Are you hunting for fixed deposit schemes that offer best returns? You can consider DCB Bank’s Health Plus Fixed Deposit (FD) as they offer relatively higher interest rates than most banks. This fixed deposit scheme also comes with free medical benefits.

Rate and tenure

DCB Health Plus FD offers one of the best returns at 6.9 per cent per annum on a 700-day (almost two years) fixed deposit. The interest rates in India are close to bottoming out and may remain at these levels till the economy recovers. At the same time, the rate cycle cannot persist at the current levels for a long period too given the elevated inflation and signs of green shoots in the economy. At this juncture, lock-in of investment for about two years is tenable. This also gives the investor an opportunity to reinvest at higher rates once the interest rates head up. DCB’s 6.9 per cent rate also looks attractive compared to rates offered on similar tenure bank FDs. While most public sector banks offer only 5-5.3 per cent interest rate for this bucket, private sector banks give up to 6.5 per cent for the same period.

Bank deposits are covered by the Deposit Insurance and Credit Guarantee Corporation of India (up to ₹5 lakh for both principal and interest). Thus, this deposit is a good option for those who don’t have much appetite for risk. Senior citizens will get an additional 0.5 per cent interest over and above the FD rates being offered by the bank.

Medical benefits

DCB’s Health-plus FD also offers free medical benefits such as teleconsultations and face-to-face appointments with empanelled general physicians and specialists, in addition to ambulance services. For this, DCB Bank has tied up with ICICI Lombard General Insurance Company. The only important condition here is that the minimum fixed deposit should be ₹10,000.

However, the benefits vary with the amount of fixed deposit. Say, for a fixed deposit of ₹25 lakh and above, 10 teleconsultations, 10 face-to-face appointments, pharmacy expenses of ₹3,000 comes for free along with unlimited ambulance services. While for a FD of less than ₹ 1 lakh, medical benefits include only four free teleconsultations.

To make use of the benefits, the customer should download the ‘IL Take Care’ mobile app. The medical benefits continue throughout the tenure of the deposit. In case of premature closure, the free health benefit will also cease to exist.

About DCB Bank

DCB Bank offers loans to diversified segments including micro-SMEs, SMEs, mid-corporate, micro finance institutions and NBFCs. .As on September 30, 2020, DCB’s gross and net NPA were at a reasonable 2.27 per cent and 0.83 per cent, respectively. The collection efficiencies, which were hit during the lockdown period - have been improving since June 2020. In September 2020, the collection efficiencies for the segments – loans agianst proporty, home loans and commercial vehicles stood at 88 per cent, 91 per cent and 77 per cent respectively. The bank is also adequately capitalised with total capital adequacy ratio at 18.28 per cent.