InvestorQ : What is the new scheme launched by YES bank and should I invest in it?
Anisha Awate made post

What is the new scheme launched by YES bank and should I invest in it?

Diya Chitale answered.
1 year ago
YES, Bank has rolled out a new scheme after many customers have lost their faith in the bank, and deposits with the bank were falling tremendously.

What is the scheme?
All investments in excess of Rs. 1 lakh with YES bank in the form of fixed deposits for more than a year shall come up with a complimentary COVID-19 insurance cover. The bank offers interest rates up to 7.25% on these fixed deposits. The scheme shall be open until 30 June. However, the cover is valid only for one year, even if one buys a long-term FD. If one is diagnosed with COVID-19, he shall be given Rs. 25,000 which is a fixed amount and one needs not to be hospitalized for the same. Every person with multiple FDs shall be eligible for only one insurance cover. The insurance cover is only eligible for individuals below 60 years of age. In the case of joint accounts, only the first holder shall be eligible for the insurance cover. The said policy is in collaboration with Reliance General Insurance.

The complimentary insurance cover provided shall have a waiting period of 15 days and the policy restricts travel to some countries and co-habilitation with COVID-19 patients within 45 days of taking insurance.

Should you invest?

It is very important to research a bank’s credentials before putting any money in it and after the YES bank episode, the bank’s reputation had downgraded. So, we are not really sure of putting back money in a bank that is just recovering from its worst condition.

Secondly, it is better to have insurance covers that are not based on any other factor and have a higher sum assured.
If you are looking to cover yourself against COVID-19, Rs. 25,000 isn’t going to help much. The minimum insurance cover shall be of Rs. 2,00,000 which will cost you about 2000-2500 plus taxes.

So, we do not really think that the option provided by YES bank is going to give many benefits to the customers. It is yet another strategy by the bank to call for deposits.