SBI FD Scheme – In a surprising financial move aimed at promoting family-centric savings, the Indian government has launched the “Family First” Scheme in partnership with SBI. Under this initiative, individuals can deposit a lump sum of ₹2,22,222 in their spouse’s name in a specially structured fixed deposit and earn over 8% annual interest. This plan not only boosts household income but also empowers homemakers with independent financial security. Let’s dive deep into how this scheme works, what makes it special, and how you can take advantage of this limited-period opportunity.
What is the “Family First” SBI FD Scheme?
The “Family First” Fixed Deposit Scheme is a new collaborative initiative introduced by the Government of India in association with the State Bank of India (SBI). It’s designed to promote long-term financial security for families, particularly through wives and homemakers.
Key Features of the Scheme:
- Deposit ₹2,22,222 in your wife’s SBI account
- Get more than 8% interest per annum
- FD tenure between 3 to 5 years
- Monthly, quarterly, or yearly payout options
- Nomination facility available
- Tax benefits under Section 80C (on principal) and Section 80TTB (for senior citizens)
How Much Can You Earn from ₹2,22,222 Deposit?
Let’s take a closer look at how much interest your family can earn from this FD when you invest ₹2,22,222. Here’s a sample table showing earnings across different tenures.
SBI FD Earnings Under “Family First” Scheme
| FD Tenure | Principal Amount | Interest Rate | Maturity Amount | Total Interest Earned |
|---|---|---|---|---|
| 3 Years | ₹2,22,222 | 8.1% | ₹2,81,564 | ₹59,342 |
| 4 Years | ₹2,22,222 | 8.2% | ₹2,97,803 | ₹75,581 |
| 5 Years | ₹2,22,222 | 8.3% | ₹3,15,790 | ₹93,568 |
| 3 Years (Senior) | ₹2,22,222 | 8.4% | ₹2,83,101 | ₹60,879 |
| 4 Years (Senior) | ₹2,22,222 | 8.5% | ₹3,00,998 | ₹78,776 |
| 5 Years (Senior) | ₹2,22,222 | 8.6% | ₹3,20,545 | ₹98,323 |
| Monthly Payout | ₹2,22,222 | 7.8% | ₹1,448/month | ₹52,128 (in 3 yrs) |
| Quarterly Payout | ₹2,22,222 | 8.0% | ₹4,512/quarter | ₹54,144 (in 3 yrs) |
Note: Interest rates and maturity values are illustrative and subject to change based on SBI’s latest policies.
Why Should You Open This FD in Wife’s Name?
Opening an FD in the wife’s name under this scheme has multiple benefits:
- Higher Interest Slabs: Female account holders are being offered special rates as part of this initiative.
- Zero Tax on Lower Income: If the wife’s total income is below the taxable limit, the interest earned can be tax-free.
- Better Financial Planning: Having separate FDs allows better allocation of financial goals (education, travel, retirement).
- Empowerment and Ownership: Boosts a sense of financial independence among homemakers.
Eligibility Criteria for the “Family First” Scheme
To enroll in the scheme, you must meet the following basic conditions:
- The depositor must be an Indian citizen.
- FD must be opened in the name of the wife (homemaker or working).
- Minimum deposit: ₹2,22,222
- Must be done via SBI (State Bank of India) through a designated “Family First” plan.
- Valid PAN, Aadhaar, and KYC documentation required.
Documents Required:
- PAN Card of wife and husband
- Aadhaar Card (both)
- Marriage Certificate (optional but preferred)
- Address Proof
- Passport-size photographs
How to Apply for SBI’s Family First FD Scheme?
Here’s a simple 5-step process to start your FD under this government initiative:
- Visit the nearest SBI branch or login to SBI Net Banking.
- Request for “Family First FD” or select the scheme from the FD menu online.
- Provide necessary KYC documents and choose payout frequency.
- Deposit the amount of ₹2,22,222 from your or joint account.
- Collect receipt and track interest via SBI YONO or branch.
Important Timelines:
| Application Window | Scheme Valid Till | Early Withdrawal Allowed? | Premature Penalty |
|---|---|---|---|
| Open Now | 30th September 2025 | Yes (After 6 Months) | 1% on interest |
| Reinvestment Option | Yes | Yes | No charges |
| Auto-Renewal | Available | Yes | – |
Tax Benefits and Exemptions Explained
This scheme also comes with multiple tax-saving opportunities:
- Section 80C: You can claim deduction up to ₹1.5 lakh on investment in wife’s name (if source is from your taxable income).
- Section 80TTB: Senior citizens investing can claim tax exemption on interest up to ₹50,000 per annum.
- Clubbing Rule Exception: If the wife reinvests the interest or the money is considered a gift, clubbing of income may not apply under certain clauses.
If you’re looking for a secure, high-return, tax-efficient family investment, the “Family First” SBI FD scheme might be one of the best choices this year. With attractive interest rates, special benefits for homemakers and senior citizens, and a government-backed initiative, it’s a rare opportunity to turn your family savings into a passive income powerhouse.
However, check the fine print and latest rates from your nearest SBI branch or official website before making a large deposit. Also, ensure you fully understand the tax implications based on your individual situation.
Frequently Asked Questions (FAQs)
1. Can I open this SBI FD in my daughter’s name instead of wife?
No, the current scheme is valid only for spouses under the “Family First” label.
2. Is the ₹2,22,222 amount mandatory or can I invest a different amount?
While ₹2,22,222 is the standard promotional deposit, you may be allowed to invest other amounts under the same scheme if approved by the bank.
3. Is this scheme available to NRIs?
No, only resident Indian citizens are eligible for this FD under the “Family First” offer.
4. Can I break the FD before maturity?
Yes, early withdrawal is allowed after 6 months, but a 1% penalty on earned interest may apply.
5. Is the interest compounded annually or quarterly?
Interest is compounded quarterly by default unless you choose a payout option like monthly or quarterly withdrawals.