Mutual Fund SIP+Monthly Income+Life Insurance+Credit Card - This Fixed Deposit will give you all

Undoubtedly, fixed deposit scheme is one of the most popular investment options. Image source: Reuters

Undoubtedly, fixed deposit scheme is one of the most popular investment options. People who want their money to be safe and secure with a calculated return are always keen to opt fixed deposit products. FD as financial instrument is so popular because of its security and assured returns. Now, an FD has been launched, which gives you monthly income benefit, life insurance security, mutual fund SIP investment option and credit card as well. This FD has been launched by ICICI Bank. The bank calls it FD Xtra, which offers you a range of innovative term deposits. Noteworthy, ICICI Bank says it is the first bank to offer free term life insurance with fixed deposit. Also, these fixed deposits are available with an option of auto-investment in mutual fund SIPs.

According to Pranav Mishra, Head – Retail Liabilities Group, “Fixed and recurring deposits have long been a fundamental investment for most investors, irrespective of their risk profile. With the prevailing volatility in financial markets, we see a renewed interest by customers to invest in fixed and recurring deposits as they offer a combination of attractive interest rates, liquidity, safety of capital and assured returns. To offer our customers added advantage in their investment in this category, we are delighted to launch ‘FD Xtra’, a new range of fixed and recurring deposits."

Pranav Mishra adds, "These deposits are aligned to various life-goals of a customer like protection through a term plan, option of investing in equity markets through mutual fund SIPs or planning for requirements like higher education, retirement corpus, travel among others."

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— ICICI Bank (@ICICIBank) February 9, 2019

Mishra further adds, "In the interim Union Budget, the government has also proposed to increase the TDS (tax deducted at source) threshold on Fixed Deposit and other savings products to Rs. 40,000 from Rs 10,000. This increase will encourage customers to invest more in Fixed Deposits. We believe that with our FD Xtra initiative, coupled with the additional tax incentive proposed in the Budget, will attract customers to invest more money in FDs & RDs.”

Here are the types of ‘FD Xtra’ deposits you can invest in to avail benefits:-

FD Life: Get free term life insurance

Customers who are 18-50 years of age can avail the dual benefit of investment growth via FD and security through a free term life insurance of one year for the FD holder. As per ICICI Bank, "This first of its kind combo in the industry offers the unique benefit of a free term life insurance from ICICI Prudential Life Insurance Company of Rs. 3 lakh on opening an FD of at least Rs. 3 lakh for a tenure of minimum two years." Also,"In addition to getting a competitive interest rate, the customer gets a complimentary insurance cover for one year. The customer has the option to renew it next year," says ICICI Bank.

FD Invest: With Mutual Funds/SIPs

This type of FD will help customers invest the interest earned on FDs in monthly Systematic Investment Plans (SIPs) of a mutual fund of their choice from ICICI Prudential Asset Management Company. "Available with a FD of at least Rs 2 lakh for a minimum tenure of one year, FD Invest safeguards principal amount. Simultaneously, it offers an opportunity to customers to invest in mutual fund through the interest generated by the FD, " as per ICICI bank.

FD Income: Earn monthly income

This type of FD is available in the form of FDs and RDs. According to ICICI Bank, "They offer customers the flexibility of receiving their maturity proceeds in the way that suits their goals. Customers can choose to receive the entire maturity amount as a monthly income for a tenure of their choice. Alternatively, they can choose to receive 30% of the amount as lump sum on maturity of the investment and the remaining 70% as a monthly income for a tenure of their choice. Maximum tenure for all term deposits, including investment phase and payout phase, is 10 years."

FD with credit card: Get instant platinum credit card

ICICI Bank customers can get an instant platinum credit card against FD without any joining or annual fees. "This enables new-to-credit customers to conveniently get a credit card," as per ICICI Bank.

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