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Home >Money >Personal Finance >SBI special fixed deposit (FD) for senior citizens: Latest rates here

Fixed deposits (FDs) are the most preferred investment tool for senior citizens. FDs provide some extra benefits to the elderly such as higher interest rate and tax benefits. All major banks, including State Bank of India (SBI) and others give 50 basis points (bps) extra to senior citizens on term deposits ranging from 7 days to 10 years. To safeguard the interests of senior citizens in the current falling rate regime, country's top lender SBI had launched a special FD scheme for senior citizens to help them get higher interest rate on their money. Known as SBI Wecare Deposit, the scheme provides an additional 30 bps interest to senior citizens on their FDs.

SBI special FD scheme for senior citizens: All you need to know

1) Residents of 60 years or more are eligible to invest in SBI Senior citizens special FD scheme.

2) SBI special FD scheme for senior citizens is applicable for tenure of 5 years or more.

3) The new interest rates will be applicable on fresh term deposits as well as existing deposits.

4) SBI special FD scheme for senior citizens is applicable till 30 September 2020.

5) SBI made it available for customers from 12 May 2020

6) SBI offers 80 bps higher interest rate on these deposits to senior citizens.

7) If a senior citizen puts a fixed deposit under the special FD scheme, then interest rate applicable to the FD will be 6.2%. SBI had slashed the interest rates on FDs on 27 May.

8) Premature withdrawal : Additional premium of 30 bps not payable on premature withdrawal

9) Penalty of 0.5% may apply

10) Maximum deposit amount: Less than 2 crore

SBI latest FD interest rates for senior citizens effective 27 May

SBI offers senior citizens an additional 50 bps interest rate across all tenors. Senior citizens will get 3.4% to 6.2% on FDs maturing in 7 days to 10 years.

7 days to 45 days - 3.4%

46 days to 179 days - 4.4%

180 days to 210 days - 4.9%

211 days to less than 1 year - 4.9%

1 year to less than 2 years - 5.6%

2 years to less than 3 years -5.6%

3 years to less than 5 years - 5.8%

5 years and up to 10 years - 6.2%

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