Kathmandu: The heightened competition among bank and financial institutions (BFIs), consumer are benefitted the most. Now, its seems almost compulsory that the consumer must be offered beyond the higher interest rates against the fixed deposits(FD).
Commercial banks are offering a lucrative package of health and accidental insurance to attract FD from individuals. And a FDs that offers double return is in every commercial bank’s business promotion package.
Earlier, life insurers were highlighting double return on endowment insurance plans but now the BFIs have used it as a promotional tools.
NIC Asia Bank has introduced a FD scheme which offers double sum in 5 years, 9 months and 4 days. It also offers medical and accidental insurance coverage upto Rs. 84 lakh.
Global IME offers double sum after 6 years and 8 months i.e. 80 months. Similarly, the depositor can get triple return in 10 years and 7 months. In 13 years and 4 months, the depositor will get four times return.
Civil Bank has introduced a scheme of FD that offer triple return in 10 years and 2 days. In which the depositors will get accident insurance up to Rs. 10 lakhs in collaboration with Ajod Insurance and life insurance facility up to Rs.10 lakhs in collaboration with Reliance Life Insurance. Thus, if you deposit Rs.10 lakh in Civil Bank, you will get accidental coverage of Rs.10 lakh, term life insurance of Rs. 10 lakh and Rs. 30 lakh.
NCC Bank has also released NCC Prafull Term Account with 10 times return in 24 years. The bank has announced two types of plans, individual and institutional. The minimum balance of which is Rs.1 lakh. A lump sum will be given after maturity. In which there will be accidental insurance up to Rs. 5 lakh and fatal disease insurance up to Rs. 2 lakh.
There is a fierce competition among banks to introduce such a scheme. Banks have announced such a scheme by calculating cyclical interest. Where interest will earn interest. With the liquidity crunch in financial market, BFIs have started to publicize such a scheme for long-term deposits. Which will facilitate the banking system to mobilize deposits for long term. With the assessment that the demand for credit will remain high in Nepal for many more years, banks have started bringing such schemes. BFIs offering interest rate upto 13 percent for fixed deposits.