In a bid to cater to the financial needs of senior citizens, the State Bank of India (SBI) has been offering a special savings scheme known as the "SBI WeCare Deposit Scheme". Designed to provide additional financial security to elderly citizens, this scheme offers exclusive benefits for those aged 60 years and above. Originally introduced in 2020, the scheme is available for investment till September 30, 2023.
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Higher interest rates
Under the SBI WeCare Deposit Scheme, senior citizens can get enhanced interest rates on fixed deposits (FDs) with tenures of five years and above. Notably, these rates are substantially higher than what regular depositors receive. Senior citizens who invest in this scheme are entitled to a 0.50 percent higher premium over the already elevated 0.50 percent premium offered to resident senior citizens, totalling an additional 1 percent interest on their deposits.
Offering additional interest on term deposits, the scheme helps elderly individuals maintain a steady income stream, which is especially important during retirement.
Flexible investment tenures
Senior citizens can choose to invest in this special FD scheme for a minimum of five years or a maximum of 10 years. This flexibility ensures that individuals can tailor their investments to align with their financial goals and retirement plans.
Important note: No tax benefits
It's important to note that the SBI WeCare Scheme does not offer any tax benefits. While it provides enhanced interest rates, the scheme does not qualify for tax deductions under Section 80C of the Income Tax Act.
SBI Senior Citizen FD rates
SBI offers 0.50 percent higher interest rates on fixed deposits to senior citizens compared to regular FD rates. Regular FD interest rates vary between 3.50 percent and 7.50 percent for tenures ranging from 7 days to 10 years.
Here are the FD rates offered by SBI:
| General Public | Senior Citizen | |||
| Tenors | Rates w.e.f. 15/02/2023 | Annualised Yield | Rates w.e.f. 15/02/2023 | Annualised Yield |
| 7 days to 45 days | 3% | 3% | 3.5% | 3.5% |
| 46 days to 179 days | 4.5% | 4.5% | 5% | 5% |
| 180 days to 210 days | 5.25% | 5.35% | 5.75% | 5.88% |
| 211 days to less than 1 year | 5.75% | 5.88% | 6.25% | 6.4% |
| 1 Year to less than 2 years | 6.8% | 6.98% | 7.3% | 7.5% |
| 2 years to less than 3 years | 7% | 7.19% | 7.5% | 7.71% |
| 3 years to less than 5 years | 6.5% | 6.66% | 7% | 7.19% |
| 5 years and up to 10 years | 6.5% | 6.66% | 7.50% (Including additional premium of 50 bps under ”SBI We-care” deposit scheme) | 7.71% |
| 400 days (Special Scheme i.e. Amrit Kalash”) | 7.1% | 7.29% | 7.6% | 7.82% |
(Source: SBI website)
Additionally, SBI also offers the 'Amrit Kalash' FD scheme, which offers a specific tenure of 400 days. The interest rate offered is 7.10 percent for the general public, while senior citizens can get an interest rate of 7.60 percent. The scheme is valid till December 2023, according to the SBI website.
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