The private sector lender ICICI Bank on Wednesday announced the roll out of its new range of fixed deposits that will enable investors to invest in mutual fund SIPs. The new offering by ICICI Bank referred to as 'FD Invest' will channelize interest earned on fixed deposits into monthly Systematic Investment Plans (SIP plans) of mutual funds chosen by customers from the company's AMC, ICICI Prudential Asset Management Company.
Under the FD Invest scheme, customers needs to maintain a fixed deposit of minimum Rs. 2,00,000 with a term of at least one year, principal of the FD account is kept intact and only the interest earned on it is put in mutual funds.
"With the prevailing volatility in financial markets, we see a renewed interest by customers to invest in fixed and recurring deposits as they offer a combination of attractive interest rates, liquidity, safety of capital and assured returns," Pranav Mishra, head - retail liabilities group, ICICI Bank, said.
Another fixed deposit offering of the bank 'FD Life' offers dual advantage in the form of investment growth through fixed deposit plus security by offering term life insurance for a period of one for the FD account holder for free.
Against the fixed deposit account, the bank also offers an instant platinum credit card without any annual or joining fees.