Banking

Key things you need to know

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Bank FDs (fixed deposits) are one of the top risk-free investment options for depositors. Despite lowering Bank FD interest rates (less than 5 per cent in major PSU banks) it has remained one of the most favoured tools for the banks to increase deposits. To attract more deposits via bank FDs, various banks are offering some value-added advantages to its depositors. These value-added bank FDs include benefits beyond income tax exemption. So, it is important for the bank depositors to know the value-added bank FDs and its offerings before going for a bank FD opening.

Speaking on the key features that help a bank depositor to maxime one’s money’s worth through bank FDs Praveen Kutty, Head Retail Banking at DCB Bank said, “There are fixed deposits, which come with free life insurance without any medical check-up wherein the cover equals the FD amount (this is subject to time and age limit and maximum insured amount). On the other hand another FD option allows you opt for free medical consultation on a virtual platform, which is both comforting and safe. Not to forget the FD also offer very attractive deposit interest rates.”

On how does a bank can offer such value-added FDs SEBI registered tax and investment expert Jitendra Solanki said, “Banks are able to provide such value-added bank fixed deposits through partnerships and tie ups with insurance companies.” However, Solanki reminded bank depositors that such value-added bank FDs certain restrictions that is linked with the age of the bank depositors and the tenure of the bank FDs. he advised bank depositors to keep a close eye on such restrictions while going for a value-added bank FD.

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