Union Bank of India (UBI) has launched a new deposit scheme. The Union Wellness Deposit Scheme is its name. The bank is offering health insurance cover with this scheme. This will benefit the investor with interest insurance with interest income on investing in this scheme. UBI has compromised on Manipal Signa Health Insurance for this. Let’s know the special things of this scheme.
You have to invest at least 10 lakh rupees
In this scheme, you have to pay at least 10 lakh rupees for 375 days. Then you have a health policy covering Rs 5 lakh from the bank (Health policy) Will get it. The premium bank of this health policy will be paid. A person can deposit up to Rs 3 crore in this scheme. UBI is also offering a complimentary super top-up policy of 5 lakh cover in this scheme. This insurance cover is only for once. If an investor renews this FD scheme, then the health policy will not get the benefit.
6.75 to 7.25 percent interest
This FD scheme of the bank will get 6.75 percent interest. The interest for senior cities will be 7.25 percent. Joint account is allowed in this scheme. But insurance coverage will be available only to the primary account holder. On deposit in this scheme, there will be a 30 -day waiting period for insurance cover. A person of 18-75 years can deposit in this scheme. The question is, for whom will it be beneficial for investing in this scheme?
Senior Cities will get additional health cover
True North Finance Founder Lieutenant Kanral Interesting Bakshi (Retired) says that this scheme may be beneficial for senior cities, as it will give them additional health cover. If we talk about interest rate, then it is 6.75 percent, which is higher than the interest rate of FDs of other banks. HDFC Bank and ICICI Bank are offering interest rates between 6.60 to 6.70 percent. This rate is on deposit of less than one year to 15 months.
It will be difficult for small investors to invest in this scheme
Asset Elixir founder Shivam Pathak said that the interest in this scheme is more than FDs of other banks. After the insurance cost, it looks even more. He said, “But, there are limitations of this scheme. First, this scheme will have to invest at least Rs 10 lakh. Due to this, small investors will have to be less interest in this scheme. Second, Insurance coverage will be for only 375 days. Insurance coverage will not be available even if FD is renewed.”
DICGC guaranteed deposit of only Rs 5 lakh
Investors also need to keep in mind that investment of at least Rs 10 lakh is necessary in this scheme. However, Deposit Insurance and Credit Guarantee Corporation (DICGC) In FD, the deposit lipper guarantees up to Rs 5 lakh. This means that if you invest 10 lakh rupees in this scheme, then you will get an insurance cover of only 5 lakh rupees from DICGC.
Should you invest in this scheme?
This FD scheme cannot become an alternative to regular health policy. If a person deposits money in this scheme, then his health coverage will increase for only 375 days. Since the premium of health policy is high for senior cities, this scheme is beneficial for them. They will not have to pay any premium for an additional Rs 5 lakh health cover.
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It is difficult to say about other services including its settlement ratio, which will get health policy with the scheme. If you want to invest in this scheme only for health cover, then it is better that you buy a regular health policy and renew it every year. You have to pay its premium. But this will fulfill your need for health policy.