FD with Rs 10 lakh life insurance cover: THIS bank offers 7.1 percent interest rate on 3-year fixed deposit

DCB Bank Suraksha Fixed Deposit scheme has dual benefits - one is free life insurance coverage and other is higher interest rate for shorter period.

The DCB Bank has re-introduced its 'Suraksha Fixed Deposit' scheme amid the festive season. The DCB Bank Suraksha Fixed Deposit plan is available for a 3-year FD and since it comes with a life insurance cover, it provides safety for depositors as well as their dependents. The DCB Bank said in a statement that the Suraksha Fixed Deposit scheme offers a higher annual interest rate of 7.10 per cent on a three-year deposit.

The life insurance covers will be either equal to the fixed deposit amount or a maximum up to Rs 10 lakh in case the fixed deposit amount is greater than Rs 10 lakh. The bank said that an investor will not be charged for the insurance coverage. Since the insurance cover is being offered clubbed with the FD, no medical test will be required for the investors. 

The bank explained that the life insurance cover is available with a term of 36 months and is valid from 18 years of age till the depositor turns 55. 

DCB said that even Non-Resident Indians can also invest in this. 

However, if a senior citizen wants to invest in the DCB Bank Suraksha Fixed Deposit scheme, they will be offered a higher interest rate of 7.6 per cent that yields an annual return rate of  8.05 per cent and 8.45 per cent respectively over three years tenor.

The bank offers 7.10 per cent per annual interest rate on FD for 700 days or 3 years and the deposits yield 7.49 per cent or 7.84 per cent annually.