About 2 Weeks Left For SBI's WECARE FD Scheme To End, Offers Extra 100 Bps Returns To Senior Citizens

To safeguard the income of senior citizens, India's largest PSU bank, State Bank of India (SBI) is offering an additional 100 basis points or 1% returns on fixed deposits below Rs 2 crore, compared to the normal rates offered by the bank to the public. These additional rates are offered under SBI's special FD scheme, 'SBI WECARE'. However, this special FD scheme will end soon, to be precise in a little over two weeks.

On its website, for the special FD scheme, SBI said, "Additional premium of 50 bps (over and above existing premium of 50 bps) over card rate for Public i.e., 100 bps over card rate for Public."

Simply put, senior citizens can earn up to 1% additional interest rates on FDs compared to others under this special FD.

The largest public sector bank launched the Deposit Scheme "SBI WECARE' to protect the income of senior citizens by offering additional interest on Term Deposits. It was introduced in May 2020.

The minimum tenure for SBI WeCare is 5 years and can go up to a maximum of 10 years. The payment of interest is carried as:

Term Deposit - At monthly/ quarterly interval

Special Term Deposit- On maturity interest, net of TDS, shall be credited to the customer account.

Notably, tax deducted at source (TDS) is the applicable rate as per the Income Tax Act. The scheme is also available for the loan facility. The scheme is available on fresh deposits and renewal of maturing deposits.

SBI WeCare's special FD scheme for senior citizens will end on September 30.

Currently, SBI is offering a 7.10% rate to the general public and 7.60% to senior citizens under a specific tenure scheme of "400 days" (Amrit Kalash) which will be valid till December 31, 2023.
Under this specific tenure FD, an additional premium of 50 bps under the "SBI We-care" deposit scheme, is included.

The last time SBI revised its FD rates for deposits below Rs 2 crore was in February 2023. Since then, the bank is offering 7.50% to senior citizens for 2 years to less than 3 years, and 5 years and up to 10 years tenures. While the rate is 7.30% on 1 Year to less than 2 years, and 7% on 3 years to less than 5 years maturities. Further, the elderlies can earn up to 6.25% on 211 days to less than 1 year, 5.75% on 180 days to 210 days, 5% on 46 days to 179 days, and 3.50% on 7 days to 45 days.

These FD rates are higher compared to the interest rates in the range of 3% to 6.50% offered to the general public.

Fixed deposits are generally packed with exceptional interest rates that are offered to senior citizens compared to individuals below the age of 60 years. FDs are the most common, traditional, and risk-free investment options that offer guaranteed returns to elderlies.