SBI Fixed Deposit feature that enables senior citizens to get over 2x in 10 years is nearing its end!
By enabling an additional interest of 0.5% over and above the existing extra 0.5%, SBI’s WECARE fixed deposit scheme has helped senior citizens earn more on their long-term deposits of 5 to 10 years. The scheme was launched during the pandemic on May 12, 2020, and it is valid till the end of this month, i.e. September 30, 2023, according to information on the SBI website.
SBI says that the purpose of the WECARE scheme is to protect the income of Senior Citizens by providing additional interest on their Term Deposits.
Under this scheme, an “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” is provided, according to the SBI website.
The additional interest benefit of this scheme is applicable on FDs of a minimum of 5 years and a maximum of 10 years. It is also available for fresh deposits as well as for the renewal of maturing deposits.
Also Read: Fixed Deposit interest rates have increased but many depositors will fail to beat FY24 inflation!
Currently, SBI is offering 6.5% interest on deposits by the general public for a tenure of 5 to 10 years. The bank provides an additional 0.5% interest to senior citizens. However, with an additional 0.5% interest rate enabled by the WECARE scheme, senior citizens become eligible to get 7.5% interest on deposits of 5 to 10 years in SBI.
Calculation shows that with the 7.5% interest, any amount invested by senior citizens in SBI Fixed Deposit grows more than 2x in 10 years. For example, if a senior citizen deposits Rs 1 lakh in SBI’s 10-year FD, he will get approx. over Rs 2.10 lakh after 10 years. Without the WECARE benefit, the return after 10 years for this senior citizen will be just around
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