If a senior citizen is planning to open a new FD account, here is an opportunity to earn 0.80% more than a normal SBI FD investor. The State Bank of India (SBI) extended the special Fixed Deposit scheme for senior citizens from December 31, 2020 to March 31, 2021. As per SBI's official website — sbi.co.in, a senior citizen will get 50 bps more than a normal FD investor while under Senior Citizen Special FD Scheme, the FD account holder will get an additional 30 bps FD interest rate.
A special "SBI Wecare" Deposit for Senior Citizens introduced in the Retail TD segment wherein an additional premium of 30 bps (over & above the existing 50 bps) will be paid to Senior Citizens on their retail TD for '5 Years and above' tenor only. "SBI Wecare" deposit scheme stands extended till 31st March 2021," SBI mentioned on its website.
SBI Special FD Scheme
SBI special FD scheme for senior citizens will fetch 80 basis points (bps) interest rate above the rate applicable to the general public. At present, SBI gives 5.4% interest rate on five years FD for the general public. If a senior citizen puts a fixed deposit under the special FD scheme, then interest rate applicable to the FD will be 6.20%. However, this additional interest i.e. 30 bps under the special scheme for senior citizens will not be payable in case of premature withdrawal of such deposits. Therefore, if you opt for premature withdrawal of a FD under the scheme, your fixed deposit investment will fetch only 5.9% i.e. 50 bps above the general customers.
Features of SBI Senior Citizen Special FD Scheme
1. The account shall be opened with a minimum deposit of Rs 1,000 or any sum in multiple of Rs 1,000 not exceeding Rs 15 lakh.
2. The depositor may extend the account for a further period of three years after the maturity period of five years.
3. The deposit made under these rules shall bear interest as directed by Govt of India from time to time quarterly.
4. If the interest payable every quarter is not claimed by an account holder, such interest shall not earn additional interest.
5. The whole amount of deposit in a joint account shall be attributable to the first account holder only.
6. Both the spouses can open a single account and joint accounts with each other.
7. The depositor may nominate a person or more than one person.
8. Nomination made by the depositor can be cancelled or varied.
9. The deposit made at the time of opening of the account shall be paid on or after the expiry of five years or after the expiry of eight years where the account was extended from the date of the opening of the account.
10. Multiple withdrawals from an account shall not be permitted.
SBI Senior Citizen Special FD Scheme: Eligibility
- An individual may open an account in individual capacity, or jointly with spouse.
- NRI's & Hindu Undivided Family are not eligible to open an account under these rules.
- An individual who has attained the age of 60 years and above,
who has attained the age of 55 years or more but less than 60 years and who has retired on superannuation or otherwise on the date of opening an account.
- The retired personnel of Defence Services attaining the age of 50 years.
