SBI extends deadline for special FD scheme; check details

Just ahead of the festive season, big relief for senior citizens. State Bank of India (SBI), the country’s largest lender, has extended the last date of the special fixed deposit (FD) scheme for senior citizens named ‘SBI Wecare deposit’ by another six months. The scheme was supposed to end on September 30, 2021. But after the extension, senior citizens can avail this facility till March 31, 2022. To protect the senior citizens during the pandemic, a few banks including SBI had floated these special FDs in May last year. This scheme offers higher returns on deposits for tenures between five and ten years.

Only senior citizens are eligible to take the benefit of these special offers.

Senior citizens are, in the usual course of business, offered 50 basis points higher interest. This additional interest was over and above that rate.

“A special SBI Wecare Deposit for senior citizens introduced in the retail term deposit segment wherein an additional premium of 30 bps (over and above the existing 50 bps) will be paid to senior citizens on their retail term deposits for five years and above tenor only. SBI Wecare deposit scheme stands extended till March 31, 2022,” SBI said in a statement.

SBI Wecare interest rates

Currently, SBI offers the general public 5.40% interest rate on five to 10 years FDs. Under the special scheme, the current interest rate is 6.20% for senior citizens. After September 30, it was supposed to go back to 5.90% for senior citizens.

However, if the customer makes premature withdrawal, the additional interest of 30 basis points over and above the 50 basis points offered to senior citizens would not be paid.

Other banks

Apart from SBI, other major lenders like HDFC Bank, Bank of Baroda (BoB) and ICICI Bank are also offering special FD schemes for senior citizens. But HDFC Bank and BoB’s special FD schemes, if not extended, will end this month. However, ICICI Bank’s Golden Year FD for senior citizens is valid till October 7, 2021.

Under this special FD scheme, HDFC Bank and Bank of Baroda both offer 6.25% interest to senior citizens. On the other hand, under the ICICI Bank’s special fixed deposit scheme, the elders get 6.30% interest rate.