SBI Fixed Deposit for Senior Citizens: Amid nationwide lockdown because of Coronavirus, the State Bank of India has announced to provide more interest on fixed deposits to senior citizens till September 30
SBI Fixed Deposit for Senior Citizens: Amid nationwide lockdown because of Coronavirus, the State Bank of India has announced to provide more interest on fixed deposits to senior citizens till September 30 this year. In a statement on Thursday, the public sector bank said, “To safeguard the interests of Senior citizens in the current falling rate regime, the Bank introduces a new product ‘SBI Wecare Deposit’ for Senior Citizens in the Retail TD segment. Under this new product, an additional 30 bps premium will be payable for Senior Citizen’s Retail term deposits with “5 Years & above” tenor only. This scheme would be in effect up to September 30, 2020.” The effective new rates for Senior Citizens Fixed Deposit accounts are:
- For Retail FD of ‘below 5 years’ tenor: 50 bps higher than the rate applicable for the general public (no change in premium)
- For Retail FD of ‘5 years & above’ tenor (new product): 80 bps higher than the rate applicable for the general public (30 bps extra premium). This additional premium will not be payable in case of premature withdrawal of such deposits.
Thus, senior citizens depositing in FD account for 5 years or more will get 80 bps more interest than the general public.
Currently, the interest rates for five years and up to 10 years FDs below Rs 2 crore in SBI is 5.9 per cent for the general public. As per the latest SBI announcement, senior citizens can now book FDs at 6.7 per cent till September 30.
What senior citizens can get on Rs 1 lakh in 5, 10 years in SBI
– By booking FD of Rs 1 lakh in SBI for 5 years till September 30, senior citizens can earn 39,406 as interest amount and withdraw a total of Rs 1,39,406 after five years, as per official SBI maturity calculator.
– By booking FD of Rs 1 lakh in SBI for 10 years till September 30, senior citizens can earn 94,342 as interest amount and withdraw a total of Rs 1,94,342 after 10 years.
Apart from FD, senior citizens can also open the Senior Citizens Savings Scheme (SCSS) account in SBI or Post Office. SCSS currently offers 7.4 per cent interest per annum and matures in five years. Senior citizens may also like to explore some Post Office schemes which are offering higher interest than SBI FD for five years. The five-year National Savings Certificate in Post Office is currently offering 6.8 per cent interest.