SBI Senior Citizen special FD scheme vs Post Office Senior Citizen Savings Scheme
- Senior Citizens Savings Scheme (SCSS) is a government-backed savings instrument
- SBI Senior Citizen special FD scheme is applicable till 31st March 2021
Senior citizens expect to secure their lives post-retirement. They expect their investment to provide a regular income. Bank fixed deposits (FDs) and Senior Citizen Savings Scheme (SCSS) are excellent investment options for them keeping in view the long-term factor offering security with other additional benefits. Recently, country's top lender State Bank of India (SBI) announced the extension of SBI 'WECARE' Senior Citizens' Term Deposit scheme for senior citizens.
A comparison of SBI Senior Citizen special FD and Post Office Senior Citizen Savings Scheme:
Rate of interest
Senior Citizen Savings Scheme currently offers interest of 7.4 % per annum This is the highest interest rate among the various small savings schemes in India.
If a senior citizen puts a fixed deposit under the special FD scheme, then interest rate applicable to the FD will be 6.20%. This additional interest i.e. 30 bps under the special scheme for senior citizens.
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Tenure
Senior Citizens Savings Scheme (SCSS) is a government-backed savings instrument offered to Indian residents aged over 60 years. The deposit matures after 5 years from the date of account opening but can be extended once by an additional 3 years.
Interest rate on SBI Senior Citizen special FD is payable for senior citizen's retail term deposits with "5 Years & above" tenor only.
Applicability
SBI Wecare Deposit, a special FD scheme for senior citizens, has been introduced in the retail term deposit segment to safeguard the interests of senior citizens. And this scheme is applicable till 31st March 2021.
Eligibility
Senior Citizen Savings Scheme and SBI Special FD scheme can be opened by an individual above 60 years of age.
Senior Citizen Savings Scheme is available through public, private sector banks and India Post Offices. Being a government-backed savings instrument, the terms and conditions applicable to the SCSS are the same, regardless of the bank/ post office you invest through.
SBI Wecare Deposit is only applicable for senior citizens who are SBI accountholders.
Premature Withdrawal
Premature withdrawal of Senior Citizen’s Savings Scheme is allowed but penalties are applicable. The penalties on premature exit from SCSS are as follows:
1.5% of deposit amount deducted as a penalty if an exit from the scheme occurs before completion of 2 years from the date of account opening.
1% of SCSS deposit deducted as a penalty if an exit from the scheme occurs between 2 years to less than 5 years from the date of account opening
Premature withdrawal of SBI special FD scheme for senior citizens is allowed but penalties are applicable. Additional premium of 30 bps not payable on premature withdrawal, and penalty of 0.5% may apply.
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First Published:17 Dec 2020, 08:38 AM IST
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