As the coronavirus pandemic rages on and income streams are disrupted due to governments having to lift and re-impose lockdowns, people have become wary of investing in high-risk financial instruments, especially those linked to the stock markets. Traditional investment avenues like term deposits, which offer a fixed return, are being viewed more favourably, especially among the vulnerable sections of the population. There is a high probability that the current climate of cynicism will continue to weigh in on the coming months.
SBI launches WeCare term deposit scheme for senior citizens The deposits under this scheme will attract 0.8 percent more than the interest rate applicable to the general public. Those interested. On Thursday, the State Bank of India (SBI) introduced a new scheme for senior citizens called 'SBI Wecare Deposit' for senior citizens in its retail term deposit segment. The scheme aims at.
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. 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 scheme is known as ‘SBI Wecare Deposit’, this will help senior citizens get higher interest rate on their money and to safeguard the interests of senior citizens in the current falling rate regime. Known as SBI Wecare Deposit,SBI has launched a special FD scheme for senior citizens in India.
The State Bank of India, which is the country’s largest bank, has launched a special fixed deposit scheme called the SBI WeCare Senior Citizens’ Term Deposit scheme, keeping in mind the needs of senior citizens. The scheme has been drafted with the objective of protecting the incomes of senior citizens by offering additional interest. Many senior citizens are dependent on interest incomes, and given the recent rate cuts on fixed deposits and savings bank accounts by the Reserve Bank of India due to the economic downturn spurred by COVID-19, the scheme can ease the anxieties caused by financial distress.
Recurring Deposit Sbi
Here are the salient features of the scheme.
Eligibility: The scheme is open to resident senior citizens more than 60 years of age. However, the scheme is not open to NRI senior citizens. Also, those interested will have to invest in the scheme before September 30, 2020, and it is also available on the renewal of fresh deposits and recurring deposits.
Deposit tenure: The minimum tenure is five years and the maximum is 10 years.
Interest rates: The deposits under this scheme will attract 0.8 percent more than the interest rate applicable to the general public. For instance, for a five-year deposit, SBI is currently offering an interest rate of 5.40% to the general public. A deposit made by a senior citizen under the WeCare scheme will earn an interest of 6.20%. It is important to note that if the fixed deposit interest rates as applicable to the general public change, the deposits under WeCare will reflect a corresponding change.
Payment of interest: For term deposits, investors can choose between monthly or quarterly interest payouts. For special term deposits, the interest will be paid on maturity and the interest amount will be adjusted against TDS and credited to the investor’s account.
TDS: For senior citizens, TDS is deducted if the total interest earned in a financial year is more than Rs 50,000. For calculating TDS, interest earned from fixed deposits, recurring deposits, and other deposits will be taken into account.
Loan facility: Senior citizens opting for SBI Wecare Deposit FD can also avail loans against their fixed deposits.
Sbi Wecare Deposit Online
Besides the loan care facility and the attractive interest rates, senior citizens can subscribe to this scheme in a hassle-free manner. Those interested can either visit an SBI bank branch while existing customers can simply log on to their net banking accounts or the bank’s YONO app.
Given the current concerns about rising medical costs due to the pressure exerted on the country’s health infrastructure by the coronavirus pandemic, fixed deposits rank higher than other investment for senior citizens. Term deposits provide regular income, remain immune to the turbulence of the stock markets and can be easily encashed during emergencies. A lucrative interest rate, as the one offered by WeCare term deposits, can ensure the elderly have a ready reservoir of funds at their disposal.