SBI FD for Senior Citizens : In a major financial relief for senior citizens, the State Bank of India (SBI) has revised its Fixed Deposit (FD) scheme to offer attractive interest rates and flexible investment options. With rising inflation and cost of living, senior citizens often look for safe and high-return investments. SBI’s latest FD offerings can generate a stable monthly income ranging from ₹10,000 to ₹50,000 based on the amount invested. Here’s a detailed look into the new FD rules, interest rates, and how much you need to deposit to get these returns.
Key Features of SBI FD for Senior Citizens
- Exclusively for citizens aged 60 years and above
- Additional 0.50% interest rate over regular FD rates
- Tenure ranges from 7 days to 10 years
- Monthly/Quarterly/Annual interest payout options
- Tax-saving FD option available (5-year lock-in)
- Premature withdrawal allowed with conditions
- Nomination and auto-renewal facilities available
Eligibility Criteria for SBI Senior Citizen FD
- Applicant must be an Indian resident aged 60 years or above
- Must have a valid SBI savings or current account
- KYC documents like Aadhaar, PAN card, and proof of age are mandatory
- Joint account can be opened (first holder must be a senior citizen)
Interest Rates for Senior Citizens (As of May 2025)
| FD Tenure | Regular Rate | Senior Citizen Rate |
|---|---|---|
| 7 days to 45 days | 3.00% | 3.50% |
| 46 to 179 days | 4.50% | 5.00% |
| 180 to 210 days | 5.25% | 5.75% |
| 211 days to < 1 year | 5.75% | 6.25% |
| 1 year to < 2 years | 6.80% | 7.30% |
| 2 years to < 3 years | 7.00% | 7.50% |
| 3 years to < 5 years | 6.50% | 7.00% |
| 5 years to 10 years | 6.50% | 7.50% |
Monthly Income Plan: Deposit vs Monthly Interest Table
| Deposit Amount | Interest Rate (7.5%) | Approx Monthly Interest |
|---|---|---|
| ₹1,60,000 | 7.5% p.a | ₹1,000 |
| ₹3,20,000 | 7.5% p.a | ₹2,000 |
| ₹8,00,000 | 7.5% p.a | ₹5,000 |
| ₹16,00,000 | 7.5% p.a | ₹10,000 |
| ₹24,00,000 | 7.5% p.a | ₹15,000 |
| ₹40,00,000 | 7.5% p.a | ₹25,000 |
| ₹64,00,000 | 7.5% p.a | ₹40,000 |
| ₹80,00,000 | 7.5% p.a | ₹50,000 |
Note: These are approximate values based on monthly payout; actual interest may vary slightly depending on payout option and compounding.
How to Apply for SBI Senior Citizen FD
- Visit the nearest SBI branch with ID proof, age proof, and passport-size photo
- Fill out the FD application form and select the desired tenure and interest payout option
- Alternatively, apply online via SBI YONO App or Internet Banking
- Choose ‘Senior Citizen FD’ while opening the FD
- Confirm investment and get FD receipt instantly
Benefits of SBI Senior Citizen FDs
- Assured returns with zero market risk
- Flexible tenure from 7 days to 10 years
- Preferential interest rates for senior citizens
- Monthly income option helps manage regular expenses
- Trusted and secured by India’s largest public-sector bank
Tax Implications and TDS Rules
- Interest earned on FDs is taxable as per individual income tax slab
- TDS (Tax Deducted at Source) applicable if interest exceeds ₹50,000 in a financial year for senior citizens
- Submit Form 15H to avoid TDS deduction (if total income is below taxable limit)
- 5-Year Tax Saving FD option qualifies for deductions under Section 80C
Tips Before Investing in SBI Senior Citizen FD
- Choose longer tenure for higher returns
- Prefer monthly payout option if you rely on FD for regular income
- Diversify across multiple FDs with different maturity periods
- Ensure to update nominee details to avoid legal hassles
- Compare rates periodically as they may change with RBI policy updates
SBI’s Senior Citizen FD scheme is an excellent way to secure a monthly income stream while ensuring safety of capital. Whether you are looking to earn ₹10,000 or ₹50,000 every month, SBI offers the flexibility and reliability required by retirees. With attractive interest rates and minimal risk, this FD plan continues to be one of the most preferred options for senior citizens across India. Always assess your income needs, tax situation, and financial goals before locking your funds in a long-term deposit.