI’s can invest in this Fixed Deposit Scheme. Deposits would be accepted for a maximum period of 3 years. Interest and maturity amount would go to NRO account only.

9) If I am an existing customer of ICICI Home Finance, would I get any extra interest?

No. They would not get any extra FD interest.

10) What are the ICICI Home Finance Fixed Deposit toll free number or customer care details?

You can reach at any of the following details for queries or complaints.

i) You can write to them at customer.care@icicihfc.com

ii) New customers can reach them at 1800 267 4455 existing customers can call them at 1860 120 7777 customer care numbers.

You may like: Bajaj Finance FD Schemes – Should you invest?

Should you invest in ICICI Home Finance FD Scheme in 2020?


ICICI Home Finance is part of ICICI Group which is a trusted brand. Its FDs have good credit rating from , Crisil, CARE and ICRA. It offers highest interest rates where yield comes up to 11.39%. One should consider the NBFC crisis going in the last 1.5 year. FD’s does not offer any security the way secured NCDs offer to some extent.  If you are a high risk investor and willing to consider these risks, you can invest in this FD Scheme and enjoy high interest rates. If you are a low risk investor, stay away from such FD schemes.

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Suresh KP

ICICI Home Finance Fixed Deposit Scheme 2020 Review

Suresh KP

14 comments

  • Ratan K

    I have recently invested for 10 year fd in Icici HFC cos the rate of interest is too low in Icici bank at 6% , is it safe to assume that till Icici HFC is a subsidiary of Icici bank the fd is safer , incase if there is a change in the ownership I can go and premature the fd or is my thinking wrong . I also think a lot of people would be thinking exactly like me but is it wrong to assume that cos Icici will never let its brand name get spoilt ! Can you help me with my query , thanks in advance

    • Hello Ratan, You made certain assumptions, hence let me comment 1) This is subsidiary of ICICI Bank. Yes, but ICICI Bank can always sell its stake and ownership can change 2) Is it safe? After NBFC crisis started in the last 1.5 years, nothing is safe in NBFC world. One need to track such investments regularly 3) Pre-mature withdrawal, yes as of now it is possible. But company can always tweek the rules and in future if there is problem, don’t think you can do pre-mature withdrawal and come out. If everyone would think same way, company might not honor such premature withdrawals. 4) Is it safe to invest for 10 years period, I would say NO. I would always advice investors of company FDs or NCDs to invest for short to medium term of 1 to 5 years. We don’t know what would happen in 10 years period, hence this precaution.

      • Ratan K

        Thanks Suresh ji for a prompt response …You missed you the part where i HFC is 100% subsidiary of I Bank and hence as long as the ownership doesnt change it is safer cos Icici will never let its brand image spoil. Can you pls throw some light on this line of thinking

      • Ashok

        HFC s are now regulated by RBI, so expect some discipline, ICICI HFC invests only in real estate so there is scope for refund after sale of assets mortgaged and real estate is already down so appreciation is expected in long term, considering these risks FD is relatively Safe. Better distribute some in Bajaj Fin and HDFC both these group too are safe compared to Pure HFC Mahindra, Shriram transport, Muthoot etc.

        However there is another safer option FD in IDFC First bank fetches 7.5%, after the way RBI rescued Yes Bank it is safe to assume that FD is IDFC First Bank would be safe, even Yes Bank FD is 7.5 % Banks are safer compared to NBFC

        • Ratan K

          Thanks a lot for your view , highly appreciated , You are right about distributing FDs in Other Hfcs as well and your point is well received . The problem is i have already invested for 10 years in icici HFC and i was wondering should i go and premature but now as you mentioned that Hfcs are regulated by RBI its really a sigh of relief .

  • Tushar Shah

    1] Is it an Idle time to go ahead with Lumpsum Investments in Mutual Funds?? If yes, do advise and guide us, with few selected Fund Portfolio.

    2] Have also invested quite a bit in Equity Savings Mutual Fund Scheme as well as Balanced Fund..How you visualize them and their returns in Future?

    • Tushar, 1) Since markets have taken beating in the last few weeks, it is good to invest lumpsum in mutual funds now. You can select largecap funds and balanced funds to start with. Here is the link where you can pick-up some funds from these categories.

      2) Regd your second query, no one in this world can predict future returns from any mutual fund scheme. We should pick-up right mutual funds through SIP or invest lumpsum when stock markets are taking beating to get good returns. One can expect 12% to 15% annualised returns if one can invest for 8-10 years though not guaranteed

  • Rakesh sarma

    Thank you for your valuable reply sir,

    Pls give me suggestion, in my portfolio, I have 4 Axis mutual funds.. its good to go or need to change

    Axis Focused 25 Fund – Direct Plan
    Axis Midcap Fund – Direct Plan
    Axis Bluechip Fund – Direct Plan
    Axis Nifty 100 Index Fund – Direct Plan

    The above-mentioned funds are Rank level 1 in their category, in that way I selected.. so, kindly suggest me to for alternative funds for this, so that I can diversify in different AMC’s.

    Waiting for your Favorable Response.

    Regards,
    Rakesh

    • I am not saying you should not have Axis Funds. My view is not to have higher exposure to one single AMC. Among the the 4 funds, you may have two funds and you can have another two funds from another AMC.

  • RAJOLU RAMAM

    It is simply fooling the people. Announcing an interest rate of 11.39%, it cannot attract the deposits. Just keep the deposit for 10 years and forget or die, you will get 11.39% at the end. God alone knows whether the bank survives. The ratings of our institutions are changing with in a week from AAA to D. Who believes these people. Those days have gone, the people dont rush to deposit. No person deposits their hard earned money. Only money earned fraudulently can be deposited.

    • Hello Ramam, I don’t think they are fooling investors. They are offering 1 year to 10 years FDs and cumulative 10 years FD has yield of 11.39%. Company FD are high risk as indicated in our article. 10 Years tenure is even more risky. I echo on your comment that company credit ratings are not guaranteed for future. These can change any time without notice. Investors need to consider all these risk factors indicated in the article and take a call before investing in such FDs.

  • Rakesh sarma

    Hi Suresh,

    I am invested in the following MF’s in SIP method. Can you please advise if its good to go or need to add or change any funds.

    I have a plan to change Hdfc small-cap to SBI small-cap fund. and L&T India Value fund to Axis Bluechip fund. kindly advise. Also, I have a doubt.. here my most MF’s are from Axis MF’s .. so kindly explain I can go for same AMC or different AMC’s.

    Axis Focused 25 Fund – Direct Plan (Growth) – 5000

    L&T India Value Fund – Direct Plan(Growth) – 5000

    Axis Midcap Fund – Direct Plan (Growth) – 5000

    Mirae Asset Hybrid Equity Fund – Direct Plan – 5000

    HDFC Small Cap Fund – Direct Plan – 5000

    Axis Nifty 100 Index Fund – Direct Plan – 5000

    GoldBees (Nippon india) – 5000

    please advise

    thank you
    Rakesh.

    • Hello Rakesh, Few comments 1) You plan to change to new smallcap fund and blue chip fund is good. 2) Try to avoid your portfolio going into 1 AMC funds 3) Funds indicated by you are good except for Gold BEES. I would advice you to invest in sovereign gold bonds where you would get interest + your maturity value would be equal to gold value during that time.

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