India’s largest lender, The State bank of India has launched a fixed deposit scheme for the senior citizens called SBI wecare deposit. It has been introduced for keeping the interest of senior citizens safe since the rates are falling down due to the pandemic outbreak.
SBI stated that under this scheme, additional 30 basis points premium will be payable to the senior citizen term deposit with 5 years and above tenor only.
This SBI wecare deposit scheme will be in effect upto 30 September 2020.
The effective rate of interest for the senior citizens will be-
1- For FD which has a tenor below 5 years- 50 bps higher than the rate for general public.
2- For FD with tenor 5 years and above- 80 bps higher than the rate for general public.
Note that it will not be payable in case of the premature withdrawal of any deposit. Currently SBI offer interest rate between 4% to 6.20% on FD that are maturing in 7 days to 10 years.
They have announced the reduction in their MCLR by 15 bps across the tenors too. The release stated- “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.”