ICICI hisave - Taking out early

Baldlygo

Two months ago I transferred funds from an ICICI regular account to a Hisave account for a years term. My circumstances have changed unexpectedly and I now need to take this out before the end of the year.. I phoned ICICI and was told this will not be a problem but the interest will be 5.something % It was difficult understanding the accent and so I did not try and clarify this over the phone.

Please can anyone explain simply what happens when one takes out money early. To what does the 5% refer? Does it mean that I will get 5% on my money for all the time it was in the Hisave? (so the high interest paid already will be taken back?).

Sorry to be so ignorant on such matters but if my understanding is correct then would it be better to take it all out asap and return it to my regular account where I can get 6.something % interest until I need it?

DeepSporran

The 5% (assuming it is 5%) will be substituted for the original percentage that this fixed rate account would have paid if you had kept the money in for the full 12 month term. So you you would be better to get the money out as soon as possible and stick it into a better paying account, rather than waiting for a few months.

When you refer to the 'high interest paid already', have you actually received anything ? Unless the interest was paid monthly, you won't have received anything yet. If you have received anything, they would recalculate what the lower interest would have been, and make a deduction when they repay you, to claw back what they have 'overpaid'.

I don't have an ICICI account and I can't tell what the T&Cs were when you opened your account, so my comments just reflect the way these things normally work. You'd need to check on the T&Cs you agreed to 2 months ago.

Baldlygo

Thanks for that info DeepSporran. I will cancel the Term deposit asap. by writing to the Account manager.

exel1966

THIS will tell you the rate applicable to your account.