ICICI Bank i wish – a flexible recurring deposit

by Manikaran Singal on April 4, 2013 Total Views: (1082)

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ICICI bank I wish is a very interesting recurring deposit product of ICICI bank available for its saving bank account customers who use internet banking.  The interesting part of this product is you can create and manage your short and long term goals (in terms of money you want to accumulate) with these savings and also can share it with your friends and family on Facebook. By sharing it with others you can also ask for their contribution in this deposit to help you achieve your goal or fulfil your wish faster.

The uniqueness of this recurring deposit product is in the feature of flexibility. Unlike regular recurring deposits , in this flexible product there is no compulsion on the part of depositor to make a month on month contribution into it. You can also make multiple deposits in a particular month. This product can only be invested through internet banking. In this article I will be covering the basic details of “icici bank i wish” and try to figure out the pros and cons of this.

i wish

Basic Features of ICICI bank I Wish

 

This is a recurring deposit product with a feature of flexibility in deposit. To bring excitement in your savings, it has option of Creating and Naming a goal. For e.g. you may want to buy a camera costing Rs 30000/- after a year. You can name your goal as “Camera”, tenure as 12 months and after adjusting to the interest rates, portal will calculate how much you need to save per month towards that goal. The flexible feature of ICICI I wish recurring deposit allows you either to put a standing instruction for regular deposits or transfer the funds as and when you have towards this goal. You may also share your Goal/Wish on your Facebook account and ask for contribution into this to your friends and family. Other features are as below:

i bank i wish

Should you invest in ICICI Bank I Wish?

Well, structure wise it’s definitely a unique product. It is a fact that when you map your savings towards a goal, you become very much disciplined in your approach. And nothing can match the excitement of achieving the goal. The flexible aspect of this recurring deposit is also very attractive. But the major drawback of ICICI I wish is that this is a recurring deposit product which by its basic nature is taxable. Whatever you earn out of this saving will be added in your income and taxed as per your slab. I mean if the intention is to save for a short term goal, why not to use alternate options like liquid/short term mutual funds. For short term goals these mutual funds may not be comparable on taxation aspect (due to changes announced in budet 2013) but these funds will definitely provide you with better returns than recurring deposits. (read: bank deposits vs debt funds)

Secondly, the penalty charges on pre closure of the account are also a negative factor. This issue can also be answered by investing in liquid/ultra short term mutual funds as there are no penal charges of withdrawing the amount.

ICICI bank I wish can be a perfect product to inculcate discipline of savings  among your Kids especially major kids (Above 18 years of age). They can be encouraged to save part of the pocket money for their goals (of going on vacation or buying costly gadgets) from their own pocket money and once that benchmark is achieved you can supplement that savings with your contribution. This way you can teach them the advantage of savings by allocating it to a particular goal and also it will not burden you with more of tax payments. As whatever earnings made on the savings will be treated as your Child income only, also the gift made by you to him/her will not attract any gift tax. (Read : tax planning tips)

 What are your views on icici bank I wish recurring deposit? Does the flexible feature attract you?

Manikaran Singal

Founder and Chief Financial Planner at Good Moneying Financial Solutions
He’s MBA ( Finance) gold medalist, a CERTIFIED FINANCIAL PLANNER and SEBI Registered Investment adviser. An ex banker , having a decade long experience in financial services industry he manages clients across the globe. He’s an active member of Financial Planners’ Guild India ( An association of practicing SEBI registered Investment advisers). He's very passionate in the financial planning space and with a view to spread financial literacy among masses he writes blog articles and also contributes and quoted in various media publications like Money control, Indian express, Business Bhaskar, Dainik Bhaskar, Money mantra magazine etc. He also delivers training on Various personal finance topics to various corporate houses. You may get in touch with him at info@goodmoneying.com

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{ 19 comments… read them below or add one }

Gaurav April 8, 2013 at 4:29 am

Hi, In my view “i-Wish” doesn’t cover the fundamental of disciplined saving . It is not better than saving through regular RD. Anyways some minor flexibility it does provides but as far as I think it is of no use. On the other short term saving instruments I am still not sure about the use of MF over Debt deposits.

