SBI New Fixed Income Scheme – The State Bank of India (SBI), India’s largest public sector bank, has rolled out a new fixed income scheme tailored specifically for senior citizens. With safety, reliability, and high returns as its key features, this scheme offers a solid return of ₹44,000 on a deposit of ₹1 lakh over a fixed term. The plan is designed to provide financial stability for retirees, while ensuring the complete security of the principal amount. Let’s explore the benefits, eligibility, interest rates, tenure options, and application process of this new SBI scheme in detail.
What Is SBI’s New Fixed Income Scheme for Senior Citizens?
This special scheme is a high-interest Fixed Deposit (FD) product introduced by SBI for senior citizens aged 60 and above. The plan aims to provide a dependable income source post-retirement with enhanced interest rates and flexible tenure options.
Key Features of the Scheme:
- Targeted for individuals aged 60 years and above
- Offers higher interest rates than standard FDs
- Guaranteed returns with zero risk to principal
- Flexible deposit amounts starting from ₹1,000
- Special interest rate slab for ₹1 lakh deposits
- Monthly, quarterly, or cumulative interest payout options
How Much Return Will You Get on ₹1 Lakh Deposit?
Here’s a breakdown of the projected earnings on ₹1 lakh fixed deposit under the scheme:
| Deposit Amount | Tenure | Interest Rate (Approx.) | Total Return | Maturity Amount |
|---|---|---|---|---|
| ₹1,00,000 | 5 Years | 8.00% p.a. | ₹44,000 | ₹1,44,000 |
| ₹1,00,000 | 3 Years | 7.60% p.a. | ₹24,800 | ₹1,24,800 |
| ₹1,00,000 | 2 Years | 7.40% p.a. | ₹15,300 | ₹1,15,300 |
| ₹1,00,000 | 1 Year | 7.20% p.a. | ₹7,200 | ₹1,07,200 |
| ₹50,000 | 5 Years | 8.00% p.a. | ₹22,000 | ₹72,000 |
| ₹1,50,000 | 5 Years | 8.00% p.a. | ₹66,000 | ₹2,16,000 |
| ₹2,00,000 | 5 Years | 8.00% p.a. | ₹88,000 | ₹2,88,000 |
Eligibility Criteria and Required Documents
To benefit from this fixed income scheme, the following conditions must be fulfilled:
Who Can Apply:
- Indian residents aged 60 years and above
- Individuals with a valid savings account with SBI
- Retired employees drawing pension through SBI accounts
Documents Required:
- Aadhaar Card
- PAN Card
- Age Proof (if not mentioned in Aadhaar)
- Passport-size photograph
- Existing SBI account details or passbook
How to Apply for the SBI Senior Citizen FD Scheme
Applying for this FD scheme is quick and simple. SBI has ensured both offline and digital convenience for senior customers.
Offline Process:
- Visit the nearest SBI branch
- Carry your documents and passport-size photos
- Fill the Fixed Deposit application form
- Deposit your amount via cheque or cash
- Choose the tenure and interest payout option
Online Process via YONO App or Net Banking:
- Log in to SBI Net Banking/YONO app
- Select ‘Fixed Deposit’ under deposit services
- Choose ‘Senior Citizen FD’
- Enter deposit amount, tenure, and payout mode
- Confirm and complete the transaction
Top Benefits of SBI Fixed Income Scheme for Senior Citizens
The scheme comes packed with attractive benefits, making it an ideal choice for post-retirement financial planning.
Key Advantages:
- Assured returns with no market-linked risks
- Higher interest rate than regular FDs
- Tax deduction under Section 80C for deposits up to ₹1.5 lakh
- Premature withdrawal allowed under certain conditions
- Auto-renewal facility available
- Monthly interest payout option ensures regular income
- Nomination facility included for safety of funds
Comparison with Other Senior Citizen FDs
To help you make an informed decision, here is a comparison of SBI’s scheme with other banks offering senior citizen fixed deposits:
| Bank Name | Interest Rate (5 Years) | Minimum Deposit | Premature Withdrawal | Monthly Payout Option |
|---|---|---|---|---|
| SBI | 8.00% | ₹1,000 | Yes | Yes |
| HDFC Bank | 7.75% | ₹5,000 | Yes | Yes |
| ICICI Bank | 7.50% | ₹10,000 | Yes | Yes |
| Bank of Baroda | 7.90% | ₹1,000 | Yes | Yes |
| Axis Bank | 7.70% | ₹5,000 | Yes | Yes |
| Canara Bank | 7.80% | ₹1,000 | Yes | Yes |
| PNB | 7.60% | ₹1,000 | Yes | Yes |
SBI’s scheme stands out due to its higher interest rate, low entry threshold, and solid trust factor.
Tax Implications on Fixed Deposit Returns
It’s essential for senior citizens to understand the tax rules before investing:
- Interest income from FDs is taxable under “Income from Other Sources”
- TDS is deducted if interest exceeds ₹50,000 in a financial year
- You can submit Form 15H to avoid TDS if total income is below taxable limit
- Tax benefits under Section 80C on deposits up to ₹1.5 lakh per year
SBI’s new fixed income scheme is a golden opportunity for senior citizens looking for a safe and rewarding investment. With a ₹1 lakh deposit, one can earn up to ₹44,000 over 5 years – a steady and predictable source of income post-retirement. Backed by the credibility of SBI, this scheme is ideal for retirees who want peace of mind along with assured financial returns.
Frequently Asked Questions (FAQs)
1. What is the current interest rate offered to senior citizens under SBI’s scheme?
The scheme offers up to 8.00% interest for a 5-year fixed deposit. Rates may vary based on tenure and RBI guidelines.
2. Is premature withdrawal allowed in this scheme?
Yes, premature withdrawal is allowed but may attract a small penalty or lower interest rate as per SBI policy.
3. Can I open this fixed deposit online through YONO or SBI Net Banking?
Yes, eligible senior citizens can open this FD online using the YONO app or SBI Net Banking portal.
4. Will I receive interest every month or at the end of tenure?
SBI allows both options – you can choose monthly/quarterly payouts or opt for cumulative interest at maturity.
5. Is there any age relaxation in this scheme for early retirees?
No, the scheme is strictly for individuals aged 60 years and above. Early retirees below 60 are not eligible.