ICICI Bank Short Term FD

What is an ICICI Bank Short Term FD?

ICICI Bank Short Term FD is a fixed deposit product that allows you to keep surplus funds for shorter durations with assured returns, making it suitable for meeting near-term financial goals or managing temporary cash balances. ICICI Bank provides short-term FD with tenures from 7 days to less than 1 year, with interest rates that vary across these durations and provide extra benefits for senior citizens over general retail customers. These deposits are designed for retail customers with a minimum deposit amount and let you choose between receiving interest periodically or accumulating returns at maturity, subject to relevant tax rules and the bank’s FD interest rates.

ICICI Bank Short Term FD Interest Rates

Here’s the ICICI Bank Short Term FD Interest Rates table based on official published rates from ICICI Bank’s own site and associated official rate pages, covering tenures from 7 days to less than 1 year for both the general public and senior citizens (senior citizen rates include the additional benefit over regular rates).

*ICICI Bank Short Term FD rates w.e.f. 30 December, 2025

Key Features of ICICI Bank Short Term FD

ICICI Bank Short Term Fixed Deposit provides benefits created to assist short-term savings, as detailed on the bank’s official website:

• Short Tenure Flexibility: You are able to invest for spans beginning from 7 days up to 1 year, aligning with short-term plans.
• Minimum Deposit Requirement: A Retail FD can be started with at least ₹10,000 as the deposit.
• Assured and Fixed Returns: The interest percentage is determined at booking and stays the same throughout the tenure.
• Premature Withdrawal Facility: Early closure can be done, with a penalty as per bank policy.
• Loan or Overdraft Against FD: The bank offers a loan or overdraft option of up to 90% of the FD amount, enabling use without closing the deposit.
• Sweep-In and Sweep-Out Option: Under eligible schemes, ICICI Bank Sweep-in FD allows surplus savings account balances to be automatically converted into FDs and reversed when funds are required.
• Auto-Renewal Facility: On maturity, the FD may be automatically renewed if you selected this for the same tenure at current rates.
• Nomination Facility: You may register a nominee to ensure a smooth transfer of funds.

How to Invest in an ICICI Bank Short Term FD

You can open an ICICI Bank Short Term Fixed Deposit online with ease or by visiting a local branch. Follow these steps:

Online Method

You can start with your Internet Banking or iMobile app access following below:

• FD Booking: Log in and select Fixed Deposit.
• Choose Tenure & Amount: Pick your deposit tenure, amount, and interest payout option.
• Confirm Details: Verify all information.
• Submit Request: Proceed to create the FD.
• Digital Receipt Issuance: Receive an electronic confirmation instantly.
• Account Funding: Funds are debited automatically from your linked account.

Offline Method

Open the FD by visiting a bank branch with the required documents ready:

• Branch Visit: Approach your nearest ICICI Bank branch.
• Application Submission: Fill and submit the FD form.
• KYC Verification: Show your ID and finish the verification.
• Deposit Funding: Pay with a cheque or a transfer.
• Confirm Details: Check the length of the loan and the payment amount.
• Physical Receipt Issuance: Collect your FD receipt.

Eligibility Criteria for ICICI Bank Short Term FD

To open an ICICI Bank Short Term Fixed Deposit, you must meet the following criteria:

• Resident Investor Eligibility: Offered to resident Indian citizens and other qualifying entities.
• Savings or Current Account Requirement: An active savings or current account adequately holding a sufficient balance is needed to fund the FD.
• Minimum Age Criteria: Applicants must generally be 18 years or older to open an FD.
• Minor FD Through Guardian: Minors can invest via a guardian who operates the account.
• Mandatory KYC Compliance: Submission and verification of acceptable KYC documents is mandatory.
• Minimum Deposit Threshold: FDs begin at ₹10,000, with lower minor accounts.
• Senior and Super Senior Classification: Customers aged 60+ and 80+ obtain higher interest rates.

Taxation of ICICI Bank Short Term FD

Interest earned on an ICICI Bank Short Term Fixed Deposit is treated as “Income from Other Sources” and must be included in your annual taxable income under the Income Tax Act. Your bank will apply Tax Deducted at Source (TDS) on FD interest when the combined interest from all your deposits during a financial year crosses defined limits, usually ₹50,000 for general customers and ₹1,00,000 for senior citizens, prior to crediting to your account.

TDS is applied at the prescribed rate and is adjusted as advance tax on your final tax liability. If your total income is below the basic exemption limit, you can submit the Form 15G or Form 15H to your bank to avoid TDS on FD interest. Nevertheless, the interest is taxable and should be reported on your income tax return accordingly.

Key Takeaways

ICICI Bank Short Term FDs provide a low-risk investment choice for periods such as 7 days to 1 year, delivering assured returns with flexible liquidity. They are suitable for parking surplus funds or meeting near-term goals. Interest rates are up to 6.25% p.a. for general customers and 6.75% p.a. for senior citizens. Prior to investing, it is sensible to review interest rates and features across banks to select the option that suits your financial needs.