This special FD aims in protecting income of senior citizens by providing additional interest on their term deposits. It was introduced in the year 2020.
According to the SBI website, “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.”
Payment of Interest
Term Deposit — At monthly/ quarterly interval
Special Term Deposit- On maturity Interest, net of TDS, shall be credited to Customer Account
Special Term Deposit, interest is paid on maturity, net of TDS, shall be credited to customer account.
When is the last date to invest in SBI Wecare?
The scheme has been extended to September 30, 2023. The scheme is available on fresh deposit and renewal of maturing deposits.SBI Senior citizen FD rates
SBI offers 0.50% higher interest rates to senior citizens, interest rates on regular fixed deposits vary between 3.50% and 7.50% for tenures ranging from 7 days to 10 years.
|Tenors||Rates w.e.f. 15/02/2023|
|7 days to 45 days||3.5|
|46 days to 179 days||5|
|180 days to 210 days||5.75|
|211 days to less than 1 year||6.25|
|1 Year to less than 2 years||7.3|
|2 years to less than 3 years||7.5|
|3 years to less than 5 years||7|
|5 years and up to 10 years||7.50@|
|400 days (Special Scheme i.e. “ Amrit Kalash”)||7.6|
Source: Bank website
Note that TDS is applicable as per Income Tax Rules. Form 15G/15H can be submitted by the depositor for exemption from tax deduction as per IT Rules.
Other banks offer special FD for senior citizens
HDFC Bank Senior Citizen Care FD
The bank offers an additional premium of 0.25% over and above the existing premium of 0.50% for a tenure of 5 years 1 day to 10 years. The offer is valid up to July 7, 2023, according to the HDFC Bank website. The interest rate offered is 7.75%.
ICICI Bank Golden Years FD
The bank offers an additional premium of 0.10% over and above the existing premium of 0.50% for a tenure above 5 years. The interest rate offered under the scheme is 7.50%.