YES Bank Launches FD Scheme with Coronavirus Health Insurance Cover

YES Bank Launches FD Scheme with Coronavirus Health Insurance Cover

Under current financial circumstances, FDs have once again become a preferred mode of saving. Despite the lowing rate of return on bank deposits an increasing base of customers are opting for bank FDs these days. In this opportune time, YES Bank has come up with one-of-its-kind FD Scheme for depositors. The scheme offers a decent rate of interest at 7.25% along with a complimentary COVID-19 Cover for one year.

The Bank has partnered with Reliance General Insurance to offer health insurance cover to its FD customers. The policy is valid till June 30, 2020.

Let’s review the policy and find out how it compares with other FD schemes from leading banks like SBI, HDFC, ICICI & more.

Features & benefits

ROI:

The Yes Bank’s FD Scheme offers 7.25 per cent rate of return on FD schemes of 18 months or above tenors. This ROI is better than the one being offered by other private banks like ICICI Bank or HDFC Bank. They are offering 5.55 per cent and 5.60 per cent respectively, on one -year FDs.

YES Bank FD Rates at Glance:

Period Regular Depositors Senior Citizens

7 to 45 days

5.00%

5.50%

46 to 6 months

6.00%

6.50%

6 months< 1 Year

6.75%

7.25%

1 Years to <= 10 years*

7.00%

7.50%

Special Rates

18 Months 8 Days to 18 Months 18 Days

7.25%

7.75%

2 years < 3 years

7.25%

7.75%

*Annualised rates vary

Thus, the rate of interest is pretty attractive.

Eligibility

To be eligible for complimentary COVID Cover the applicant could be a child of three months or a grown up till 60 years of age. Only primary account holder is covered.

Insurance Benefit

YES Bank’s FD+ COVID Covers offers Rs 25000 cover for Coronavirus for FDs of Rs1 lakh and above for 1 year. The benefit is offered at per customer basis. If you buy more than 1 policy, the cover will not be more than the threshold amount set.

Last Date

This is a limited time scheme, valid till June 30, 2020.

Insurance Premium

The YES Bank will pay the policy premium to the insurance company and thus the benefit for a sum assured of Rs 25,000 is complimentary to customers opting for Rs 1 lakh or above FD.

Exclusions:

It is important to look the exclusion of policy.

1. The YES Bank FD COVID-19 policy has a waiting period of 15 days. That is the claim cannot be raised before 15 days of buying the FD.

2. Travel to COVID 19 restricted countries preceding the policy start date is also barred for 45 days.

3. The claim will not be payable if the depositor is living or sharing the same accommodation with any COVID-19 positive person.

4. Expenses for self-quarantine are not covered under this policy.

5. The cover is not offered for any pre-existing condition. The claim will be strictly made in case of COVID diagnosis confirmed by the Centre authorised by the Union Health Ministry of India.

Also Read: Investing in COVID Times: Dos & Don’ts of Fixed Deposits for Maximum Returns

Should you opt for YES FD + COVID Cover??

Before you opt for YES FD + COVID Cover Scheme keep following points in mind.

  • The rate of interest is attractive at 7.25 %, much better than what other banks and NBFCs are offering.
  • Insurance should never be mixed with investment. Thus decision to opt for YES Bank’s FD scheme should not be solely based on Insurance Cover being offered. It should be part of your portfolio as per your risk appetite and investment goals.
  • If you do not have a basic health insurance policy, only in that case the cover of Rs 25000 may matter to you. All basic health insurance policies cover COVID 19 in care and hospitalisation charges.
  • In order to avail of COVID-19 cover benefit, you need to invest a minimum of Rs 1 lakh. So, the quantum of investment is also an important consideration.
  • In case you are opting for a joint deposit with your spouse, only one of you that is registered as a primary depositor in papers will be covered.
  • The COVID-19 cover is valid for only one year from the date of commencing FD.

Looking at these points it is clear that the complimentary insurance cover should not be the deciding factor for FD.

Also take a quick runner on things to keep in mind when choosing an FD Scheme.

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