SBI launches special FD scheme for senior citizens | Mint
Active Stocks
Fri Feb 23 2024 12:26:59
  1. Tata Steel share price
  2. 146.25 0.27%
  1. State Bank Of India share price
  2. 761.50 -0.58%
  1. HDFC Bank share price
  2. 1,429.50 0.68%
  1. Wipro share price
  2. 534.55 0.62%
  1. NTPC share price
  2. 336.10 -1.02%
Business News/ Money / Personal Finance/  SBI launches special FD scheme for senior citizens
BackBack

SBI launches special FD scheme for senior citizens

SBI has launched a special fixed deposit scheme for senior citizens called ‘SBI Wecare Deposit’
  • SBI says this has been done to safeguard the interests of senior citizens in the current falling rate regime
  • All the top lenders including State Bank of India (SBI), ICICI Bank, HDFC Bank, Axis Bank and others give 50 basis points interest to senior citizens. (Mint)Premium
    All the top lenders including State Bank of India (SBI), ICICI Bank, HDFC Bank, Axis Bank and others give 50 basis points interest to senior citizens. (Mint)

    State Bank of India (SBI) has launched a special fixed deposit (FD) scheme for senior citizens called ‘SBI Wecare Deposit’. This has been introduced in the retail term deposit segment to safeguard the interests of senior citizens in the current falling rate regime in the time of coronavirus pandemic.

    SBI says under this new scheme, an additional 30 basis points (bps) premium will be payable for senior citizen’s retail term deposits with “5 Years & above" tenor only.

    The ‘SBI Wecare Deposit’ scheme would be in effect upto 30 September 2020.

    Thus, the effective rate of interest for retail term deposits of senior citizens will be:

    • For FD with tenor ‘below 5 years’: 50 bps higher than the rate applicable for the general public.
    • For FD with tenor ‘5 years & above’ (new product): 80 bps higher than the rate applicable for the general public (30 bps extra premium).
    • This additional premium will not be payable in case of premature withdrawal of such deposits.

    Currently, SBI offers interest rate between 4% to 6.20% on FDs maturing in 7 days to 10 years.

    SBI has further lowered interest rates on FDs by 20 bps with effect from 12 May. Apart from this, SBI has also announced the reduction in its MCLR by 15 bps across all tenors. According to the release, "The one year MCLR comes down to 7.25 percent per annum from 7.40 percent annum p.a. with effect from 10 May 2020."

    Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

    Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
    More Less
    Published: 07 May 2020, 04:09 PM IST
    Next Story footLogo
    Recommended For You
    Switch to the Mint app for fast and personalized news - Get App