SBI WeCare Fixed Deposit Scheme State Bank of India (SBI) introduced a special fixed deposit scheme for senior citizens called SBI ‘WECARE’ with the aim of protecting their income. The scheme was launched to provide a higher interest rate on term deposits to those above the age of 60 years during. As of now, the SBI ‘WECARE’ Senior Citizens’ Term Deposit scheme is giving 6.5% interest. You can check the latest SBI Deposit rates. The ‘WECARE’ Senior Citizens’ Term Deposit can only be opened for tenor ranging from a minimum of 5 years to a maximum of 10 years. And how will the interest. be paid in this scheme? FAQs on SBI WECARE Deposit. What is the rate of return offered by SBI under the scheme? Currently, SBI offers general citizens an interest of 5.40% p.a. On a term deposit having a tenure between 5 years and 10 years. Under the WECARE scheme, senior citizens will be offered a rate of return of 6.20% p.a.

By Administrator_India

The scheme is known as ‘SBI Wecare Deposit’, this will help senior citizens get higher interest rate on their money and to safeguard the interests of senior citizens in the current falling rate regime.

Known as SBI Wecare Deposit,SBI has launched a special FD scheme for senior citizens in India. Under the scheme, senior citizens will get an additional 30 basis points interest on their fixed deposits.

Banks in India have been giving a higher rate of return on FDs to senior citizens. This has led to FDs being the preferred choice of investment for senior citizens in the country.

Usually, most banks offer around 50 basis points higher returns than their benchmark rates to senior citizens. Now, SBI says it will provide an extra 30 basis points over and above this 50 basis points interest.

The scheme is called ‘SBI Wecare Deposit’ and will help senior citizens get higher interest rate on their money and safeguard their interests in the current falling rate regime.

Here’s all you need to know about SBI special FD scheme SBI Wecare Deposit for senior citizens:

– In SBI Senior citizens special FD scheme, residents of 60 years or more are eligible to invest.

– SBI Wecare Deposit special FD scheme for senior citizens is applicable for tenure of 5 years or more.

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

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

– SBI offers up to 80 basis points higher interest rate on these deposits to senior citizens.

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

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

– Penalty of 0.5 percent may apply

– Maximum deposit amount: Less than Rs 2 crore

A few days back SBI launched the new senior citizen deposit scheme branding it as an SBI WeCare Deposit. Between SBI Wecare Deposit Vs Senior Citizens Savings Scheme (SCSS), which is the best one you can choose?

What are the features of the SBI WeCare Deposit Scheme for Senior Citizens?

# This scheme is meant for Senior Citizens whose age is 60 years and above.

# Available for Resident Indians ONLY. This scheme is not meant for NRIs.

# You can open this deposit only for 5 years to 10 years term.

# It’s a special scheme launched to help seniors during the COVID-triggered interest rate reduction. Hence, this is a limited period scheme. The scheme is open between May 12, 2020, and September 30, 2020.

# The current interest rate for SBI WeCare is 0.80% higher than the normal FD rates. Usually, the interest rate difference between normal citizens to senior citizens is 0.50%. However, for this SBI WeCare Deposits (5 years and 10 years deposits), they are higher of 80 BPS. Hence, the current interest rate on SBI WeCare Deposit is 6.5%.

I have highligted in yellow with respect to the applicable interest rate on SBI WeCare Deposit.

# Premature withdrawal is allowed. However, the additional 0.30% benefit for 5 years and 10 years deposit will not be payable. Hence, if you tried to withdraw before maturity, then you will get the interest rate of 6.2%

# Interest payment is either monthly/quarterly or at maturity.

# There is no tax benefit under this scheme.

# TDS will be deducted on the interest payment if the total interest (from all FDs, RD, etc. but not savings account) paid in a financial year exceeds Rs 50,000.

# You can avail a loan on this Deposit.

SBI WeCare Deposit Vs Senior Citizens Savings Scheme (SCSS) – Which is the best?

Now let us understand the difference between SBI WeCare Deposit Vs Senior Citizens Savings Scheme (SCSS).

# The biggest difference is an interest payout. The current interest rate on the Senior Citizens Savings Scheme (SCSS) is at 7.4%. However, the SBI WeCare Deposit offers you at 6.5%. It is almost a 0.9% difference.

# SBI WeCare Deposit is available for up to Rs.2 Cr. However, the Senior Citizens Savings Scheme (SCSS) maximum limit is Rs.15 lakh ONLY.

# No Income Tax Benefit if you invest in SBI WeCare Deposit. However, the money you deposit in the Senior Citizens Savings Scheme (SCSS) is eligible for deduction under Sec.80C.

# Interest payment in SBI WeCare Deposit is on monthly/quarterly or at maturity. However, in the case of the Senior Citizens Savings Scheme (SCSS), it is on a quarterly basis.

# If you try to break the SBI WeCare Deposit before maturity, then you will end up earning the interest rate of 6.2%. However, in case of Senior Citizens Savings Scheme (SCSS), the account is closed after the expiry of 1 year but before the expiry of 2 years from the date of opening of the account, an amount 1.5% of the deposit shall be deducted and the balance paid to the depositor. In case the account is closed on or after the expiry of 2 years from the date of opening of the account, an amount equal to 1% of the deposit shall be deducted and balance paid to the depositor.

# Loan facility is available in the case of SBI WeCare. But you can’t avail the loan in case of Senior Citizens Savings Scheme (SCSS).

# In the case of SBI WeCare Deposit, the term available is 5 years to 10 years. However, in the case of SCSS, it is 5 years only. Also, in the case of SCSS, you are allowed to extend for one more time only once.

Refer the complete details about Senior Citizens Savings Scheme (SCSS) at our post “Post Office Senior Citizen Scheme (SCSS)-Benefits and Interest Rate“.

Conclusion:-Considering all the above features, I don’t think it is worth to invest in SBI WeCare FD. Instead, I feel the Senior Citizen Savings Scheme (SCSS) is far better.

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