FDs are a risk-free investment, where all of your money is secure.
The common belief used to be that government banks do not generate much interest in Fixed Deposits (FD) compared to private sector banks or small finance banks. However, this notion has changed as government banks now offer competitive returns on Fixed Deposits as well. For instance, the State Bank of India (SBI), the country’s largest public sector bank, runs a special investment scheme for senior citizens called “We Care” (SBI WeCare Special FD), which provides attractive benefits.
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Investing in this FD scheme allows for the direct doubling of money. The bank introduced the WeCare FD (SBI WeCare Fixed Deposit) specifically for senior citizens to safeguard their funds during the Covid pandemic and offer higher returns with the most competitive interest rate. The bank has extended the availability of this special FD scheme to senior citizens until 30 September 2023. Here are the benefits of the Scheme:-
Opportunity to get 7.50 per cent interest
As per the SBI website, senior citizens are eligible for an additional 0.50% interest rate. This scheme offers a 7.50% interest rate on Fixed Deposits (FDs) with tenures ranging from 5 years to 10 years. You can book an FD under this scheme using net banking, the Yono app, or by visiting the branch.
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Interest on the FD can be received on a monthly, quarterly, half-yearly, or annual basis. However, please note that the interest on the FD will be available after deducting TDS. For regular Fixed Deposits, the interest rates range between 3.50% and 7.50% for tenures ranging from 7 days to 10 years.
Investing in this FD scheme will result in your money doubling in 10 years. For instance, if you invest Rs 5 lakh, after a decade, you will receive more than Rs 10 lakh. Essentially, you will earn Rs 5.5 lakh as interest over the 10 years, as the bank offers a 6.5 per cent interest rate on regular FDs with a duration of 10 years.
SBI also extended the last date of the Amrit Kalash FD scheme
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Additionally, SBI has prolonged the duration of the Amrit Kalash Special FD scheme, which provides the highest interest rate to both senior citizens and other customers in comparison to FDs with different tenures.
