The State Bank of India (SBI) has extended the deadline for its 'WECARE' term deposit scheme for senior citizens to June 30, 2023.
Under the scheme, senior citizens get an additional premium of 50 basis points (bps) over and above the existing premium of 50 bps for the public.
The scheme's minimum tenure is five years, and the maximum is 10 years. The WECARE scheme aims to ensure sufficient income for senior citizens aged 60 and above with additional interest on term deposits.
The WECARE term deposit plan was launched in May 2020 initially, with a maturity date in the same year in September 2020. But the scheme has been extended several times, including the latest one until June 30, 2023.
As per SBI, the interest on a term deposit is paid monthly or quarterly. The maturity interest for a special-term deposit is credited, net of tax deducted at source (TDS), to the customer account. The scheme also offers a loan facility for SBI customers.
The WECARE benefits are available on fresh deposits and renewal of the maturing deposits within this extended period.
The bank has revised its interest rates for term deposits from February 15, 2023. For every tenure, the interest is 50 bps higher for senior citizens. The highest is 7 per cent for the general public for two to less than three years and 7.5 per cent for senior citizens for the same duration.
But under the SBI WECARE program, a five-year term deposit of up to 10 years means an additional 50 bps for older people, representing 7.5 per cent for senior citizens compared to 6.5 per cent for the general public.
If one has not taken benefit of this scheme yet, the date extension is surely an opportunity to benefit from the higher interest rates in the long term. This FD is available in bank branches, net banking, and SBI's mobile app YONO.
In the financial year 2023-24, senior citizens will also get higher interest rates on several government-backed schemes meant for them. For instance, the interest rates on the Senior Citizens Savings Scheme (SCSS) increased from 8 per cent to 8.2 per cent effective April 1, 2023. In addition, they are also offered a higher deposit limit of Rs 30 lakh for the SBI's special fixed deposit program and plenty of other benefits.
