State Bank of India (SBI), the largest public sector bank in the country has introduced a special fixed deposit scheme for senior citizens in May, last year during the pandemic, called 'SBI Wecare Senior Citizens Scheme'. It is a term deposit scheme aiming to provide a promising investment opportunity for Indian senior citizens with good interest rates. Now the bank has extended the offer till March, next year. Now, SBI has extended the duration of this scheme for the 5th time in a row, to benefit the senior citizens during this tough time. This scheme offers additional interest rates under the scheme than other FD.
SBI has officially informed, "A special SBI Wecare Deposit for Senior Citizens introduced in the Retail TD segment wherein an additional interest of 30 bps (over and 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 March 31, 2022." More interest in the term deposit scheme will certainly benefit the senior citizens who have subscribed to the scheme, or those who will opt for it. The additional interest is available both for renewal schemes and new subscribers.
The public sector bank will offer 30 bps more interest on the SBI Wecare Senior Citizens FD Scheme, as mentioned on their website. The additional interest will be given to the subscribers who have taken up the scheme for the tenor of 5 years or above. SBI provides a 5.40% interest rate on 5 years FD for common citizens, but the bank gives 6.20% interest under the special FD scheme for the senior citizens. Hence, that means under the SBI Wecare Senior Citizens FD Scheme, a senior citizen can earn 0.80% extra interest for 5 years, or more tenure. The interest rate for the SBI Wecare scheme for 1 year to less than 2 years is 5.50%, for 2 years to less than 3 years is 5.60%, for 3 years to less than 5 years is 5.80%, and for 5 years and up to 10 years, it is 6.20%. So, for 5 years or more, the scheme provides the highest interest rate. a senior citizen can earn interest with these rates on retail term deposits of less than Rs. 2 crores.
However, a senior citizen can also subscribe to the Senior Citizens Savings Scheme Account (SCSS), for a lucrative interest rate. The tenure of the SCSS is also 5 years.