ICICI FDXtra is an innovative fixed deposit, recurring deposit scheme by ICICI Bank. FDXtra offers something extra along with fixed deposit returns. That is the reason word extra is attached to this product. You can get free term plan, mutual fund SIP or fixed income along with this product as an added benefit. As per ICICI bank, it is a unique FD scheme that provides security as well as assured returns.
So, How ICICI FDXtra works? How you can invest in ICICI FDXtra? Which products are proposed under FDXtra? Should you invest in ICICI FDXtra? Let’s try to get answers to these questions.
Also Read – Top 5 Best Investment Ideas for 2019
What is ICICI FDXtra?
ICICI FD Xtra is a new range of fixed deposit and recurring deposit scheme that offers extra benefits to the customer. There are multiple fixed deposit products under this scheme. All these products are linked with various financial goals of customers. This includes life insurance coverage via term plan, option of investing in the stock market via Mutual Fund SIP or retirement goals such as higher education, retirement corpus, regular income etc. There are three different products under this scheme.
ICICI Bank FDXtra – FD Life
The first product associated with this scheme is FD Life. This product is a combo of investment and life insurance. The features associated with this product are given below.
- FD Life is offered to customers within age group of 18 to 50 years.
- This scheme offer dual benefits of investment growth as well as free term life insurance.
- The free term life insurance coverage is up to 3 Lakh and available only on opening of FD of 3 Lakh with minimum tenure of two years.
- The complimentary insurance coverage is only for one year. Customer has option to renew insurance next year.
ICICI Bank FDXtra – FD Invest
The second product associated with this scheme is FD Invest. It is pure investment product. The key features of FD Invest are given below.
- FD Invest help customer to invest the interest earned on FDs in monthly Systematic Investment Plans (SIPs) of a mutual fund.
- SIP would be of customer choice but from ICICI Prudential Asset Management Company only.
- Minimum investment amount in FD Invest is 2 Lakh for minimum tenure of 1 year.
- FD Capital amount is protected and only interest amount will be invested in the SIP of mutual funds.
ICICI Bank FDXtra – FD Income
The third product associated with this scheme is FD Income. FD income is like regular income plan. The key features associated with FD Income are given below.
- FD Income is available in the form of FDs and RDs.
- The maturity amount of fixed deposit can be received as a monthly income for a tenure of customer choice.
- Alternatively, customer can choose to receive 30% of the maturity amount as lump sum and the remaining 70% as a monthly income.
- Maximum tenure for all term deposits, including investment phase and payout phase, is 10 years.
How to apply ICICI Bank FD Xtra option for FD Life, FD Invest and FD Income schemes?
To apply for FD Xtra deposits, customer can visit their nearest ICICI Bank branch. Additionally, they can apply for FD Income through internet banking.
Should you invest in ICICI FDXtra (FD Life, FD Invest or FD Income)?
ICICI Bank FDXTRA is unique product in fixed deposit segment. However, before investing in this plan few important points of consideration are given below.
ICICI FDXTRA – FD Life
- The cover is free only for the first year and may be renewed by the FD holder next year onwards.
- The cover is on a minimum deposit of Rs 3 lakh and for a minimum tenure of 2 years. This means FD Life comes with lock in period of 2 years.
- The life insurance coverage of 3 Lakh is very low and may not be suitable for your requirement.
- In case of Partial/Premature withdrawal of deposit, the free life cover offered to customers will be withdrawn from the date of partial/premature withdrawal.
ICICI FDXTRA – FD Invest
- FD Invest allows you to invest in the mutual fund scheme of ICICI prudential asset management only.
- Minimum Fixed deposit amount of 2 Lakh for 1 year is required.
ICICI FDXTRA – FD Income
- FD Income can act as an alternative of pension scheme.
- Partial withdrawal will not be permitted under this plan.
- You should check other Monthly income schemes before making an investment.
I recommend comparing the interest rate of other banks before investing in FD Life, FD Invest or FD Income. Free insurance or income scheme should not be the only base of investing in FD Xtra.
I hope you have got a fair understanding of ICICI FD Xtra.
Do share your views in the comment section given below.
For more information visit ICICI Bank website.