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Discover SBI’s Exciting FD Face-off: Seniors vs. Everyone – Who Gets the Best Interest Rates?

Comparing SBI’s Wecare Senior Citizen FD Scheme and SBI’s Amrit Kalash FD Scheme:

SBI, India’s largest public sector bank, presents two distinct Fixed Deposit (FD) schemes with appealing interest rates across various tenures. These schemes cater to different demographics: the SBI Wecare Senior Citizen FD Scheme is tailored for senior citizens, while the SBI Amrit Kalash FD Scheme is open to the general public as well as senior citizens.

The specialized FD scheme for senior citizens falls under the category of Domestic Term Deposits. It spans a Minimum Deposit Period of 5 years and a Maximum Deposit Period of 10 years. This scheme also offers a loan facility and allows for Tax Deducted at Source (TDS) as per the applicable Income Tax Act rates. For senior citizens, an additional premium of 30 basis points (bps) is provided over the existing premium of 50 bps, resulting in an 80 bps premium over the card rate for the general public.

Interest payments for the Term Deposit occur at monthly or quarterly intervals, while the Special Term Deposit ensures that interest, net of TDS, is credited to the customer’s account upon maturity.

The SBI Wecare Senior Citizen FD Scheme, introduced in May 2020 with an original maturity date of September 2020, has undergone multiple extensions, the most recent being until September 30, 2023. The scheme was launched with the objective of safeguarding senior citizens’ income by offering extra interest on their Term Deposits.

SBI has extended the application deadline for the 400-day tenor Amrit Kalash Deposit Scheme. The initial cutoff of August 15, 2023, has been pushed to December 31, 2023, as conveyed in a circular. The SBI Amrit Kalash Deposit FD scheme presents an interest rate of 7.10 percent, with senior citizens benefiting from a 7.60 percent interest rate on their FDs.

The SBI Amrit Kalash Deposit Scheme is accessible to various groups, including:

i) Individuals with Domestic Retail Term Deposits, encompassing NRI Rupee Term Deposits (below Rs 2 crore) ii) New and Renewal Deposits iii) Term Deposit and Special Term Deposit categories

Both schemes offer distinct advantages to their respective target groups, allowing customers to choose the one that best aligns with their financial goals and preferences.

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