


SBI announced a premium interest rate for senior citizens
With lowered expectations on interest rates for borrowing the interest rate offered by banks for depositors is also expected to get lowered. This might not be happy for fixed deposit investors, especially retired people who do not wish to invest in risky assets and face capital erosion. They might also be dependent upon this income to meet their expenses.
SBI is also the largest aggregator of deposits than any other bank in India. To address the concern of senior citizen SBI has launched a new product called “SBI Wecare Deposit”. Under this product, the Bank offers an additional 30 basis point premium interest for senior citizens in the retail term loan segment. This is available for senior citizens who are willing to deposit for a tenor of 5 years and above. This scheme would be effective up to September 30.
It slashed the retail deposit interest rate by 20 basis points for deposits with tenor of up to 3 years. The bank in its statement said the action was in view of adequate liquidity in the system.
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