{"id":12654,"date":"2020-05-21T11:47:32","date_gmt":"2020-05-21T11:47:32","guid":{"rendered":"https:\/\/securenow.in\/blog\/?p=12654"},"modified":"2026-01-12T07:19:47","modified_gmt":"2026-01-12T07:19:47","slug":"yes-banks-fd-with-covid-cover-avoid-deposits-that-come-with-bundled-policies","status":"publish","type":"post","link":"https:\/\/securenow.in\/insuropedia\/yes-banks-fd-with-covid-cover-avoid-deposits-that-come-with-bundled-policies\/","title":{"rendered":"Yes Bank\u2019s FD with COVID cover: Avoid deposits that come with bundled policies"},"content":{"rendered":"
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Perhaps alarmed with falling deposits and loss of customers\u2019 confidence, Yes Bank has held rolled out a new scheme. The bank launched a fixed deposit (FD) product with an insurance cover for COVID-19 illness<\/a>. It has tied up with Reliance General Insurance for the product. Yes Bank will bear the premium cost for a sum assured of Rs 25,000, in the case of depositors who park sums in excess of Rs 1 lakh. Should you take the bait and is the insurance cover worth it?
\nWhat\u2019s the offer?<\/strong>
\nAll investments in excess of Rs 1 lakh, made in Yes Bank FDs for tenures of more than a year will now come with a complimentary COVID-19 insurance cover<\/a>. The bank is offers an interest rate of up to 7.25 per cent on this fixed deposit. The scheme is open for investment till June 30.
\nThe cover is valid only for the first year, even if you buy a longer term FD. If, during this time, you get diagnosed with COVID-19, you will get a lump-sum amount of Rs 25,000. It is a fixed benefit insurance cover. You would not need to be hospitalised for actual treatment. You can take only one insurance policy cover, even if you invest in many fixed deposits of Yes Bank.
\nBetter rates<\/strong>
\nInterest rates are higher (up to 7.25 per cent) on the one-year FD when compared to those of other large private-sector banks. ICICI Bank and HDFC Bank offer 5.25 per cent and 5.60 per cent interest rate, respectively, on their one-year FDs. The insurance cover is for free; the bank pays the premium on your behalf.
\nThose aged between three months and 60 years are eligible for investing in this FD.
\nWill bundled cover work?<\/strong>
\nThe complementary insurance cover has a waiting period of 15 days. The policy excludes any travel to restricted countries for 45 days preceding the insurance start date, and co-habitation with an existing COVID-19 patient.
\nThe cover is only for the first holder, even in the case of joint accounts. The insurance benefits are also not available to senior citizens, even if they are the first holders.
\nThe cover is valid for a period of one year only and Rs 25,000 cover is inadequate to cover the costs of the COVID-19 treatment.
\nYes Bank did not respond to Moneycontrol\u2019s queries on the low cover.
\nAbhishek Bondia, co-founder and principal officer of SecureNow says, \u201cThe insurance cover is extremely insufficient in case of hospitalisation. A day\u2019s charges are Rs 15,000 to Rs 20,000 for COVID-19 treatment. There are additional charges for patients admitted to intensive care units (ICUs) and for using ventilator service.\u201d According to data from the general insurance council, the average claim amount settled for COVID-19 treatment is Rs 2 lakh.
\nShould you invest?<\/strong>
\nDepositors became wary about Yes Bank after the RBI imposed restrictions on withdrawals in March. Eventually, a consortium of lenders led by The State Bank of India (SBI) took stakes in Yes Bank and bailed it out. Meanwhile, investors withdrew their deposits in hordes. In 2019-20, the bank\u2019s deposit base fell by 53 per cent. \u201cThe bank is looking to shore up its deposit base with a complementary COVID-19 insurance cover,\u201d says Amol Joshi, founder of Plan Rupee Investment Services.
\nGiven the Yes Bank episode and memories of PMC Bank\u2019s woes before that, it is important to research a bank\u2019s credentials before putting your life savings in it. While it\u2019s tough to scrutinise a bank\u2019s financials, it is just safer to stick with larger banks and leading names, instead of going to a bank that offers higher interest rates, with your eyes shut.
\nIt is also a good practice to have standalone insurance covers. Says Bondia, \u201cYou should consider buying a COVID-19 insurance cover that is much more holistic and has a higher sum assured rather than buying the bundled cover.\u201d You should look at a minimum of Rs 2 lakh as cover for COVID-19 if you are looking to buy a fixed benefit insurance cover. The premium is Rs 2,040 plus taxes while purchasing a separate policy from Reliance General Insurance.<\/p>\n

Additional Read: Corona Kavach Insurance\u00a0<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Perhaps alarmed with falling deposits and loss of customers\u2019 confidence, Yes Bank has held rolled out a new scheme. The bank launched a fixed deposit (FD) product with an insurance cover for COVID-19 illness. It has tied up with Reliance General Insurance for the product. Yes Bank will bear the premium cost for a sum […]<\/p>\n","protected":false},"author":4,"featured_media":12064,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_lmt_disableupdate":"no","_lmt_disable":"no","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[410,319],"tags":[1372,1458],"class_list":["post-12654","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-media-coverage","category-media","tag-corona-kavach-insurance","tag-covid-19-insurance-cover"],"acf":[],"modified_by":"SecureNow","_links":{"self":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/12654","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/comments?post=12654"}],"version-history":[{"count":5,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/12654\/revisions"}],"predecessor-version":[{"id":34529,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/12654\/revisions\/34529"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/media?parent=12654"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/categories?post=12654"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/tags?post=12654"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}