State Bank of India (SBI) has extended the Special FD Scheme (SBI Wecare) for senior citizens. The bank had launched the scheme to provide higher interest rates to the senior citizens amid falling interest rates. At that time, the bank said that the scheme would be available till 30th September, but now it has been expanded. The scheme will now be available by the end of the year. Let me tell you what the benefits of this scheme are.
The special FD scheme offered by SBI Senior citizens is named SBI Wecare Deposit. The scheme provides a higher rate of interest on their deposits to senior citizens. The scheme gives senior citizens an additional interest rate of 0.30% on FD. SBI is already providing an additional interest rate of 0.50% to senior citizens on term deposits of all periods. Thus, senior citizens can avail of an additional interest of 0.80 (0.50+0.30) on their FD by availing the SBI Wecare deposit.
These people can invest:
A person aged 60 years or older can invest in SBI weCare. The scheme is for a period of 5 years or more. The maximum deposit amount in the scheme is less than two crores. Additional interest is not paid on withdrawal before maturity in SBI Wecare deposits. The SBI scheme is now open till 31st December 2020.
Interest Rate:
By availing SBI Wecare scheme, any senior citizen can get a total interest rate of 0.80% on his deposit as compared to an ordinary citizen. After the latest amendment, SBI is providing a 5.40% interest rate to ordinary citizens on a five-year FD. If a senior citizen gets FD under a special FD scheme, the bank will offer a 6.20% interest rate on a five-year FD.
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