Reply

Manikaran Singal April 10, 2013 at 9:34 am

Gaurav, this is a normal RD product with flexibility in deposits. Its upto the user how he wants to use it…through regular deposits or irregular. I have shared a link in the article where you can see the comparison between debt mutual funds and bank deposits. You can have a look at that.

Reply

sid May 1, 2013 at 5:03 am

Hi,

just wanted to know, on goal completion can we transfer the amount to the linked savings account or is it a physical procedure like getting a cheque or something???
Good article.. Thanks for sharing!

Reply

Manikaran Singal May 7, 2013 at 5:41 am

Thanks Sid.
On goal or tenure of RD completion you can transfer the amount in your linked savings account.

Reply

Chetan August 2, 2013 at 1:20 am

Nice article. Thanks for sharing..

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Nas August 29, 2013 at 3:55 pm

I want to know that suppose let it be I wish my goal amount to 50,000.. could I save more than this 50,000 in the same goal?

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Pradeep August 31, 2013 at 3:10 pm

As per bank terms its not possible,but you can create another Goal.Once goal amount is reached you cant add extra amount to it.Wait for tenure to complete and en-cash.

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Nas September 3, 2013 at 3:53 pm

Thanks Pradeep. It was a great help! anyway another simple doubt. What if I could not reach my goal amount in the specified tenure?

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Thiagarajan December 24, 2013 at 9:25 am

Hi,

How long will it take for the goal amount be credited to the account on closing or on pre-closure?

Reply

Manikaran Singal December 27, 2013 at 12:47 pm

As it is a normal recurring deposit product, so i think it should not take more than 24 hrs. Infact 24 hrs is also a long time for this.

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shruti December 26, 2013 at 10:41 am

does anyone has any experience of hidden charges\deductions?
As I see in the site itself its written, “On pre-mature withdrawal of the deposit:
– interest will be calculated at the rate applicable for the period the deposit has actually remained with ICICI Bank”

I am afraid by the words ” rate applicable”.
Does it mean if the rate is 7.75 for 6 months, on premature withdrawl at 3 months we get prin +7.75 % for 3 months?
Or is it at icici’s decretion :S

Reply

Manikaran Singal December 27, 2013 at 12:53 pm

Shruti…there’s nothing hidden, but you have to read everything :)
rate applicable is the rate for the tenure for which deposit has remained with the bank. If for 6 months deposit rate is 7.75% and for 1 year rate is 10%, and you kept the money for 6 months only, then you will get 7.75% p.a for 6 months, means effectively 3.875%. Rates mentioned are always on annual basis.

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Madhan January 25, 2014 at 9:10 am

A very good Article!!

Is the amount taxable?

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Manikaran Singal January 25, 2014 at 1:45 pm

Yes, it is. ICICI Bank I wish is taxable like a normal recurring deposit

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mady March 6, 2014 at 12:34 pm

is that possible to take loan from the amount?

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Ankush March 10, 2014 at 12:33 pm

What is process of after completion of tenure.
Will the amount automatically transferred to my account or I need to manually request for it in the ICICI bank branch?

Reply

Manikaran Singal March 18, 2014 at 8:35 am

Ankush you have to request for the closure. You can do it online too

Reply

S Ahuja November 10, 2014 at 10:20 am

Hi,

Suppose I deposit 10,000 in the starting of first months and 20,000 in the starting of 2nd month. Tenure period is of 12 months. So, will I be getting the interest of 10,000 for 12 months and on 20,000 for 11 months?

Goal amount is the maturity amount or the principal amount? If it is the maturity amount, will we be notified the pending amount to be deposited every month to reach the goal?

Reply

Manikaran Singal November 13, 2014 at 4:59 am

Mr Ahuja

I have not used this product personally, but i can answer this question based on how recurring deposit works.
Yes, you will get interest of 12 months on Rs 10k and for 11 months on 20k. Bank will pay interest for the complete tenure they have used your money given for.
I guess, goal amount is the maturity amount (i.e. Principal Plus interest).
Mr Ahuja , If you are really serious on investing in this product, then you may raise such queries to icici bank customer care or even visit any Branch. and share your experience and feedback of the product here for the benefit of other readers.

Reply

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