SBI says under this new scheme, an additional 30 basis points (bps) premium will be payable for senior citizen’s retail term deposits with “5 Years & above” tenor only.
The ‘SBI Wecare Deposit’ scheme would be in effect upto 30 September 2020.
Thus, the effective rate of interest for retail term deposits of senior citizens will be:
- For FD with tenor ‘below 5 years’: 50 bps higher than the rate applicable for the general public.
- For FD with tenor ‘5 years & above’ (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.
Currently, SBI offers an interest rate between 4% to 6.20% on FDs maturing in 7 days to 10 years.