NEW ICICI 5.85% Savings Product

exel1966

Have just received an E-mail from ICICI advising of this 6 month term fixed deposit for current ICICI HiSave account holders. Read on :-

Looks if it would be worth moving some money over, however with a possible base rate increase due next month (and possibly further increases within the 6 months) it may not seem as attractive as first appears. Having said that ICICI do not have to increase their rates if the base rate rises.

Full T&C's here :- http://www.icicibank.co.uk/hisave_terms_condition.html
See Section II after point 23.

Dear HiSAVER,


This festive season, here is one more reason to rejoice.

For the last few months, you have seen your money grow at the HiSAVE Savings Account rate. Now you can enjoy an even higher interest rate of 5.85% (AER/Gross) for a fixed tenure of 6 months through our HiSAVE Term Deposit. This privilege is designed exclusively for HiSAVERs only.


How is it different?

The HiSAVE Term Deposit is actually UNFIXED. You may easily withdraw your money by calling us, or by writing to us online. Your request will be processed in 3-4 working days.

Would I lose out on early withdrawals?

Even if you require your money before maturity of the deposit, you would get the HiSAVE Savings Account gross rate, applicable at the time of opening your HiSAVE Term Deposit.

How to apply?

All you need to do is write to your account manager from the logged in section of your HiSAVE Savings Account. You may also call us on 08081 31 41 51, informing us of the amount you want to move into a
HiSAVE Term Deposit.



For updated terms and conditions please check our website https://www.icicibank.co.uk or call on 08081 31 41 51 for more details.

Warm Regards,


HiSAVE Team



Disclaimer:
- We may change the rate anytime for new accounts without prior notice. This communication being sent by ICICI Group (ICICI or its subsidiaries and associated companies including ICICI Bank) is privileged and confidential, and is directed to and for the use of the addressee only. If this message reaches anyone other than the intended recipient, we request the reader not to reproduce, copy, disseminate or distribute it in any manner. We further request such recipient/s to notify us immediately by a return email and delete the original message. ICICI Group does not guarantee the security of any information transmitted electronically and is not liable for the proper, timely and complete transmission thereof. Before opening any attachments, please check them for viruses and defects.

Edited to include the latest 0.25% Base Rate Increase.

Madiba_2

The slow forum meant I posted this after you did, but you hadnt posted when I clicked Submit.

It seems good, and its instant access too (effectively) so the only thing is, is the interest paid monthly? I use my ICICI for income.

daleuk_3

so would this be the highest paying fixed term rate atm?

Also, from what I understand if money is transdered out, interest is still paid on that but at the savings account rate 5.45%?

Madiba_2

Just read the T&C. Interest is paid at the end of the 6 months. So no good to me.

Seems like a good deal though.

everylittlehelps_2

excellent product. i know where my savings are going now. i just posted this on hotukdeals

empfun

It's beautiful! ICICI is legendary. Time to stash my trillions in there.

Biggles

So what is it? A Fixed Term Deposit that is, in their words, Unfixed. What's that when it's at home?

Do they mean it's a deposit account that will terminate in six months, though the investor is not obliged to keep his money there for six months?

ICICI are not, so far, answering messages and their website has become rather slow, looks like they've got lots of enquiries.

The AER is 5.65%, so it doesn't matter too much whether the interest is paid at the end of the 6/12 or monthly.

Madiba_2

Biggles wrote:

So what is it? A Fixed Term Deposit that is, in their words, Unfixed. What's that when it's at home?

Do they mean it's a deposit account that will terminate in six months, though the investor is not obliged to keep his money there for six months?

ICICI are not, so far, answering messages and their website has become rather slow, looks like they've got lots of enquiries.

The AER is 5.65%, so it doesn't matter too much whether the interest is paid at the end of the 6/12 or monthly.

Yeah they do use some funny terms at times. And their FAQ is pretty funny. I called them about FAQ46 (I think) and its such an adventure talking to an Indian person when you have a question that isnt on their list of answers.

Monthly interest is important to me, as I use it for income.

lswwong

I have just read through the relevant T&Cs for the term deposit product (look up section for T&Cs for the standard HiSave product and scroll to end of it to locate "Section II").

1. One addition (i.e. one lump sum) at account opening only. That means you cannot add more funds later.

2. The money must come from your standard HiSave account i.e. you cannot send funds directly from a third party bank account to this Term Deposit account. What this means is if you have money with a third party bank that you want to put into the term deposit account, send it first to the standard HiSave account and once your lump sum is ready and in place, then open the Term Deposit account.

3. Interest rate applicable for the term deposit product will be the rate advertised for this product on the day of account opening. So, today, ICICI is advertising 5.65% AER/Gross for this product. If one was to open the term deposit account today, that's the rate one will get. Therefore imperative that when opening this account, one checks what rate is advertised that day for this product and note accordingly. Small likelihood of the rate being less than 5.65% AER/Gross but you never know and should check to protect yourself.

4. Interests is paid at "end of tenure" i.e. at the end of the 6 month period from account opening date.

5. At time of account opening, there is an option (cannot be exercised subsequently i.e. must do so at time of account opening) to ***RENEW*** the term when it runs out. So does that mean I can ask ICICI to run the term deposit for 2 consecutive 6 month periods (making it 12 months in total) or even longer??

6. There is, unlike the standard HiSave product, no rate guarantee above the Bank of England Base rate by at least 0.25%. So the rate on the term deposit product can drop at any time during its tenure (by ICICI giving notice to the customer). WORRIED!

7. Interest rate applicable on amount withdrawn in-tenure will be gross rate of the standard HiSave product as at time of account opening. So if one was to withdraw £50 out of £150 (say) from one's term deposit account, then the £50 withdrawn would only attract 5.32% gross interests whereas the remaining £100 would still earn interests at 5.65% AER/Gross until the term deposit tenure runs out. HAVE I GOT THIS RIGHT?

Think this product might work for me as I don't need monthly interests income. May need to consider risk of interest rate dropping mid-tenure .....

tom188

Its fixed rate so the rate wont change

Madiba_2

Actually, does it say anywhere that it is a fixed rate?

It says a fixed tenure of 6 months. Thats just a fixed period of time...?

"We reserve the right to revise our interest rates from time to time without notice. . We will communicate the change in interest rate to you by posting it on the Site and informing the Help Desk within three working days."

Crafty Indians?