Banks have started special FD scheme for senior citizens. In September, it has been announced to extend the scheme till March 2022.
SBI Fixed Deposit Scheme
- SBI’s special fixed deposit scheme for senior citizens is known as ‘SBI We Care’. SBI started this scheme on 12 May. Investment is made in this scheme for 5 years. A maximum of Rs 2 crore can be deposited in this scheme.
- In SBI’s new Wecare Deposit scheme, an additional 30 bps premium interest of 30 basis points will be available on deposits (FDs) of tenure of 5 years or more. This will be available only on the investment of senior citizens. Only customers who register in this scheme within the stipulated period will get the benefit.
Interest on Term Deposit for Senior Citizens
- Senior citizens will get 0.50% more interest than the general public on retail term deposits of less than 5 years.
- Retail term deposits above 5 years will attract 0.80% interest, including an additional 0.30%.
- However, no additional interest will be paid on premature withdrawal.
SBI Senior Citizen Savings Schemes
- The account shall be opened with a minimum deposit of one thousand rupees or any sum in multiple of one thousand rupees not exceeding Rupees Fifteen lakhs.
- The depositor may extend the account for a further period of three years after the maturity period of five years.
- The deposit made under these rules shall bear interest as directed by Govt of India from time to time quarterly. At present it is 7.40% per annum with effect from 01.04.2020.
- If the interest payable every quarter is not claimed by an account holder, such interest shall not earn additional interest.
- The whole amount of deposit in a joint account shall be attributable to the first account holder only.
- Both the spouses can open single account and joint accounts with each other.
- The depositor may nominate a person or more than one person.
- Nomination made by the depositor can be cancelled or varied.
- The deposit made at the time of opening of the account shall be paid on or after the expiry of five years or after the expiry of eight years where the account was extended from the date of the opening of the account.
- Multiple withdrawals from an account shall not be permitted.
- An individual may open an account in individual capacity, or jointly with spouse.
- NRI’s & Hindu Undivided Family are not eligible to open an account under these rules.
- An individual who has attained the age of 60 years and above.
- who has attained the age of 55 years or more but less than 60 years and who has retired on superannuation or otherwise on the date of opening an account.
- The retired personnel of Defence Services attaining the age of fifty years.