In terms of investment, senior citizens trust Fixed Deposit the most. The reason for this is that most of the elderly do not want to take any kind of risk regarding money at this age, so they prefer schemes with safe investment and guaranteed returns.
Another advantage of FD is that you can invest in it for a term ranging from 45 days to 10 years. Different interest rates are given for different terms. Most banks offer 0.50% interest to senior citizens on FDs. But SBI is giving 1% extra interest to the elderly on an FD. In such a situation, they can get a good profit. Know about it here-
You will get benefit in this special scheme
We are talking about the WeCare FD scheme. The purpose of this special scheme of SBI is to secure the income of senior citizens by giving them additional interest on fixed deposits. Investment can be made in this for 5 years and 10 years. Currently, senior citizens are getting up to 7.50 percent interest on SBI’s WeCare scheme. But if you withdraw the money before time, then you will not be given the benefit of additional interest.
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Loan facility also
For this special fixed deposit of SBI, interest is paid at monthly, quarterly intervals. Interest is deposited in the customer’s account after deducting TDS. Senior citizens are also given the benefit of loan on this scheme. But if you want to invest in this scheme, then let us tell you that the benefit of the scheme can be availed only till 30 September 2024.
Why do banks give higher interest to senior citizens
Most banks include senior citizens in the list of priority customers. Banks consider them to be long term investors of low risk category. In such a situation, banks encourage senior citizens to invest by offering them higher interest rates. Due to higher interest rates, more and more elderly people invest money in that bank and the bank benefits from this.
