Citibank launched FD scheme offering option to invest interest in mutual funds

On Wednesday Citibank N.A. launched Citibank Protect & Grow, a product offering customers the safety of a fixed deposit with the option to invest the interest earned into mutual funds. Under this product the customers will get the option to choose any combination of a maximum of four open-ended mutual funds from among those distributed by Citibank.

Citibank Protect & Grow has been designed keeping in the mind the needs of potential investors who aim to obtain returns that are greater than just the interest on the fixed deposit. The product offer is available on a minimum deposit of Rs.15 lakhs for a minimum tenure of 1 year. The fixed deposit interest rates, computed quarterly (simple interest), applicable for Citibank Protect & Grow will be similar to those on Citibank’s vanilla fixed deposits.

Speaking during the launch N Rajashekaran, Country Business Manager, Global Consumer Group, Citi India, said, “In the current environment, wealth preservation is as important as wealth creation. We are very happy to provide our customers with an innovative solution that helps them get more out of their safe money.”

Citibank Protect & Grow works like a Systematic Investment Plan--the interest earned on the fixed deposit is invested every quarter into mutual funds, which helps investors ride over the market highs and lows and averaging out the cost of purchase.