ICICI fixed rate deposit

Biggles

An email from ICICI this afternoon announced a 1-year fixed rate deposit a/c of 6.30% and a 6-month fixed-rate deposit of 6.24%.

Paul_Herring

Didn't their 'term deposit' accounts quickly become uncompetative due to rate rises last time they tried them, because they didn't pass on rises mid-term?

Madiba_2

Yeah - I reckon they do a finger in air job and if a rate increase is on the cards, they offer this fixed term thing.

They do a 6 month one though. But for the sake of .2%, is it worth it? I much rather having instant access.

Pheasant76

So, from what you say it doesn't seem a good idea? My partner and I have a joint ICICI account and I was thinking about the term deposit for me on my own when I saw the e-mail this morning but perhaps not now. Can I have a second ICICI account just for me (a normal one, not term deposit)?

Paul_Herring

So, from what you say it doesn't seem a good idea?

It's not that much of a bad idea. However the thinking behind my post (and probably Madiba's) goes something like this:

1) You put money in there for 6 months at 6.24%.
2) If you withdraw it early, the rate drops to 6.05%(?)
3) In the 6 month timeframe, BOE increases rates by .25%
4) ICICI increase their instance access rate by .25% to 6.30%, but leave the term deposit intact at 6.24%

Repeat similar scenario with the 12 month, and possibly add in (a much less likely) 2nd .25% increase.

Granted #3 isn't a given, but given the above thought process, ICICI clearly think it is.

Can I have a second ICICI account just for me

WHen they first opened they indicated that people were allowed to have an individual account, and participate in a joint account, but they ususally screwed it up somehow. I'm unsure what their terms are these days.