There is good news for the senior citizen (people above 60 years of age) making a fixed deposit (FD) in the State Bank of India (SBI). Keeping in mind the coronavirus epidemic, the additional interest rate can be availed till March 2021 under the ‘SBI VCare deposit’ brought for the convenience of the elderly. This information has been received from the official website of SBI. SBI has extended the duration of this scheme for the second time.
SBI launched a new FD product ‘SBI VCare Deposit’ for senior citizens in the month of May. Under this, there is a provision for giving an additional interest of 0.30 per cent over the interest rate applicable to senior citizens in case of retail term deposits of ‘5 years or more’. Earlier this benefit could be availed till September 2020, later its duration was extended to December 2020. But now by March next year, senior citizens will be able to take advantage of this.
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0.80% more interest than others
However, SBI offers senior citizens an additional interest of 0.50 per cent on FD, above the regular interest rate fixed for others. That is, by combining this 0.50 per cent and additional 0.30 per cent interest rate, senior citizens can get 0.80 per cent more interest on retail term deposits for a period of ‘5 years or more’ under the SBI VCare deposit. This benefit can now be availed till 31 March 2021.
Applicable to both new FD and old FD renewal
Under SBI vcare deposit, the benefit of higher interest will be available on both opening of new FD account or renewal of old FD. However, the extra premium being paid will not be paid in the case of FD premature withdrawal. At present, senior citizens are getting interest ranging from 3.40 per cent to 6.20 per cent per annum on retail FDs below Rs 2 crore in SBI.
