Sbi Wecare Deposit
Known as SBI Wecare Deposit, the scheme provides an additional 30 basis points interest to senior citizens on their term deposits. However, tenor of such deposits must be at least 5 years. At present, SBI provides an additional 50 basis points interest to senior citizens on its term deposits of all tenors.
- Sbi Wecare Deposit
- Sbi Wecare Deposit Rates
- Sbi Wecare Deposit
- Sbi Wecare Deposit Scheme For Senior Citizens
- Sbi Wecare Deposit Interest Rate
SBI Wecare Deposit is a new term deposit scheme announced by the largest commercial bank in India for Senior Citizens. The SBI Wecare scheme is announced to protect the interest income earned by senior citizens on their term deposits, in the currently falling interest rate regime.
What prompted SBI to announce SBI Wecare Deposit scheme?
On 7th May, 2020 SBI announced a cut of 15 bps in its Marginal Cost of Funds Based Lending Rate (MCLR). Similarly, it also reduced interest rate on retail term deposits (below Rs 2 crores) by 20 bps for tenures up to three years. The reduction in interest rate on deposits is announced considering the overall liquidity available in the market and deposit position of the bank.
Majority of banks in India have been offering additional 50 bps interest to senior citizens over the deposit interest rate applicable for same tenure for public. SBI has been offering 50 bps interests as senior citizen benefits.
- SBI Wecare was launched in the retail term deposit segment wherein an additional premium of 30 bps was to be to Senior Citizens on their retail TD for five years and above tenor only.
- The SBI 'WECARE' Senior Citizens' Term Deposit scheme has been launched to provide the higher interest rate to senior citizens in the current falling interest rate scenario as this category of investors are usually dependent on interest income.
Though senior citizens have been receiving 50 bps (0.50%) interest more on their fixed deposits than that applicable to general public, the actual interest ratehas eroded substantially over the last few months due to consistent cuts in Repo rates by RBI and consequent cut in lending and deposit interest rates by banks. SBI through the new scheme offers some relief to senior citizens who are ready to lock in deposits for longer period. SBI safeguards the interest of senior citizens to some extent in the falling interest rate regime by offering additional 30 bps (0.30%) interest rate to senior citizens for deposits of 5 years and above. Total senior citizen benefit in interest rate offered for such deposits is 80 bps (0.80%).
Sbi Wecare Deposit
How much is the additional interest rate offered for deposits under SBI Wecare Deposit scheme?
So far, SBI has been offering additional 50 bps (0.50%) interest as senior citizen benefit on term depositsof all tenures. The same benefit of 50 bps will continue for term deposits below 5 years. The senior citizen benefit will be 80 bps (0.80%) for term deposits of 5 years and above under SBI Wecare Scheme. This 0.8% is inclusive of the now announced additional interest of 0.3%.
SBI Wecare Deposit scheme will be in existence till September 30,2020 for opening deposits and the deposits with the benefits can be opened from 12th May 2015.
The fixed deposit interest rate applicable on fixed deposits for public and senior citizens effective from 12th May 2020 will be as shown below:
| Period | Existing rate for public wef 28/3/20 | Revised rate for public wef 12/05/20 | Existing rate for Senior citizen wef 28/3/20 | Revised rate for senior citizen wef 12/05/20 |
| 7 days to 45 days | 3.50 | 3.30 | 4.00 | 3.80 |
| 46 days to 179 days | 4.50 | 4.30 | 5.00 | 4.80 |
| 180 days to 210 days | 5.00 | 4.80 | 5.50 | 5.30 |
| 211 days to less than 1 year | 5.00 | 4.80 | 5.50 | 5.30 |
| 1 year to less than 2 years | 5.70 | 5.50 | 6.20 | 6.00 |
| 2 yeras to less than 3 years | 5.70 | 5.50 | 6.20 | 6.00 |
| 3 years to less than 5 years | 5.70 | 5.70 | 6.20 | 6.20 |
| 5 years and upto 10 years | 5.70 | 5.70 | 6.20 | 6.50 |
Sbi Wecare Deposit Rates
Is the interest rate for senior citizens on SBI Wecare Deposit scheme is the best in the market?
The best interest rates offered by some of the other leading banks in India for public and senior citizens are provided below, for comparison.
| Bank | Period | Best interest rate offered for public – % | Best interest rate offered for senior citizens -% | Senior citizen benefit -% |
| HDFC Bank | 2 years 1 day to 10 years | 6.00 | 6.50 | 0.50 |
| Indus Ind Bank | 1 years to 1 year 2 days | 7.00 | 7.50 | 0.50 |
| Bank of Baroda | 1 year to 10 years | 5.70 | 6.20 | 0.50 |
| Federal bank | Above 1 year to 10 years | 6.25 | 6.75 | 0.50 |
| Punjab National Bank | 1 year to 10 years | 5.75 | 6.25 | 0.50 |
The table indicates that three banks HDFC Bank (6.50%), IndusInd Bank (7.50%) and Federal Bank( 6.75%) offer same/ better interest rates to senior citizens. However, the senior citizen benefit offered by them continue to be 0.5% compared to 0.80% announced by SBI.
Sbi Wecare Deposit
- SBI special FD scheme for senior citizens will be available till March-end
- SBI special FD scheme for senior citizens will fetch 80 bps interest rate above the rate applicable to the general public
State Bank of India (SBI) special fixed deposit scheme for senior citizens has been extended for the second time. In May, the country’s top lender had announced SBI ‘WECARE’ Senior Citizens’ Term Deposit scheme for senior citizens, which was initially till September. The scheme was launched to provide a higher interest rate to senior citizens in the current pandemic time. The special FD scheme for senior citizens will be available till March-end. Earlier the bank had announced that the scheme will be valid till 31st December.
Sbi Wecare Deposit Scheme For Senior Citizens
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 Citizen’s 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 for senior citizens: Latest interest rates
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%. 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.
SBI latest FD interest rates (below ₹2 crore) for general public
SBI FDs between 7 days to 10 years will give 2.9% to 5.4% to general customers. Senior citizens will get 50 basis points (bps) extra on these deposits. SBI had last revised its FD rates on 10 September.