State Bank of India (SBI), the largest bank in India, has decided to extend the duration of its special Fixed Deposit (FD) scheme for senior citizens. Known as the SBI Wecare senior citizen fixed deposit scheme, it offers higher interest rates for tenures ranging from 5 to 10 years. This scheme has been granted an additional three-month extension, with the new deadline set for September 30.
SBI expressed its commitment to supporting senior citizens by introducing the 'SBI WECARE' deposit scheme, which aims to protect their income by providing additional interest on term deposits. This special FD scheme was initially introduced in 2022 and is currently available for both the renewal of existing deposits and fresh deposits.
Here are the key features of the SBI Wecare senior citizen fixed deposit scheme:
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Duration of Deposit: The scheme allows for investment tenures of 5 to 10 years, with a minimum and maximum limit.
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Eligibility: Only senior citizens aged 60 and above are eligible for this scheme, which offers higher fixed deposit interest rates.
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Interest Rate: SBI provides an extra premium of 50 basis points (bps) over the card rate for the general public, resulting in a total premium of 100 basis points over the card rate. The interest rate offered under the SBI Wecare scheme is 7.50 percent.
SBI currently offers senior citizens an interest rate that is 0.50 percent higher than the regular rates. For conventional fixed deposits, interest rates vary between 3.50 percent and 7.50 percent, depending on the tenure, which can range from 7 days to 10 years.
Other banks, such as HDFC, also offer special deposit schemes for senior citizens. The HDFC Special Senior Citizen Care Fixed Deposit provides an additional premium of 0.25 percent interest rate, on top of the existing 0.50 percent premium given to senior investors on FD accounts. Consequently, investors in the Senior Citizen Care FD scheme earn 0.75 percent higher interest than regular clients overall.
