State Bank of India (SBI) special fixed deposit scheme for senior citizens has been extended. In May, the bank had announced SBI ‘WECARE’ Senior Citizens’ Term Deposit scheme for senior citizens. The scheme was launched to provide a higher interest rate to senior citizens in the current falling interest rate scenario. The special FD scheme for senior citizens will be available till year end. Earlier the bank had announced that the scheme will be valid till 30 September.
“A special “ SBI Wecare” Deposit for Senior Citizens introduced in the Retail TD segment wherein an additional premium of 30 bps (over & above the existing 50 bps) will be paid to Senior Citizen’s on their retail TD for ‘5 Years and above’ tenor only. “SBI Wecare” deposit scheme stands extended till 31st December, 2020,” SBI mentioned on its website.
SBI special FD scheme for senior citizens is available on fresh deposit and renewal of maturing deposits.
SBI slashes interest on FD rates with effect from 10 September
The country’s largest lender, SBI, has revised interest rates on its fixed deposits (FDs) on select maturities, with effect from 10 September. The bank has slashed the interest rates on FDs for 1 year to less than 2 year by 20 basis points (bps). After the latest revision these deposits will offer an interest rate of 4.9% to general customers and 5.4% to senior citizens.
Interest rate of SBI special FD scheme for senior citizens
SBI special FD scheme for senior citizens will fetch 80 basis points (bps) interest rate above the rate applicable to the general public. After the latest revision, SBI gives 5.4% interest rate on five years FD for the general public. If a senior citizen puts a fixed deposit under the special FD scheme, then interest rate applicable to the FD will be 6.20%.
This additional interest i.e. 30 bps under the special scheme for senior citizens will not be payable in case of premature withdrawal of such deposits. Therefore, if you opt for premature withdrawal of a FD under the scheme, your fixed deposit investment will fetch only 5.9% i.e. 50 bps above the general customers.