If you are thinking of getting an FD in the name of your parents or an elder in the house, then you can invest in the WECARE Deposit Scheme of State Bank of India (SBI). This scheme is specially for senior citizens.
SBI WECARE: If you are thinking of getting an FD in the name of your parents or an elder in the house, then you can invest in the WECARE Deposit Scheme of State Bank of India (SBI). This scheme is specially for senior citizens. In this you will get more interest than ordinary FD. Along with this, the scheme has many benefits. Let us know about this scheme in detail.
What is SBI ‘WECARE’ scheme?
State Bank of India (SBI) has launched a special fixed deposit scheme for senior citizens, named SBI ‘WECARE’. Its goal is to secure their income. The scheme aims to provide higher rate of interest on term deposits to people above the age of 60 years. In September, it has been announced to extend the scheme till March 2022.
Rate of interest
Under this scheme, senior citizens get an additional premium of 30 basis points. This is in addition to the additional benefit of 50 basis points available to senior citizens in a normal FD. With this, the total additional interest they get becomes 80 basis points.
Who can invest?
Any senior citizen of the age of 60 years or above can invest in this scheme.
Investment period
One has to invest in SBI’s Wecare scheme for at least 5 years. The maximum investment period has been fixed at 10 years.
Scheme Features
- In SBI’s Wecare scheme, an additional interest of 0.80 percent is available on FD.
- Under this scheme, interest on FD is paid at monthly or quarterly intervals. Interest is credited to the customer’s account.
- The benefit of this scheme can be taken through net banking, YONO app or through the branch of the app.
- Loan facility is also available in the scheme.
- TDS on the amount deposited in the scheme will remain at the appropriate rate under the Income Tax Act.
- The scheme is available on fresh deposits and renewal of maturing deposits.
- The benefit of the scheme can be availed on deposits of less than Rs 2 crore.
- Under the scheme, if you withdraw the deposit amount before maturity, no additional premium of 0.30 per cent will be paid.
- Withdrawals before maturity will also attract a penalty of 0.50 per cent.
