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 some of the favoured instruments for the banks to improve deposits. To entice extra deposits by way of financial institution FDs, numerous banks are providing some value-added benefits to its depositors. These value-added financial institution FDs embody advantages past revenue tax exemption. So, it can be crucial 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 price by way of financial institution FDs Praveen Kutty, Head Retail Banking at DCB Bank stated, “There are fastened deposits, which include free life insurance coverage with none medical check-up whereby the duvet equals the FD quantity (that is topic to time and age restrict and most insured quantity). On the opposite hand one other FD choice permits you decide at no cost medical session on a digital platform, which is each comforting and protected. Not to neglect the FD additionally provide very engaging deposit rates of interest.”
On how does a financial institution can provide such value-added FDs SEBI registered tax and funding professional Jitendra Solanki stated, “Banks are ready to present such value-added financial institution fastened deposits by way of partnerships and tie ups with insurance coverage firms.” 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 a detailed eye on such restrictions whereas going for a value-added financial institution FD.