- New FD scheme for the senior citizens brought by SBI
- Senior citizens will get 30 basic points extra interest on FDs which will be for 5 years or more
India’s biggest lender the State Bank of India (SBI) has introduced a special Fixed Deposit (FD) scheme for the senior citizens in order to get them higher interests on their money. This new FD is known as “SBI Wecare Deposit” and the scheme offers an extra 30 basic points (bps) interest to the senior citizens on their FDs which are at least 5 years of tenure.
In a statement, the bank said, “To safeguard the interests of senior citizens in the current falling rate regime, the bank has introduced a new product ‘SBI Wecare Deposit’ for them in the retail term deposit segment,”.
As of now, the senior citizens received an extra 50 bps interest rate across all tenors however from the 12th of May, SBI will provide an interest rate will range between 3.80% and 6.50% to the senior citizens on FDs which will be maturing in 7 days to 10 years.
Here are 5 things you should know about SBI special FD scheme for Senior Citizens called SBI Wecare Deposit:
1) SBI Wecare Deposit is a special FD scheme for the senior citizens which has been introduced in the retail term deposit segment to protect the interests of senior citizens in the times of falling interest rates in the economy
2) Under this new product, an additional 30 basis points (bps) premium will be provided to the senior citizens’ retail term deposits with “5 Years & above” tenor only.
3) SBI special FD scheme for senior citizens would be in effect up to 30 September.
4) “For retail term deposits of ‘5 years & above’ tenor, SBI will give senior citizens 80 bps higher interest than the rate applicable for the general public.
5) Senior citizens opting for SBI Wecare Deposit FD will get an interest rate of 6.50% on the scheme.
It may also be noted that this additional interest will not be provided if a user prematurely withdraws the deposit, said the SBI.
The State Bank of India has also slashed FD interest rates by 20 bps with effect from 12 May. The bank also announced 15 basis points reduction in its MCLR across all tenor effective 10 May.