State Bank of India (SBI) has once again increased the interest rates on its special fixed deposit scheme for senior citizens. The VCare Senior Citizen Special FD scheme was launched on 20th May 2020 with an investment date until September 2020. The last time of investment was then extended to 31st March 2023, which has now been further extended until 30th June 2023.
The bank has introduced this special FD scheme for senior citizens so that they can benefit from higher interest rates along with the security of their income. Under this scheme, senior citizens will receive 50 to 100 basis points more interest than regular FDs. For a tenure of 5 to 10 years, the bank is offering an interest rate of 7.50 per cent. Customers can book this FD through bank branches, internet banking, or Yono.
SBI aims to protect the income of senior citizens by offering this special FD scheme. The bank is offering interest rates ranging from 3.5 per cent for a tenure of 7 to 45 days to above 7.50 per cent for a tenure of 5 to 10 years. Customers can also avail of a loan facility if they invest in this FD scheme. However, they will need to pay TDS charges on their income as per the Income Tax Department regulations.
ICICI Bank's special FD interest rate ends on 7th April, while HDFC and IDFC's special FDs have not been updated.
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