ICICI Bank has recently launched FD Xtra, a fixed deposit (FD) scheme with a host of new features. One of the variants of FD Xtra is the 'FD Plus Life Cover' that provides a free life cover to the individual on the opening an FD account with the bank. Although the life cover is free, there are three important conditions that need to be met: * The life cover will be available to those who are 18-50 years of age. * The cover is on a minimum deposit of Rs 3 lakh and for a minimum tenure of 2 years. * The cover is free only for the first year and may be renewed by the FD holder in the second year on paying the premium. As a result, in FD Xtra - FD Life, the benefit to senior citizens on account of additional interest of 50 basis points is left out. Further, a deposit above Rs 3 lakh will not get full coverage as life cover is only till Rs 3 lakh. Lastly, the deposit is to be for a minimum tenure of two years. Therefore, it is important that one explores interest rate of other banks especially when a minimum tenure of two years is what one is looking for. Deposits for tenure around 2 years If you are willing to lock-in funds in a FD for a tenure of around 2 years, have a look around. Some other banks may be offering competitive rate of interest. Currently, Utkarsh Small Finance Bank is offering 9 per cent on deposits of 456 Days to less than 2 years. DCB bank has been offering free life cover to those who are 18-54 years of age, in its Suraksha FD, on a minimum deposit of Rs 10,000 and for a minimum tenure of 3 years upto a maximum of Rs 50 lakh. While DCB in its deposits is offering 8.05 percent, ICICI deposits fetches 7.5 per cent on their 2-year deposit and other banks such as SBI, HDFC and Axis bank are offering 6.80 per cent, 7.40 per cent and 7.5 per cent respectively. Among the big banks, ICICI FD Xtra offers competitive rates and comes with the addtional features. Competitive rate of interest Here are few other banks that are offering competitive rate of interest on deposits of around two years. Au Small Finance Bank Interest rate: 8.50 per cent per annum Fincare Small Finance Bank Interest rate: 9 per cent per annum Equitas Small Finance Bank Interest rate: 8.80 percent per annum ESAF Small Finance Bank Interest rate: 8 per cent per annum Suryoday Small Finance Bank Interest rate: 8.75 per cent per annum Ujjivan Small Finance Bank Interest rate: 8.25 per cent per annum Utkarsh Small Finance Bank Interest rate: 7.85 per cent per annum North East Small finance Bank Interest rate: 8 per cent per annum Jana Small Finance Bank Interest rate: 8.5 per cent per annum What to do Before choosing 'FD plus Life Cover kind deposits', check if other banks are offering better rates for the period that you wish to invest for. Also, consider the amount of FD and see if it amount of cover suffices your life cover needs. Ideally, one should have life cover of at least ten times of one's annual net-take home pay. Also, at times, banks offer higher rates on their special deposits. Make use of the current scenario before the rates fall. A better way will be to stagger your FD investments across banks and tenures to take care of TDS and re-investment risk.