The scheme is known as 'SBI Wecare Deposit', this will help senior citizens get higher interest rate on their money and to safeguard the interests of senior citizens in the current falling rate regime.
Known as SBI Wecare Deposit, State Bank of India (SBI) has launched a special fixed deposit (FD) scheme for senior citizens in India. Under the scheme, senior citizens will get an additional 30 basis points interest on their fixed deposits.
Banks in India have been giving a higher rate of return on FDs to senior citizens. This has led to FDs being the preferred choice of investment for senior citizens in the country.
Usually, most banks offer around 50 basis points higher returns than their benchmark rates to senior citizens. Now, SBI says it will provide an extra 30 basis points over and above this 50 basis points interest.
- In SBI Senior citizens special FD scheme, residents of 60 years or more are eligible to invest.
- SBI Wecare Deposit special FD scheme for senior citizens is applicable for tenure of 5 years or more.
- The new interest rates will be applicable on fresh term deposits as well as existing deposits.
- SBI special FD scheme for senior citizens is applicable till 30 September 2020.
- SBI offers up to 80 basis points higher interest rate on these deposits to senior citizens.
- If a senior citizen puts a fixed deposit under the special FD scheme, then interest rate applicable to the FD will be 6.2 percent. SBI had slashed the interest rates on FDs on 27 May.
- Premature withdrawal: Additional premium of 30 bps not payable on premature withdrawal
- Penalty of 0.5 percent may apply- Maximum deposit amount: Less than Rs 2 crore