Opening an OD (OverDraft) against ICICI Bank FD

Though we can break Fixed Deposits to get money always, we can also use ICICI Bank OD’s feature to get the money we need without breaking our FD.



As soon as you create an OD using the above steps, a Current account will be created against your FD and it will be listed in iMobile app then you need to transfer the amount from your Current account to Savings account. If you create an OD on Sunday for some reasons it won’t work (You may need to wait a day or till a working day to get the money transferred)

Pros of ICICI Bank’s OD against FD

  • Interest is charged at 2% over the FD Balance
  • No prepayment charges
  • Money is available instantly – ( You can only transfer via iMobile to your savings account not sure why it can’t be done via NetBanking)

Cons of ICICI Bank’s OD against FD

  • OverDraft can’t be closed instantly like HDFC Bank
  • You may need to visit the branch to close the OD account
  • And if a linen is marked on the Deposit, then you can’t withdraw the deposit even for half the amount, even if you have never used our OD Balance
  • You need to login into your iMobile app to see what’s your OD Balance

Though OD is definitely a good feature, the problem is to close a OD we need to visit the nearest ICICI Bank branch and fill up the form. In the age of Internet Banking, this is a feature that is must have for every bank unfortunately it’s not the case with ICICI Bank as of now.

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