SBI Senior Scheme – The State Bank of India (SBI) has launched a special fixed deposit scheme tailored for senior citizens, promising guaranteed returns and peace of mind in retirement. Under this plan, a deposit of ₹1 lakh can earn up to ₹44,000 in interest over the tenure. This scheme ensures regular income and financial security, making it an attractive option for those aged 60 and above.
What is the SBI Senior Citizen Scheme?
SBI’s new offering for senior citizens is a specially designed fixed deposit plan that provides enhanced interest rates, offering retirees a stable and secure income option. This scheme is exclusively available to individuals aged 60 years and above, ensuring they earn better returns compared to standard FD rates. With flexible tenure options and regular interest payout modes (monthly, quarterly, or annually), the scheme is aimed at supporting elderly citizens in managing their monthly expenses without financial stress.
The plan is ideal for those looking for a risk-free investment avenue backed by the credibility of India’s largest public sector bank. Whether you are planning for healthcare costs, daily expenses, or simply looking for a reliable savings option post-retirement, the SBI Senior Citizen Scheme ensures financial stability through assured returns. It also offers the convenience of premature withdrawals and can be opened both offline and online, making it accessible for all eligible senior citizens across the country.
Key Features of the Scheme
- Available only for Indian citizens aged 60 years and above
- Interest rates are higher than regular FDs by approximately 0.50%
- Option for monthly, quarterly, or annual interest payouts
- Tenure options ranging from 1 year to 10 years
- Premature withdrawal allowed with minor penalty
- Interest is subject to TDS if it exceeds the threshold
- Safe and backed by SBI, India’s largest public sector bank
Interest Rates and Returns Breakdown
The SBI Senior Citizen Scheme offers higher interest rates than regular fixed deposits, making it a lucrative option for retirees seeking stable income. Depending on the deposit amount and tenure, senior citizens can earn up to 8.8% interest annually. The returns are calculated based on compound interest, and investors have the flexibility to choose the payout frequency, monthly, quarterly, or at maturity. Below is a detailed table showing how much interest one can earn on different investment amounts.
Below is a detailed table showing estimated returns based on different deposit amounts and tenures under the SBI Senior Citizen Scheme:
| Deposit Amount | Tenure | Interest Rate | Interest Earned | Total Maturity Amount |
|---|---|---|---|---|
| ₹1,00,000 | 5 Years | 8.8% p.a. | ₹44,000 approx. | ₹1,44,000 |
| ₹1,50,000 | 5 Years | 8.8% p.a. | ₹66,000 approx. | ₹2,16,000 |
| ₹2,00,000 | 5 Years | 8.8% p.a. | ₹88,000 approx. | ₹2,88,000 |
| ₹3,00,000 | 5 Years | 8.8% p.a. | ₹1,32,000 approx. | ₹4,32,000 |
| ₹5,00,000 | 5 Years | 8.8% p.a. | ₹2,20,000 approx. | ₹7,20,000 |
| ₹1,00,000 | 3 Years | 8.0% p.a. | ₹24,000 approx. | ₹1,24,000 |
| ₹1,00,000 | 1 Year | 7.3% p.a. | ₹7,300 approx. | ₹1,07,300 |
| ₹2,00,000 | 3 Years | 8.0% p.a. | ₹48,000 approx. | ₹2,48,000 |
Benefits of SBI Senior Citizen Fixed Deposit Scheme
- Guaranteed Returns: Risk-free income with a fixed interest rate.
- Flexible Tenures: Choose a term that suits your financial goals.
- Regular Income Options: Monthly/quarterly payout modes available.
- Safe Investment: Trusted and backed by SBI’s strong financial foundation.
- Tax Benefit Options: Can be linked to 80C under tax-saving FDs.
How to Apply for the Scheme
Senior citizens can open the fixed deposit through the following channels:
- Visit Nearest SBI Branch: Submit ID proof, age proof, and address proof.
- SBI Online or YONO App: Existing account holders can book FDs online.
- Joint Holding: Allowed with another senior citizen or close family member.
Required Documents
- PAN Card
- Aadhaar Card
- Age Proof (Any document showing DOB)
- SBI Savings Account details
- Recent passport-size photograph
Eligibility Criteria for the Scheme
- Individual must be 60 years of age or above
- Resident Indian only (NRI customers are not eligible)
- Valid savings or current account with SBI
- Joint accounts allowed, but the primary holder must be a senior citizen
Comparison with Other Senior Citizen Schemes
| Scheme Name | Bank/Institution | Interest Rate | Max Tenure | Payout Option |
|---|---|---|---|---|
| SBI Senior Citizen Scheme | SBI | Up to 8.8% | 10 Years | Yes |
| HDFC Senior Citizen FD | HDFC Bank | Up to 7.75% | 10 Years | Yes |
| Post Office SCSS | India Post | 8.2% (Q1 FY26) | 5 Years | Yes (Quarterly) |
| ICICI Senior Citizen FD | ICICI Bank | Up to 7.75% | 10 Years | Yes |
| Bank of Baroda FD Plus | BOB | Up to 8.3% | 10 Years | Yes |
Things to Consider Before Investing
- Ensure that the interest income will not breach the TDS limit
- Premature withdrawal leads to a lower interest rate + penalty
- Interest payouts are taxable unless exempted under 80TTB
- Plan your payout schedule according to your monthly financial needs
- Diversify across institutions to stay within the ₹5 lakh DICGC insurance limit
The SBI Senior Citizen Scheme is a reliable, low-risk investment option for individuals looking to secure a steady stream of income post-retirement. With high interest rates, flexible terms, and trusted service, this FD plan is ideal for elders aiming for financial independence and peace of mind. Whether you’re planning monthly expenses or building a corpus for future needs, this scheme is worth considering.
FAQs
- Can a senior citizen open this FD online?
Yes, existing SBI account holders can open this fixed deposit through internet banking or the YONO app. - Is premature withdrawal allowed?
Yes, you can break the FD before maturity but a penalty and lower interest rate will apply. - Can this be used as a tax-saving FD under Section 80C?
Only specific 5-year tax-saving FDs qualify under Section 80C. Check eligibility with SBI. - What is the maximum deposit limit in this scheme?
There is no maximum limit, but interest rates may vary for very high-value deposits. -
Are joint accounts allowed in this scheme?
Yes, joint accounts are permitted as long as the primary holder is a senior citizen.