Bank FDs (fastened deposits) are one of many prime risk-free funding choices for depositors. Despite reducing Bank FD rates of interest (lower than 5 per cent in main PSU banks) it has remained one of the favoured instruments for the banks to extend deposits. To appeal to extra deposits by way of financial institution FDs, varied banks are providing some value-added benefits to its depositors. These value-added financial institution FDs embody advantages past revenue tax exemption. So, it is necessary for the financial institution depositors to know the value-added financial institution FDs and its choices earlier than going for a financial institution FD opening.
Speaking on the important thing options that assist a financial institution depositor to maxime one’s cash’s value by financial institution FDs Praveen Kutty, Head Retail Banking at DCB Bank stated, “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 financial institution can provide such value-added FDs SEBI registered tax and funding knowledgeable Jitendra Solanki stated, “Banks are able to provide such value-added bank fixed deposits through partnerships and tie ups with insurance companies.” However, Solanki reminded financial institution depositors that such value-added financial institution FDs sure restrictions that’s linked with the age of the financial institution depositors and the tenure of the financial institution FDs. he suggested financial institution depositors to maintain an in depth eye on such restrictions whereas going for a value-added financial institution FD.
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