9.25% ING Vysya Bank FD Plus Scheme-Who should invest?

ING Vysya Bank FD Plus Scheme-ReviewING Vysya Bank FD Plus Scheme-Who should invest?

When you open any financial website, you might be seeing advertisement about ING Vysya Bank FD+ Scheme indicating 9.25% interest rates and zero pre-closure penalty charges. While on the face of it, it looks best scheme, there are several positives as well as negative points in this ING Vysya Bank FD Plus Scheme. Who should invest in such ING Vysya Bank Fixed Deposit Plus Scheme?

About ING Vysya Bank Limited

ING Vysya Bank Ltd is a premier private sector bank with retail, private and wholesale banking platforms that serve over two million customers. With over 80 years of history in India and leveraging ING’s global financial expertise, the bank offers a broad range of innovative and established products and services, across its 547 branches. The Bank, which has close to 10,000 employees, is also listed in Bombay Stock Exchange Limited and National Stock Exchange of India Limited. ING Vysya Bank was ranked among top 5 Most Trusted Brands among private sector banks in India in the Economic Times Brand Equity – Neilsen survey 2011.

Also Read: Who should invest in Post Office Monthly Income Scheme (POMIS)?

Features of ING Vysya Bank FD Plus Scheme

  • Interest on this FD scheme is 9.25% per annum.
  • This FD scheme is only for the period of 366 days to 730 days.
  • Senior Citizens would get an additional interest rate of 0.50%. Means they would get 9.75% interest rates.
  • Minimum deposit of Rs 10,000 and maximum deposit in ING FD+ scheme is Rs 15 Lakhs.
  • No penalties for pre-closure of this ING FD+ scheme.
  • Like any other FD scheme, the bank would deduct TDS as per applicable rates. You can submit Form 15H/15G for bank not to deduct TDS.
  • Crisil Rated this ING Vysya Bank as FAAA which indicates high safety.
  • Nomination facility is available.
  • Loan facility available up to 95% of the deposit amount. You would be charged 2% additional interest for such loan over and above interest rate offered on this FD scheme.
  • Auto renewal of FD scheme is available. However the bank website does not indicate about interest rate applied for such auto renewal, hence we can assume that we would get a lower interest rate on renewing FD+ scheme.
  • You can opt for quarterly or monthly interest payment option on such FD+ scheme.

How to apply for this FD scheme?

  • All Resident Indians, HUF, Partnership Firms are eligible to apply this ING FD+ scheme. You can fill your details on ING Vysya Bank FD+ scheme link and bank would contact you for further details.
  • If you are already existing customer, you can visit the bank or SMS or call over the phone and open this FD+ scheme.

Why should you invest?

  • High interest rates of 9.25% per annum for short term of 1 year to 2 years (366 days to 730 days).
  • Senior citizens could get 9.75% interest rate and annualized yield works out to be 10.63% per annum.
  • Zero pre-closure penalty charges which makes this attractive. Generally, all banks would charge 1% penalty charges for the pre closure of bank FD’s.
  • Existing customers could SMS or call over the phone and open FD+ scheme
  • Crisil Rated this ING Vysya Bank as FAAA which indicates high safety.

Also Read: What are the top rated company Fixed Deposit Schemes giving highest returns?

Why not to invest

  • This ING FD+ scheme offers only for 1 to 2 year period. If you want to invest for 1 year or 2+ years, you would get 9% interest rate only which other banks are already offering. Hence, you may not choose this as a preferred bank for FD schemes if you want to invest for the long term.
  • 9.25% interest rate is applicable for FD schemes only and not on recurring deposits (as indicated on their website).
  • The maximum FD amount is Rs 15 Lakhs for this FD+ scheme. One cannot invest more than this. Not suitable for high net worth individuals.

Conclusion: ING Vysya Bank FD Plus Scheme interest rates are attractive. Such FD+ scheme is best suitable for investors who need money in the short term of 1-2 years, but willing to get good interest rates without any penalty charges. I would have been more excited if such FD+ schemes are offered for long term period. Alternatively if you want to invest for more than 2 years, you can opt for Karur Vysya Bank (KVB) which offers 9.25% interest rates for 2+ years FD schemes.

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ING Vysya Bank FD Plus Scheme-Who should invest


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