Over the years there have been multiple options that can be explored to manage one’s finances. However, most people prefer to invest in a fixed deposit (FD), as it remains a go-to option for people who want assured return without a risk. Especially, senior citizens have always preferred it as it is a low-risk investment tool and it helps them park their investments to gain returns in terms of steady earnings.
In the wake of the coronavirus pandemic, the country’s biggest lender State bank of India (SBI) had launched a special FD scheme for senior citizens in India. The new scheme helps them to get a higher interest rate on their investments for the tenure of five years and more.
Known as SBI Wecare Deposit, the new scheme will get an additional 30 basis points of interest on their fixed deposits. Currently, SBI offers an additional 50 basis points of interest to senior citizens on its term deposits of all tenors. But with the introduction of the Wecare scheme they can now get 80 basis points additional interest on term deposits of five-year or higher tenures. The SBI Wecare special FD scheme for senior citizens will now be available until September 30, 2021.
Here are all the details about SBI’s Wecare deposit scheme:
- Residents of 60 years or more are eligible to invest.
- The new scheme for senior citizens is applicable for the tenure of five years or more.
- New interest rates will be applicable on new term deposits as well as for existing deposits.
- The special FD scheme has been extended till September 30, 2021.
- The bank is offering up to 80 basis points higher interest rates to senior citizens on these deposits.
- If a senior citizen parks their money under the special FD scheme. The interest rate applicable to the FD will be 6.2 percent. The state-owned bank had slashed the interest rates on FDs in May this year.
- However, an additional premium of 30 bps is not payable on premature withdrawal. The bank may impose a penalty of 0.5 percent.
- The bank has capped the maximum deposit amount to less than Rs 2 crore.