Special FD Scheme for Seniors SBI vs Post Office Seniors Savings Scheme

Older people expect to protect their lives after retirement. They expect their investment to provide regular income. Fixed Bank Deposits (FDs) and Senior Citizens Savings Scheme (SCSS) are excellent investment options for them taking into account the long-term factor that offers security with other additional benefits. Recently, the country’s leading lending institution, the State Bank of India (SBI), announced the extension of the SBI “WECARE” senior term deposit system for the elderly.

A comparison between SBI Senior Citizen FD Special and Post Office Senior Citizen Savings Scheme:

Interest rate

The Senior Citizen Savings Scheme currently offers an interest rate of 7.4% per annum This is the highest interest rate among various small savings schemes in India.

If a senior places a fixed deposit under the FD special scheme, the interest rate applicable to the FD will be 6.20%. This additional interest is 30 basis points under the special scheme for the elderly.

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The Senior Citizens Savings Scheme (SCSS) is a government-backed savings facility offered to Indian residents over the age of 60. The deposit expires after 5 years from the date of opening the account but can be extended once for a further 3 years.

The interest rate on the SBI Special Senior FD is payable only for senior retail term deposits with a duration of “5 years or more”.


SBI Wecare Deposit, a special FD program for seniors, was introduced in the retail term deposit segment to safeguard the interests of seniors. And this scheme is applicable until March 31, 2021.


The Senior Savings Program and the FD SBI Special Scheme can be opened by an individual over the age of 60.

The Savings Program for Senior Citizens is available through public and private sector banks and Indian post offices. As a government-backed savings tool, the terms and conditions applicable to the SCSS are the same, regardless of the bank / post office you invest through.

The SBI Wecare deposit is only applicable to senior SBI account holders.

Early withdrawal

Early withdrawal of the Senior Savings Plan is permitted but penalties apply. The sanctions in case of premature exit from SCSS are as follows:

1.5% of the deposit amount deducted as a penalty if you exit the program before the completion of 2 years from the date of opening the account.

1% of the SCSS deposit deducted as a penalty if the exit from the scheme occurs between 2 years and less than 5 years from the date of opening the account

Early withdrawal of the FD SBI special scheme for the elderly is allowed, but penalties are applicable. Additional premium of 30 basis points not payable in case of early withdrawal and a penalty of 0.5% may be applied.

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