SBI Senior Citizen FD Plan: Planning a stable income after retirement is a top priority for most senior citizens. SBI’s latest Fixed Deposit (FD) scheme is specially curated for retirees, ensuring financial peace of mind with monthly interest payouts ranging from ₹10,000 to ₹50,000. This government-backed initiative is more than just a savings plan—it’s a financial shield for your golden years.
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Key Benefits of SBI’s Senior Citizen FD Plan
| Feature | Details |
|---|---|
| Higher Interest | Exclusive rates for senior citizens |
| Monthly Payout | Steady income ranging from ₹10,000 to ₹50,000 |
| Tax Benefits | Deductions under Section 80C of the Income Tax Act |
| Flexible Tenure | Choose from 1 to 10 years |
| Hassle-Free Application | Apply online, via app, or at the branch |
| Safety & Trust | SBI’s government backing ensures complete security |
Tailored Benefits Just for Senior Citizens
SBI understands that senior citizens need more than just security—they need comfort. The plan features higher interest rates, easy access, and monthly income options. You also get to choose the tenure that best matches your financial goals, along with tax-saving benefits under Section 80C. All this makes it a flexible and rewarding option for retirees.
How the Monthly Interest Model Works
The concept is simple: invest a lump sum in the FD plan and earn interest monthly. You retain the principal while enjoying regular returns without dipping into your savings. Your age (60+), investment amount, and selected tenure will determine the interest rate and monthly payout. SBI ensures transparency and no hidden charges during this process.
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Interest Rates & Monthly Payouts at a Glance
Here’s a snapshot of how much you can earn with different investments and tenures:
| Tenure (Years) | Interest Rate (%) | Investment (₹) | Monthly Payout (₹) |
|---|---|---|---|
| 1 | 6.5 | 10 Lakhs | 65,000 |
| 2 | 6.75 | 10 Lakhs | 67,500 |
| 5 | 7.5 | 20 Lakhs | 1,50,000 |
| 10 | 7.75 | 50 Lakhs | 3,87,500 |
Simple Application Process
Applying for this FD is effortless and accessible. You can apply online through SBI’s website or mobile app. Prefer offline? Visit your nearest SBI branch. No complex documentation or confusing procedures. It’s designed to ensure that retirees don’t face hurdles in accessing their savings.
Understand the Tax Side Clearly
Though the interest earned is taxable, SBI’s FD offers tax deductions up to ₹1.5 Lakhs under Section 80C. If interest earnings exceed ₹40,000 annually, TDS applies. You may also submit Form 15H to avoid TDS if your total income is within non-taxable limits—a valuable tip for maximizing returns.
SBI’s Senior Citizen FD Plan – FAQs
A minimum deposit of ₹10,000 is required to start the FD plan.
Senior citizens receive monthly interest payouts based on their deposit and tenure
Yes, premature withdrawals are allowed, but may involve a penalty or reduced interest.