Sbi Wecare Deposit
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?
“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. SBI WeCare Deposit for Senior Citizens. SBI WeCare Deposit Scheme is for senior citizens for retail term deposits. In this scheme, an additional premium of 30 bps, over and above the additional 50 bps, will be paid for tenure of 5 years and above. This is only available for a limited period of time till 31 March 2021. May 11, 2020 Note: The above-stated SBI FD interest rates are applicable on deposits below Rs. 2 crores with effect from 8th January 2021.Additional interest of 0.30% (over & above the existing 0.50%) is offered to senior citizens under the “SBI WeCare” Deposit (retail domestic term deposits) scheme. It is effective from 7th May 2020 to 31st March 2021. Features of the SBI Senior Citizen Savings Scheme. Customers of the State Bank of India can avail this scheme and enjoy attractive Senior Citizen Saving Scheme SBI interest rate against it. Features of SBI Senior Citizen Savings Scheme include – The minimum deposit amount for this scheme is Rs.1000, and the deposit cannot exceed Rs.15 lakh.
# 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.
Play n go slots list. # 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%.
King jack casino 20 free spins no deposit. 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.
Sbi Wecare Deposit Online
# 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.
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