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SBI’s special fixed deposit scheme for senior citizens extended till December 31, check details here

SBI 'WECARE' Senior Citizens' Term Deposit scheme for senior citizens was launched in May to provide a higher interest rate to senior citizens in the current falling interest rate scenario.

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India's largest lender, State Bank of India (SBI), has extended a special fixed deposit scheme for senior citizens. The special FD scheme for senior citizens will be available till December 31. Earlier, the bank announced that the scheme would be valid till September 30.

SBI 'WECARE' Senior Citizens' Term Deposit scheme for senior citizens was launched in May to provide a higher interest rate to senior citizens in the current falling interest rate scenario.

SBI special FD scheme for senior citizens is available on fresh deposit and renewal of maturing deposits.

SBI said on its website "A special “ SBI Wecare" Deposit for Senior Citizens introduced in the Retail TD segment wherein an additional premium of 30 bps (over & 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 December 31.

SBI cut interest on FD rates on select maturities with effect from September 10. The bank has slashed the interest rates on FDs for one year to less than two year by 20-basis points (bps). After the latest revision these deposits will offer an interest rate of 4.9 percent to general customers and 5.4 percent to senior citizens.

SBI special FD scheme for senior citizens will fetch 80 basis points (bps) interest rate above the rate applicable to the general public. SBI gives 5.4 percent interest rate on five years FD 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 6.20 percent, after the latest revision.

This additional interest i.e. 30 bps under the special scheme for senior citizens will not be payable in case of premature withdrawal of such deposits. Therefore, if you opt for premature withdrawal of a FD under the scheme, your fixed deposit investment will fetch only 5.9 percent i.e. 50 bps above the general customers.