Senior Citizen FD Scheme : SBI’s New FD Plan for Senior Citizens: Monthly Interest of ₹10K to ₹50K After Retirement : Planning for a financially secure retirement is a priority for every senior citizen. To ease this journey, the State Bank of India (SBI) has introduced a new Fixed Deposit (FD) scheme tailored specifically for senior citizens, offering attractive monthly interest payouts ranging from ₹10,000 to ₹50,000. This article provides a complete breakdown of the SBI Senior Citizen FD Plan, how much you need to invest, the interest rates, and how it can help ensure steady post-retirement income.
Key Features of SBI Senior Citizen FD Scheme
- Tailored for individuals aged 60 and above.
- Higher interest rate compared to regular FDs.
- Monthly interest payout option for regular income.
- Investment starts from ₹1 lakh and can go up to ₹1 crore or more.
- Tenure options from 1 year to 10 years.
- Safe and secure investment with guaranteed returns.
- Option to choose monthly, quarterly, or cumulative payouts.
Eligibility Criteria and Documents Required
To open a senior citizen FD account with SBI, you must fulfill the following:
- Age: Minimum 60 years
- Resident Indian status
- Valid documents such as:
- PAN Card
- Aadhaar Card
- Address proof
- Passport-size photograph
- SBI savings account details
Investment Amount vs Monthly Interest – Full Table (Sample for 7.5% Interest Rate)
| Investment Amount | Tenure | Interest Rate | Monthly Payout (Approx.) |
|---|---|---|---|
| ₹1,50,000 | 5 Years | 7.5% p.a. | ₹937 |
| ₹5,00,000 | 5 Years | 7.5% p.a. | ₹3,125 |
| ₹10,00,000 | 5 Years | 7.5% p.a. | ₹6,250 |
| ₹15,00,000 | 5 Years | 7.5% p.a. | ₹9,375 |
| ₹25,00,000 | 5 Years | 7.5% p.a. | ₹15,625 |
| ₹50,00,000 | 5 Years | 7.5% p.a. | ₹31,250 |
| ₹80,00,000 | 5 Years | 7.5% p.a. | ₹50,000 |
SBI WeCare Deposit Scheme – Additional Benefits for Seniors
SBI offers an exclusive scheme called “SBI WeCare” for senior citizens which provides additional interest on top of the regular FD rates.
- Additional 0.50% interest over the existing rate
- Available for tenures of 5 years or more
- Only applicable on term deposits (non-cumulative)
- Ideal for monthly income seekers after retirement
See more : Central Govt Employees to Get Dearness Allowance
Benefits of Investing in SBI Senior Citizen FD
- Guaranteed income every month – perfect for managing monthly expenses post-retirement.
- Low-risk investment option backed by the government.
- Liquidity option available through premature withdrawal (with penalty).
- Nomination facility available.
- Loan facility available against the FD amount.
- Hassle-free online booking via SBI internet banking or YONO app.
FD Investment Required to Get ₹10K to ₹50K Monthly – Calculation Table
| Desired Monthly Income | Approx. Investment Needed @7.5% | Annual Interest Payout |
|---|---|---|
| ₹10,000 | ₹16,00,000 | ₹1,20,000 |
| ₹15,000 | ₹24,00,000 | ₹1,80,000 |
| ₹20,000 | ₹32,00,000 | ₹2,40,000 |
| ₹30,000 | ₹48,00,000 | ₹3,60,000 |
| ₹40,000 | ₹64,00,000 | ₹4,80,000 |
| ₹50,000 | ₹80,00,000 | ₹6,00,000 |
How to Open SBI Senior Citizen FD Account
- Visit the nearest SBI branch or use SBI YONO/mobile banking.
- Choose the FD scheme under “Senior Citizen” category.
- Select tenure, interest payout frequency, and deposit amount.
- Submit necessary documents and complete e-KYC if required.
- Deposit the amount and receive FD certificate or digital confirmation.
Taxation on FD Interest Income
- Interest earned from FD is fully taxable under “Income from Other Sources”.
- TDS is deducted if annual interest exceeds ₹50,000 for senior citizens.
- Seniors can submit Form 15H to avoid TDS if their total income is below taxable limit.
Things to Keep in Mind Before Investing
- Compare rates and payout frequencies to select the best option.
- Ensure you maintain liquidity in case of emergencies.
- Ladder your FDs – split your investment into multiple FDs with different maturities.
- Reinvest interest income if not required immediately for higher returns.
- Check for special schemes like SBI WeCare for better benefits.
Other Banks vs SBI Senior Citizen FD Comparison
| Bank Name | Interest Rate (5-year FD) | Additional Rate for Seniors | Monthly Payout on ₹10L |
|---|---|---|---|
| SBI | 7.00% + 0.50% (WeCare) | 7.5% | ₹6,250 |
| HDFC Bank | 7.25% | 7.75% | ₹6,458 |
| ICICI Bank | 7.10% | 7.60% | ₹6,333 |
| Bank of Baroda | 7.25% | 7.75% | ₹6,458 |
| Axis Bank | 7.10% | 7.60% | ₹6,333 |
| PNB | 7.00% | 7.30% | ₹6,083 |
| IDFC First Bank | 7.50% | 8.00% | ₹6,666 |
SBI’s Senior Citizen FD scheme is an excellent option for retirees looking for a safe and consistent monthly income. With interest rates going as high as 7.5% under special plans like WeCare, senior citizens can secure monthly earnings ranging from ₹10,000 to ₹50,000 based on their investment. It’s a stable, risk-free avenue for post-retirement planning and can greatly ease the financial burden for elderly individuals. Before investing, always assess your needs, compare options, and consult a financial advisor if necessary.
What are the benefits of SBI's new FD plan for senior citizens?
Monthly interest of ₹10K to ₹50K after retirement.
How does SBI's new FD plan benefit retirees in terms of interest?
Monthly interest ranges from ₹10K to ₹50K for senior citizens.
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