Fixed Deposit (or FD) is a low investment vehicle that lets investors keep their money at a fixed rate of interest. Although it is well known that interest rates on fixed deposits are higher for senior citizens than that given to the regular investors. But what if, as a regular citizen, you get a rate that is 25 to 30 basis points higher than the applicable card rate? Now, this is what we call a wow moment for regular investors. Amid increasing new COVID-19 cases in the country and ongoing lockdown, two state-owned banks have emerged with enhanced interest rates on deposits, but only for a short time, in an attempt to incentivize individuals to take Covid-19 vaccine. Let's see what's available to you.
UCOVAXI-999 Scheme By UCO Bank
According to a PTI source, city-based UCO Bank is providing individuals who have taken at least one dose of a COVID-19 vaccination a 30 basis point (bps) higher rate on 999-day fixed deposits. "We are also taking minor steps to encourage vaccination drives. We are offering UCOVAXI-999... for a limited period till September 30," a bank official stated. UCO Bank also stated on its Twitter account that "Are you #vaccinated? #UCOBank introduces #UCOVAXI999, an attractive Fixed Deposit Scheme for the Vaccinated Individuals! Contact nearby Branch for details! T&C Apply!." If an investor is vaccinated and deposits in UCO Bank Fixed Deposit for 999 days or above 2 Years up to 3 Years then he or she will get an interest rate of 5.3% respectively under the UCOVAXI-999 scheme of the bank. But in case the investor is not yet vaccinated, then he or she will get the applicable rate of 5.00% only for the same period.
Immune India Deposit Scheme of Central Bank of India
In a bid to encourage its customers to get vaccinated, the Central Bank of India has also recently launched a new fixed deposit scheme called "Immune India Deposit Scheme" which is in force from 13.04.2021. An existing customer who has taken at least one dose of COVID-19 vaccine with proof of it will be eligible for the scheme. For the general public, senior citizens, staff, ex-staff, and senior citizen ex-staff, the scheme will be offered in MIDR, QIDR, MMDC, and FDR. The deposit must be made for 1111 days and no deposit for a longer or shorter period will be allowed under the scheme. A deposit can be made under this scheme by making an initial contribution of Rs 1000 up to a ceiling of Rs 2 Cr. Immune India Deposit Scheme - for individuals who are vaccinated, an additional interest rate of 25 basis points (bps) above the applicable card rate is offered. As a result, the scheme's rate of interest will be 5.35 per cent, subject to change. Senior citizens, on the other hand, are eligible for additional interest as applicable. The Scheme is only valid until December 31, 2021. Premature withdrawal is permitted, and the applicable rate of interest for the deposit period will be provided, subject to the regulations regulating premature withdrawal. The bank has stated some guidelines on its official website that "Branch will ensure that customer provides any satisfactory proof of getting administered a jab of any COVID-19 vaccine. Branch will note down reference ID of Vaccination or keep in record hard copy of certificate to this effect." Eligible customers can also collect the Deposit Receipt generated under this scheme online by applying and providing the COVID-19 vaccination reference ID on online platforms of the bank. As with other Term Deposit Schemes, an OD facility against this deposit, a Nomination Facility, and a Joint Account facility (if the first holder meets the Scheme's rules) are allowed.
What should you do?
Fixed deposits are unquestionably among the strongest short-term and long-term investment possibilities. They provide a high rate of return, flexible tenor and liquidity options. Though fixed deposits are primarily for risk-averse investors, the new schemes mentioned above may be a smart choice for you if you have a short-term goal, and you have been vaccinated. If a higher return is all that matters, you can still invest in savings accounts, recurring deposits, debt, or large-cap mutual funds.
To encourage Vaccination under COVID 19, Central Bank of India launches Special Deposit Product “Immune India Deposit Scheme” for 1111 days at an attractive extra Interest rate of 25 basis points above the applicable card rate for Citizens who got Vaccinated.#Unite2FightCorona pic.twitter.com/MKEJaHgMpE— Central Bank of India (@centralbank_in) April 12, 2021