This bank is offering ₹10 lakh insurance cover on fixed deposit

This bank is offering ₹10 lakh insurance cover on fixed deposit


DCB Bank has relaunched its DCB Suraksha Fixed Deposit, it’s a fixed 3 year FD scheme that provides an ideal combination of savings and safety for depositors as well as their dependents or loved ones. DCB Suraksha has two distinct features that distinguish it as a smart and ‘surakshit’ investment. First, it provides a high-interest rate 7.10% p.a. on a three-year deposit and, second, it offers free life insurance cover either equal to the amount of the Suraksha FD or up to Rupees 10 Lakh if the Suraksha FD amount is greater than Rupees 10 Lakh. The DCB Suraksha FD customer does not pay premium for the insurance cover. Moreover, there is no requirement for medical test to enjoy the life insurance coverage.

The regular Fixed Deposit without the Suraksha insurance is also tempting. The Bank offers an appealing 7.10% per annum interest rate on Fixed Deposit of 700 days or 3 years, that annually yields 7.49% p.a. or 7.84% p.a. respectively. Senior citizens earn 7.60% p.a. for the same duration, and the yields are 8.05% p.a. and 8.45% p.a. respectively. Furthermore, the DCB NRI Suraksha Fixed Deposit, provides NRIs with attractive returns as well as free life insurance as per the amount of the fixed deposit. Now is the ideal time to invest and make the most of high fixed deposit interest rates since the RBI has increased the repo rate by 50 basis points as of September. It has resulted in FD issuers such as banks, companies and NBFCs revising their FD rates for the better. Almost all banks give higher interest rate to senior citizens on term deposits as compared to general customers. Senior citizens depend on FD earnings to address expenses related to medical needs, daily essentials, and travel.
 

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Wish to shun market volatility? Go for insurers’ assured return plans

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With equity markets turning volatile, many investors are yearning for products that offer guaranteed returns. Banks have not hiked their fixed deposit (FD) rates to the same extent as the increase in the repo rate by the Reserve Bank of India (RBI). But yields in the bond markets have gone up, allowing insurers to offer guaranteed-return plans whose returns are better than those offered by leading banks’ FDs.

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First Published: Fri, July 15 2022. 22:21 IST !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod?n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window,document,’script’,’https://connect.facebook.net/en_US/fbevents.js’);fbq(‘init’,’550264998751686′);fbq(‘track’,’PageView’); .

SBI, HDFC Bank, ICICI Bank special senior citizens FDs; Know additional rates, deadlines, details here

SBI, HDFC Bank, ICICI Bank special senior citizens FDs; Know additional rates, deadlines, details here

Furthermore, there are various special fixed deposit schemes introduced especially for senior citizens by banks like SBI, HDFC Bank, ICICI Bank, Bank of Baroda, and Axis Bank among others. Under these special schemes, a senior citizen can enjoy premium returns with additional rates varying from 0.25 basis points to 1% over the normal rates, however, these are different from bank to bank. The term of FDs can vary from a minimum of 7 days to a maximum of 10 years and their interest rates range accordingly.

Here’s a list of three special FD schemes and validity for senior citizens by major banks:

State Bank of India (SBI):

SBI has launched a special deposit scheme for senior citizens named “SBI Wecare”. The special scheme is launched under the retail term deposit segment of SBI, where, an additional premium of 30 basis points (over & above the existing 50 basis points) will be paid to Senior Citizens on their retail deposits for ‘5 Years and above’ tenor only. The scheme is available till September 30, 2022.

At present, SBI offers a 6.30% interest rate to senior citizens on their FDs below 2 crore on 5 years to 10 years tenor. The bank had increased FD rates on deposits below 2 crore by 5 basis points to 10 basis points on February 15, 2022.

To senior citizens, the bank offers a 5.95% rate on 3 years to less than 5 years tenure, while 5.70% is given on 2 years to less than 3 years, and 5.60% on 1 year to less than 2 years. The bank offers a 4.90% rate each on between 180 days to less than 1-year tenures, 4.40% applies on 46 days to 179 days, and 3.40% which is the lowest rate, is implied on 7 days to 45 days tenure.

ICICI Bank:

ICICI Bank Golden Years FD Rates with effect from January 20, 2022, offers an exclusive additional interest rate of 0.25% per annum on FDs above 5 years tenure to senior citizens. The scheme is available till April 08, 2022, as per the bank’s website.

Notably, ICICI Bank on its website says, “Resident Senior citizen customers, will get an additional interest rate of 0.25% for a limited time over and above the existing additional rate of 0.50% per annum.” The additional rate will be available on fresh deposits opened as well as deposits renewed during the scheme period. The scheme applies to FDs from May 20, 2020, to April 08, 2022. The value for fixed deposits is below 2 crore.

Under its premature withdrawal terms, in case the deposit opened in the above scheme is prematurely withdrawn/closed after, on, or after 5 years 1 day, the applicable penal rate will be 1.25%. In case the deposit opened in the scheme is prematurely withdrawn/closed before 5 years 1 day, the prevailing premature withdrawal policy will be applicable.

Currently, ICICI Bank offers a 6.35% interest rate to senior citizens on 5 years 1 day to 10 years tenure, while 5.95% is offered on 3 years 1 day to 5 years, and 5.70% on 2 years 1 day to 3 years. The lender gives a 5.5% rate between 1 year to less than 2 years tenure, whereas 4.9% is provided on 185 days to less than 1-year tenure, 4% on 91 days to 184 days, 3.5% on 30 days to 90 days, and 3% on 7 days to 29 days tenure.

HDFC Bank:

HDFC Bank has extended its special senior citizen fixed deposits to September 30, 2022, from previous March 31, 2022. The bank offers an Additional Premium of 0.25% (over and above the existing premium of 0.50%) to senior citizens who plan to open FDs below 5 crore and for tenures above 5 years 1 day to 10 years. This special offer will apply to new Fixed Deposit booked as well as for the Renewals, by Senior Citizens during the above period. This offer does not apply to Non-Resident Indians.

Just like ICICI Bank, the private banker also offers a 6.35% rate on FDs below 2 crore on 5 years 1 day – 10 years tenure. However, the interest rate is 5.35% on FDs between 2 crore to 5 crore on the same tenures.

In FDs below 2 crore, a senior citizen can enjoy a 3.5% rate of return on 30 days to 90 days tenure, while 4% is offered on 91 days – 6 months, 4.90% on 6 months to less than 1 year. Whereas 5.50% is given from 1 year to 2 years. 5.70% is applicable on 2 years 1 day – 3 years tenure and a 5.95% rate is given on 3 years 1 day- 5 years tenure.

For FDs between 2 crore to less than 5 crore, senior citizens get 3.25% on 30 days to 60 days, 3.5% is levied on 61 – 90 days, 3.85% is applicable on 91 days – 6 months, 4.10% is offered on 6 months 1 day – 9 months, and 4.20% is given on 9 months 1 day to less than 1 year. A senior citizen can enjoy a 4.55% rate on 1 year, while 4.70% is given on 1 year 1 day – 2 years, 5% on 2 years 1 day – 3 years, and 5.10% on 3 years 1 day- 5 years.

At present, HDFC Bank offers 3% on tenures from 7 days to 29 days on FDs less than 2 crore and between 2-5 crore.

 

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