- Some of the private sector lenders have launched FD products which offer additional benefits as well as a higher interest rate.
- This FD offers 6.4% interest on a 700-day deposit and free medical benefits like special pricing for prescribed pharmacy expenses, teleconsultation
- Seniors will also get 0.50% higher interest on this FD.
New Delhi: Term Deposits (FDs) have been one of the most preferred instruments used by Indians to save for their future due to their simplicity and liquidity. However, with interest rates falling to historic lows, investors are gradually moving away from DFs in search of higher yields. In this scenario, some of the private sector lenders have launched FD products which offer additional benefits as well as a higher interest rate. The private sector lender DCB Bank offers one such product, known as DCB Health Plus Fixed Deposit. This offers 6.4% interest on a 700-day deposit and free medical benefits such as special rates for prescribed pharmaceutical expenses, teleconsultation and face-to-face appointments with general practitioners, specialists and emergency services. Seniors will also get 0.50% higher interest on this FD.
In this product, health benefits depend on the fixed deposit amount and are provided by ICICI Lombard General Insurance Company. The minimum investment amount required for DCB Health Plus Fixed Deposit is Rs 10,000.
What health benefits are you getting?
The health services offered by DCB Health Plus FD include
-Special rates for prescribed pharmacy expenses
-Teleconsultations and face-to-face meetings with general practitioners, specialists and emergency services on duty.
It should be mentioned here that due to the pandemic, many people prefer contactless teleconsultation (by phone or video) because they are skeptical about going to the outpatient departments (OPD) of hospitals in due to health and safety concerns.
DCB Health Plus Fixed Deposit customers can use these services by simply downloading the ICICI Lombard ILTakeCare app from Apple Store or Google Playstore. These benefits are available for one year and, if they are not used, they are not carried over to the following year. However, similar benefits would still be available to deposit holders the following year, until the term of DCB Health Plus FD.
Source: DCB Bank
Who can invest?
No medical test or hospitalization is required to purchase this FD. Resident Indians between the ages of 18 and 70 (or not yet 71) can invest in this FD.
Nowadays, few policies extend a wide range of health benefits to the elderly, so DCB Health Plus FD might be a good choice for them.
Should we invest?
Experts say these FDs look attractive because of the added benefits. But you have to be careful investing in these FDs. “These FDs offer the standard tenor interest rate coupled with additional benefits, which makes them attractive to depositors. However, it is essential that you read the terms and conditions carefully before investing,” Adhil said. Shetty, CEO and co-founder. , BankBazaar.com.
“Some key things to check include the length and extent of the coverage. For example, let’s say the FD (DCB Health Plus Fixed Deposit) variant has a term of two years but does it only provide medical services for one year? or another specified period or for the entire duration? Does the range of services offered by the FD variant vary according to the amount invested? Are there minimum and maximum age criteria? You can also check who is covered by the plan and the coverage provided. “
The CEO of BankBazaar also said that despite the health benefits provided by the FD, it cannot substitute for a comprehensive health plan, only additional protection. “If you have to break the FD, you will lose Medicare. If the link between the bank and the service provider ends, you will no longer be able to enjoy the benefit facility on your next renewal. So while an added benefit is of course always welcome, keep your savings, investment and insurance goals separate and don’t mix them up, ”said Mr. Shetty.
Warning: This article is intended for educational purposes only and should not be taken as an endorsement. Investors should consult an independent financial advisor before investing in DCB Health Plus FD for impartial investment advice.