Did anyone use the facility of ICICI bank money multiplier account? Till now my account was linked to icici trading account so couldn’t use this facility.

For those who dont know about this facility here is the link. I remember that earlier there was same kind of facility where in if you activate this, they used to auto sweep your money in/out from linked FD based on the minimum balance of 10k.

Now my question is they have removed auto sweep facility to move money from your savings account to FD when the balance is above 15k, but the reverse is still there. Now we need to create FD in multiples of 5K to avail this facility. Are there any problems in using this facility, other than service, such as penalty on breaking FD or any other kind of issues.

If anyone used it and faced any issues please let us know. That will help me and others to be aware of those issues and avoid, if using this facility.

23 Answers

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1 Anand February 23, 2011 at 10:21 am

I have opened one recently. The payout frequency of interest is annual and you can’t change it. The entire balance is available to you through cheque and ATM. I have opted for 590 days which gives you 9% interest. If the interest in the year exceeds 10,000 then the bank will cut some tax before giving you the interest.


2 Atul February 23, 2011 at 3:03 pm

Hi Jayaprakash,

I have been using this facility for the last 10 years and there is no penalty for breaking the FDs often.




3 JayaprakashReddy February 23, 2011 at 3:20 pm

Hi Atul,

That’s really good motivating point.


4 JayaprakashReddy February 23, 2011 at 3:24 pm

If it is broken before maturity, then do they pay any interest for the period you hold and what is that interest rate?

Say, I choose 1yr option and at 8% interest rate, then if I broke it after 5 months, in this case do they pay me interest for 5 months at 8% rate or any other lesser rate which is applicable for that less period?

Any idea?


5 Ram February 24, 2011 at 10:40 am

Isn’t there a penalty of between 0.5% to 1.5% for premature withdrawal in FDs with ICICI? Check this link –, under the “Penalty on Pre-mature withdrawal” table.



6 JayaprakashReddy February 24, 2011 at 4:38 pm

I’ve clarified all the doubts from the bank directly. Here are the clarifications:

1. If you break it prematurely there is no penalty as these FD accounts are treated separately.

2. Even on premature withdraw they will pay the interest for the period you kept money in that FD with the same interest rate which you have chosen at the time of opening that FD.

3. Though there is no automatic transfer of money from your savings account to FD but the reverse is available. You can create FD of any amount above savings account balance of 10k in multiples of 5k, but while reverse sweep they only transfer the required money in multiples of 5k instead of breaking the full FD. Example: you have created FD of 50k, you have current balance in your account as 12k. If you try to withdraw 20k from ATM, they will transfer 20k from FD account to savings and remaining 30k will be there as is in the FD account.


7 JayaprakashReddy June 9, 2011 at 6:59 pm

Its been 4 months since I’m playing with this money multiplier facility and I observed couple of things in this and want correct my above statements from the experience I had with this facility. Also want to provide more details which I observed during this time.

All the points mentioned in the above post dated Feb 24th 2011 are based on the information I got from ICICI customer care. As usual it proved that customer care executives are ignorant about the features.

1. If you break it prematurely there is no penalty as these FD accounts are treated separately.
Correction: This is wrong. Premature withdrawl penalty is applicable for this facility as well. In ICICI if you break FD partially or completely they will calculate the penalty based on the tenure of the FD. If tenure is below 1yr then it will be 0.5% if it is more than a year than 1% and if it is more than 5yrs then 1.5%. For example you have created FD for 790 days (9.25% interest rate) and you break this FD after 31 days then your effective interest for the period you hold the FD is 4% (31days period interest rate 5% – penalty for FD tenure more than a year 1%).

2. Even on premature withdraw they will pay the interest for the period you kept money in that FD with the same interest rate which you have chosen at the time of opening that FD.
Correction: Completely wrong. Refer calculation in above point. Interest will be considered of the duration you hold the FD.

3. I said reverse sweep (FD to bank account) is multiples of 5k.
Correction: No, reverse sweep amount depends on the amount required to fill the min balance limit in bank account. If min balance is 10k and after some transaction account balance is 9890, then only reverse sweep of 10 is done. If after some reverse sweep transactions FD amount goes below 5k then they will break complete FD automatically.

After savings bank account interest is increased to 4%, I would suggest use money multiplier facility only if you want to keep the money in FD for more than 31 days and tenure of FD is less than 1yr. If tenure is more than 1yr then you should keep the FD for more than 46 days in order to get more interest (effective after penalty) than savings account interest (4%).


8 Anirban Ghosh October 11, 2011 at 1:04 pm

1. Has anyone faced any issues while withdrawing money from ATM or via cheques after enabling the Money Multiplier feature? Especially where the amount withdrawn makes it necessary for one/more of these linked FDs to be broken.

2. Will the reverse sweep also kick in if I’m doing an online transaction (e.g., NEFT transfer)?

It would be great if some of the existing users of this feature could reply.



9 JayaprakashReddy October 11, 2011 at 1:24 pm

Hi Anirban,

1. No, never faced any issue. I’ve withdrawn money from ATM and FD automatically broken after that. Never tried cheque issue with that.

