Savings bank interest rates of most banks have come down. Also, the average FD interest rate on 1-year or 5-year deposit is around 5.5 per cent. There are several investors who wish to invest in a bank FD at higher rates. It could be to park one’s retirement savings and get a regular income or if the financial goals are near and the safety and security of the money are paramount. While debt mutual funds and equity markets are looking volatile, the bank FD remains a safe place to park funds till the prevailing uncertainty due to COVID-19 subsides.
And, if going out in the lockdown or maintaining social distancing is still worrying you, there are online bank FDs you can invest in. Here is what DCB Bank is offering on its bank FD – Online opening of FD account, a life cover for free and a competitive rate of interest. Investors are, however, advised to make their own investment decision before proceeding.
DCB Zippi Online Fixed Deposit
The FD offers one to choose between regular DCB Zippi Online Fixed Deposit or opt for the benefit of free life insurance with DCB Zippi Online Suraksha Fixed Deposit. The regular Zippi FD allows the customer to select flexible tenure and interest payment options.
Individuals anywhere in India can invest in DCB Zippi Online Fixed Deposit without having to open a Savings Account with DCB Bank. Upon maturity of the DCB Zippi FD, the interest earned and principal amount are transferred to the customer’s savings account from which the principal or the original investment amount was received to make the Zippi FD.
According to the bank, creating a Zippi FD is completely contactless, no visit to a bank branch is needed. DCB Zippi FD customers can open, manage and close their FD accounts through their smartphones, tablets or desktop computers.
DCB Suraksha Fixed Deposits
The maximum life insurance cover available is for Rs. 50 lakh, across all DCB Suraksha Fixed Deposits held in the name of the primary applicant. That means a single DCB Zippi Suraksha Fixed Deposit amount above Rs 50 lakh is eligible for a free life insurance cover of maximum Rs 50 lakh. The Insurance cover is valid from the age of 18 years till the account holder attaining the age of 55 years. It is required to provide PAN, nomination and email ID to open DCB Suraksha Fixed Deposit. The fixed deposit tenure is 36 Months. No life insurance premium is payable by the customer for this specific life insurance cover. No medical tests are required for linked life insurance.
An FD holder can opt for quarterly compounding by reinvesting the interest or receive the interest earned amount on a monthly or quarterly basis. The interest rate for a three-year fixed deposit is 7.35 per cent per annum (as on 3rd June 2020). Using the automatic renewal option with DCB Zippi Fixed Deposit ensures that the money does not remain idle even for a single day.
DCB Bank is a scheduled commercial bank regulated by the Reserve Bank of India. Anyone looking to invest need to consider one’s risk profile, tax status and carefully invest after speaking to one’s financial advisor.