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Corporate FD for Medical Emergencies

Christened Wealth2Health, the FD helps a depositor withdraw up to 75% of the invested amount for serving medical needs.

June 26, 2015 9:32 IST | India Infoline News Service
Innovation in Indian financial markets seems here to stay, both in equity and debt products. One such novel product is a corporate FD from Dewan Housing Finance Limited (DHFL) focused on helping investors cater to medical urgencies. This is a major departure from the conventional FD schemes where an investor received money only on maturity, irrespective of the purpose underlying the investment. Under the DHFL FD, premature withdrawals of invested amounts will not amount to discontinuation.
 
Christened Wealth2Health, the FD helps a depositor withdraw up to 75% of the invested amount for serving medical needs. The scheme gives an option for reinvestment of the withdrawn money later. The minimum deposit amount is Rs 25,000, interest rate offered is 9-9.50% and the maturity period ranges from 12-60 months. Under Wealth2Health, the investor gets a deposit card which can be used for cashless hospitalization at pre-specified hospital networks. He/she also avails of discount benefits on medical tests and hospitalization. A sum of Rs 1 lakh is also provided as accidental death insurance to the first deposit holder. However, if a deposit holder opts to use the invested amount towards hospitalization, he has to forgo the interest on the withdrawn amount until it is reinvested. Wealth2Health is expected to garner a better response in smaller cities and towns, where people have less cash reserves, unlike metros, in times of medical emergencies.

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