Know Your FD Rate: SBI WeCare FD account deadline ends soon; compare estimated returns on Rs 5 lakh, Rs 7 lakh, Rs 10 lakh investments in this limited-period scheme (with explanation)
Know Your FD Rate: State Bank of India (SBI) offers a wide array of limited-period fixed deposit (FD) schemes with special interest rates. One such scheme is the ‘SBI We Care’ FD, which currently provides annual returns of 7.5 per cent for senior citizens, according to the PSU bank's website, sbi.co.in. In April 2024, SBI—which offers FD tenures ranging from 7 days to 10 years—extended the deadline to open a We Care FD account to September 30. Read on to learn more about this special FD scheme, SBI We Care, with examples.
Know Your FD Rate: Did you know that the State Bank of India (SBI), the country’s largest lender, offers a variety of limited-period fixed deposit (FD) investment schemes with special interest rates? One such scheme is the ‘SBI We Care’ FD, which currently provides annual returns of 7.5 per cent for senior citizens, according to its corporate website—sbi.co.in. In April 2024, the state-run lender—which offers fixed deposit tenures ranging from 7 days to as long as 10 years—extended the deadline to open a We Care FD account to September 30, 2024. Can you guess the maturity amount at the end of 5 years and 10 years under the SBI We Care FD scheme?
Here is every important detail that you need to plan your investment in this special FD scheme, SBI We Care, with examples.
SBI We Care FD Scheme deadline ends soon | Key things to know
What is the SBI We Care FD scheme and who is it for?
Introduced by SBI in 2020, SBI We Care is a special term deposit scheme meant for senior citizens. It provides a higher interest rate than its normal FDs of similar maturities.
The FD has seen a number of extensions since its introduction in the COVID year.
SBI We Care FD Scheme deadline ends soon | Key things to know
What is the deposit period of SBI We Care FD?
The FD account allows two maturity options: 5 years and 10 years.
SBI We Care FD Scheme deadline ends soon | Key things to know
Senior citizen depositors can choose from two intervals of interest payment under SBI We Care: monthly and quarterly.
Upon maturity, the FD account credits the corpus to the SBI customer's bank account.
SBI We Care FD Scheme deadline ends soon | Key things to know
How to set up an SBI We Care FD account?
The special FD account is available at SBI branches, as well as through internet banking and the lender's mobile app, Yono.
SBI We Care FD Scheme deadline ends soon | Key things to know
Now, let's get to the calculations.
What will be the maturity amounts for investments of Rs 5 lakh, Rs 7 lakh, and Rs 10 lakh in the SBI We Care fixed deposit scheme?
At the current rate of interest, a lump sum of Rs 5 lakh in the SBI We Care scheme will yield interest of an estimated Rs 2,24,974.
This means that the final corpus, at the end of the minimum lock-in period of 5 years, will be Rs 7,24,974 (principal plus interest)
SBI We Care FD Scheme deadline ends soon | Key things to know
Similarly, a lump sum investment of Rs 7 lakh will grow into Rs 10,14,964 over 5 years (with the principal of Rs 7 lakh and interest of Rs 3,14,964).
SBI We Care FD Scheme deadline ends soon | Key things to know
Similarly, an investment of Rs 10 lakh in the SBI We Care scheme will yield interest of 4,49,948 in the 5 year option, leaving the depositor with an estimated corpus of Rs 14,49,948.
SBI We Care FD Scheme deadline ends soon | Key things to know
An investment of Rs 5 lakh in the scheme will grow into an estimated Rs 10,51,175 in the maximum maturity period of 10 years (including interest of Rs 5,51,175).
SBI We Care FD Scheme deadline ends soon | Key things to know
Similarly, an investment of Rs 7 lakh will grow into an estimated Rs 14,71,644 in the 10-year maturity option (including interest of Rs 7,71,644).
SBI We Care FD Scheme deadline ends soon | Key things to know
Similarly, a Rs 10 lakh lump sum investment in the scheme will grow into an estimated Rs 21,02,349 in 10 years (including interest of Rs 11,02,349).
SBI We Care FD Scheme
Please note that these are estimated returns based on the current interest rate and compounding frequency.
Additionally, the maturity amount is transferred after deducting TDS, as stated on the bank's website.