The country’s largest state-run State Bank of India (SBI) has today launched the ‘SBI VCare Deposit’ scheme for senior citizens. Under this, senior citizens will get an additional premium interest of 30 basis points if deposited over a period of five years or more. Special features of the scheme:
- The scheme will continue till 30 September 2020.
- Retail term deposits of less than five years will get 0.50 percent more interest than ordinary citizens.
- Retail term deposits of more than five years will get 0.80 percent more interest than ordinary citizens. The new product is getting an additional premium of 30 basis points.
- However, this premium will not be applicable in the event of premature withdrawal of the deposit.
SBI’s two big decisions: reduction in MCLR, reduced interest rate on FD, will affect you
Changes on FD rate Today, SBI has also reduced the interest on fixed deposits (FD). SBI has announced on fixed deposits (less than two crore rupees). The new rates will be applicable from 12 May 2020. Retail term deposits of three years duration will now get 20 basis points less interest. It was cut for the second time in two months. Presently, SBI pays four to 6.20% interest on FDs ranging from seven days to 10 years.