The State Bank of India (SBI) had launched a special fixed deposit scheme for senior citizens called, ‘SBI WECARE Senior Citizens’ Term Deposit Scheme, in May of 2020. It was originally rolled out with a shelf-life of a few months which was supposed to end in September of 2020. In light of the Covid-19 pandemic, this deadline was extended several times. Recently, SBI extended that deadline and made it till March 31, 2022.
On the official SBI website, the bank commented on the same, saying, “A special SBI Wecare Deposit for Senior Citizens introduced in the Retail TD segment wherein an additional premium of 30 bps (over and above the existing 50 bps as detailed in the above table) 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 31st March, 2022.”
The lender also stated, “The rate applicable to all Senior Citizens and SBI Pensioners of age 60 years and above will be 0.50 per cent above the rate payable for all tenors to resident Indian senior citizens i.e. SBI resident Indian Senior Citizen Pensioners will get both the benefits of Staff (1 per cent) and resident Indian Senior Citizens (0.50 per cent).”
SBI ‘WECARE’ Senior Citizens’ Term Deposit: Purpose
It was rolled out with the intent of protecting the income of senior citizens by providing them additional interest on their term deposits, more specifically, their Domestic Term Deposits.
SBI ‘WECARE’ Senior Citizens’ Term Deposit: Overview
Under the scheme, customers of SBI who fall into the senior citizen category, i.e., who are 60 years and above, will get an additional 30 basis points above the existing 50 basis points over card rate for the public i.e., 80 basis points on their FDs with a tenor of 5 years or more. In line with this, the lender also offers a 5.4 per cent interest rate on said five years of FDs for the general public. If a senior citizen puts a fixed deposit under the special FD scheme, then the interest rate applicable to the FD will be around 6.20 per cent. These rates were put into effect as of January 8, 2021.
In case you decide to opt for a premature withdrawal of the deposits, the additional premium may not be paid and you may also have to pay a penalty that amounts to around 0.50 per cent.
SBI ‘WECARE’ Senior Citizens’ Term Deposit: Revised Rates (Effective January 01, 2021)
7 days to 45 days, 3.4 per cent
46 days to 179 days, 4.4 per cent
180 days to 210 days, 4.9 per cent
211 days to less than 1 year, 4.9 per cent
1 year to less than 2 years, 5.5 per cent
2 years to less than 3 years, 5.6 per cent
3 years to less than 5 years, 5.8 per cent
5 years and up to 10 years, 6.2 per cent
SBI FD Rates for General Citizens (With Effect from January 01, 2021)
7 days to 45 days, 2.9 per cent
46 days to 179 days, 3.9 per cent
180 days to 210 days, 4.4 per cent
211 days to less than 1 year, 4.4 per cent
1 year to less than 2 years, 5 per cent
2 years to less than 3 years, 5.1 per cent
3 years to less than 5 years, 5.3 per cent
5 years and up to 10 years, 5.4 per cent
SBI ‘WECARE’ Senior Citizens’ Term Deposit: Features and Benefits
One of the highlights of this scheme is that you get to avail of interest payments on term deposits at different intervals. This can be monthly or quarterly. The same can be availed for special term deposits on maturity. It should also be noted that all the interest and net of TDS will be credited directly to the customer’s account. The TDS is applicable as per the Income Tax Act.
You should also know that the scheme is available for fresh deposits, that is, if you are opening an account for the first time or it can be for the renewal of maturing deposits.
Maximum Deposit Amount
The scheme can be put into motion for any amount that comes under the benchmark of Rs 2 crore. As far as maximum tenure goes that is 10 years, so there is a significant range of options.