Jan 15, 2021 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. State Bank of India has started a new scheme “SBI WECARE”. The scheme is for Senior Citizens. It is term deposit scheme with higher returns. As per scheme Senior Citizens can save their income with higher interest on their term deposits. They can deposit at monthly or quarterly for minimum 5 year to maximum 10 year. A couple of days back, SBI has launched a new fixed deposit scheme with the name “SBI Wecare Fixed Deposit” for senior citizens. SBI indicated that they have launched this new FD scheme to safeguard falling interest rates for Sr. While there are several other saving schemes for Senior Citizens, they all have few limitations.

A few days back SBI launched the new senior citizen deposit scheme branding it as an SBI WeCare Deposit. Between SBI Wecare Deposit Vs Senior Citizens Savings Scheme (SCSS), which is the best one you can choose?

What are the features of the SBI WeCare Deposit Scheme for Senior Citizens?

# This scheme is meant for Senior Citizens whose age is 60 years and above.

# Available for Resident Indians ONLY. This scheme is not meant for NRIs.

# You can open this deposit only for 5 years to 10 years term.

# It’s a special scheme launched to help seniors during the COVID-triggered interest rate reduction. Hence, this is a limited period scheme. The scheme is open between May 12, 2020, and September 30, 2020.

# The current interest rate for SBI WeCare is 0.80% higher than the normal FD rates. Usually, the interest rate difference between normal citizens to senior citizens is 0.50%. However, for this SBI WeCare Deposits (5 years and 10 years deposits), they are higher of 80 BPS. Hence, the current interest rate on SBI WeCare Deposit is 6.5%.

I have highligted in yellow with respect to the applicable interest rate on SBI WeCare Deposit.

# Premature withdrawal is allowed. However, the additional 0.30% benefit for 5 years and 10 years deposit will not be payable. Hence, if you tried to withdraw before maturity, then you will get the interest rate of 6.2%

# Interest payment is either monthly/quarterly or at maturity.

# There is no tax benefit under this scheme.

# TDS will be deducted on the interest payment if the total interest (from all FDs, RD, etc. but not savings account) paid in a financial year exceeds Rs 50,000.

# You can avail a loan on this Deposit.

SBI WeCare Deposit Vs Senior Citizens Savings Scheme (SCSS) – Which is the best?

Now let us understand the difference between SBI WeCare Deposit Vs Senior Citizens Savings Scheme (SCSS).

# The biggest difference is an interest payout. The current interest rate on the Senior Citizens Savings Scheme (SCSS) is at 7.4%. However, the SBI WeCare Deposit offers you at 6.5%. It is almost a 0.9% difference.

# SBI WeCare Deposit is available for up to Rs.2 Cr. However, the Senior Citizens Savings Scheme (SCSS) maximum limit is Rs.15 lakh ONLY.

# No Income Tax Benefit if you invest in SBI WeCare Deposit. However, the money you deposit in the Senior Citizens Savings Scheme (SCSS) is eligible for deduction under Sec.80C.

# Interest payment in SBI WeCare Deposit is on monthly/quarterly or at maturity. However, in the case of the Senior Citizens Savings Scheme (SCSS), it is on a quarterly basis.

# If you try to break the SBI WeCare Deposit before maturity, then you will end up earning the interest rate of 6.2%. However, in case of Senior Citizens Savings Scheme (SCSS), the account is closed after the expiry of 1 year but before the expiry of 2 years from the date of opening of the account, an amount 1.5% of the deposit shall be deducted and the balance paid to the depositor. In case the account is closed on or after the expiry of 2 years from the date of opening of the account, an amount equal to 1% of the deposit shall be deducted and balance paid to the depositor.

# Loan facility is available in the case of SBI WeCare. But you can’t avail the loan in case of Senior Citizens Savings Scheme (SCSS).

# In the case of SBI WeCare Deposit, the term available is 5 years to 10 years. However, in the case of SCSS, it is 5 years only. Also, in the case of SCSS, you are allowed to extend for one more time only once.

Refer the complete details about Senior Citizens Savings Scheme (SCSS) at our post “Post Office Senior Citizen Scheme (SCSS)-Benefits and Interest Rate“.

Conclusion:-Considering all the above features, I don’t think it is worth to invest in SBI WeCare FD. Instead, I feel the Senior Citizen Savings Scheme (SCSS) is far better.

Refer our latest posts:-

• SBI WeCare Deposit Vs Senior Citizens Savings Scheme (SCSS) – Which is the best?
• Atmanirbhar Bharat – 5 Benefits for Individuals
• How to correct/update Bank details in EPF/UAN online?

• Best Short Term Investment Plans 2021Posted on: 2-Mar-2021
• Best Tax Free Bonds 2021 in IndiaPosted on: 20-Feb-2021
• LIC Bima Jyoti (Plan No.860) – Features, Benefits and ReviewPosted on: 17-Feb-2021
• IRDA Life Insurance Claim Settlement Ratio 2021Posted on: 11-Feb-2021
• Budget 2021 – All about the Taxation of ULIPsPosted on: 10-Feb-2021
• Investing more than Rs.2.5 Lakh in EPF is still the BEST strategy!!Posted on: 2-Feb-2021

View All Articles

• 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.

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.

Recurring Deposit Sbi

SBI latest FD interest rates (below ₹2 crore) for general public

Sbi Wecare Deposit

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.

Sbi Wecare Deposit Interest Rate