2. Yes


10 Nayan Bhattacharya January 27, 2012 at 12:57 pm


1. I would like to know that I’ve the balance of 15k. Can I create one FD of 5k ?

2. Is it possible to activate or request for money multiplier activation through netbanking ?



11 ashal jauhari January 27, 2012 at 2:40 pm

Dear Nayan, yes you may create FD of 5K but be sure that you really need this facility.

Yes activation of netbanking is available through phone & netbanking.




12 AB March 17, 2012 at 11:01 pm

Hi All

I want to use this facility. Before that I would like to clear some basic queries:

1. If i set the min balance as 10,000 and I have a total of 50 K in my account. I will get an FD of 40 k, (correct me if i m wrong).

a) Now i wish to withdraw 5k through atm, my FD will remain untouched and savings balance will becom 5k?

b) WITHDRAWING 15000 : In this case, 10k will be deducted from savings and 5k from FD?
If so, will the entire 40k FD break or 35 k fd will remain ?

c) Consider case (a) i.e savings balance 5k. When i credit 10,500 to my account, what will be my savings and fd balance? Do we need to set any particular date on wich sweep takes place?

d) what are the FD tenures and interest rates available?

e) Are there any charges for using this facility?



13 JayaprakashReddy March 18, 2012 at 1:03 am

Hi Abhi,


1. You cant set minimum balance as 10k, that’s decided by bank and its same for all general savings acocunts in ICICI. Above this 10k balance you can create linked FD with remaining balance in multiples of 5k.

2. If you withdraw 5k from atm, your min balance 10k will remain as is and they will withdraw 5k from linked FD and keeps 35k FD as is.

3. If you withdraw more than 10k then same amount will be withdrawn from your FD and remaining FD amount is kept as is provided total FD is greater than 5k. If FD value falls below 5k then it is automatically broken.

4. Linked FD is not created automatically when your balance is more than 10k. You have to create linked FD in multiples of 5k with the amount more than 10k in your balance

Regular interest rates which are given on their website are applicable for the duration you keep that FD. Even if you create FD for 1yr at interest rate of 8%, but if you break that FD within a month then interest rate of 30 days tenure (5%) is applied minus 1% pre-closure charges on interest earned.

Interest rates are available here:

Hope this clears your doubt.



14 AB March 17, 2012 at 11:05 pm

One more..

Can we set any amount as minimum balance which is 10K default i guess?


15 ashal jauhari March 18, 2012 at 10:26 am

Dear AB, some banks provide freedom to set limits where as in most banks the cut off limits for such sweeping FD accounts are pre fixed.




16 AB March 18, 2012 at 1:35 pm

Thanks JP and Ashal

My first doubt is still unclear.

I want to know if I can withdraw from savings account without affecting FD or not?

As far as i understood the concept, a part of money gets converted into FD and other part gets normal savings interest.
Suppose I have 50k in my account. I want to know how much amount will goto FD? Is it decided by bank or i can decide? After FD is created, I want to keep FD unaffected as much as possible and i wish to withdraw from my savings balance only. Is this possible?


17 ashal jauhari March 19, 2012 at 1:46 am

Dear AB, is you do have a positive balance in your SB account i.e. more than minimum balance limit but less than FD cut off limit, your transactions ‘ll be honored. In case money is falling short for balance in your SB account, your FD ‘ll be re adjusted & a part of your FD money ‘ll be redeemed & ‘ll kept in the SB account.

If you do not want to touch that FD, please try to maintain the minimum balance if not more in that SB account.




18 prateek March 19, 2012 at 10:47 pm

I tried to “Apply for Money Multiplier Account” and got the following two options:

1.Special Money Multiplier Account

To earn Special Rate on your Linked Fixed Deposit, please select 390/590/790/990 days in the Tenure of Deposit (Days) option given.

2. Standard Money Multiplier Account

Tenure of Deposit :-
Tenure of Deposit :- Minimum – 1 Year, Maximum -10 years.

Does anybody know the difference between the two kinds?


19 ashal jauhari March 21, 2012 at 1:06 am

Dear Prateek, the difference lies in the interest rates offered on the 2 types of FDs.




20 prateek March 21, 2012 at 2:11 am

Hey Ashal,

Thanks for the reply. Wanted to ask what is that difference?

I checked

I didn’t find any difference. A FD of 390 days would earn same interest as 1 year 1 month. Then what interest difference are you talking about?


21 ashal jauhari March 21, 2012 at 6:43 pm

Dear Prateek, earlier there were differential rates (& a bit higher) for odd maturity FDs say 390 or 590 or 790 days. It’s only for past few months that the difference is not there. Now you have the option to go for normal or odd maturity as per your own choice. So practically there is no such difference for the sweeping FDs we are discussing.




22 Sachin September 10, 2012 at 8:46 am

Dear Ashal,
I have a salary account with icici bank,
Kindly clarify if i can use this facility as my account has Zero minimum Balance.


23 Ashal Jauhari September 10, 2012 at 9:49 am

Dear SAchin, please contact ICICI for converting your existing zero balance account to Money Multiplier account. Before converting, please do check the pros & cons of conversion.




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