Disruption was the keyword for the Banking Industry as the onset of Covid-19 began to unsettle customers and businesses. This involved a heavy focus on digitization and bringing forth superior investment products that lend a helping hand in difficult times like these.
We have seen that banks’ fixed deposit growth has remained healthy despite the interest rates. They have been a reliable investment avenue for us people. During the pandemic, many well-off customers didn’t have avenues to spend. Such accumulated funds were preferred to be parked as fixed deposits as other asset classes gave unsteady returns. Another reason is the equity markets. Many investors are looking at fixed deposits (FDs) for diversification as markets are at their all-time high.
There are fixed deposits that come with free life insurance without any medical check-up wherein the cover equals the FD amount (this is subject to the time and age limit and maximum insured amount). On the other hand, another FD option allows you to opt for free medical consultation on a virtual platform, which is both comforting and safe. These FDs have certain restrictions on age and tenure because the Bank is making this available free of cost. However, top-level FDs provide depositors with more benefits. Not to forget the FD also offer very attractive deposit interest rates. All of this is made possible with beneficial partnerships between banks and life insurance companies in the country.
Fixed Deposits nowadays can be made anytime, from anywhere. One can book/open an FD online via internet banking or mobile banking. So, FD account opening is no more cumbersome as it can be done by devoting a few minutes on your computer or your mobile phone.
The deposit is specifically for those who want to park their money smartly. Due to the benefits, customers keep renewing the FD, and the money stays safe with the bank for the long term. Customers test the exemplary services with such an offering and then increase the amount they like the services. This creates a sense of trust and transparency between the customer and the bank.
Bank FDs up to Rupees 5 lakh amount are insured as per the RBI guidelines. Customers can rest assured with their investment in bank FDs that offer superior and attractive interest rates. Many newspapers and popular websites provide weekly updates and information on FD rates for ordinary and senior citizen deposits.
By Praveen Kutty, Head Retail Banking at DCB Bank