SBI Scheme: As individuals grow older, their willingness to take risks with their investments generally diminishes. After retirement, most people prefer to avoid any financial risks.
However, it’s important to note that opportunities for growing one’s wealth still exist even for senior citizens.
Banks offer various schemes designed specifically for senior citizens, ensuring guaranteed income for their investments.
One such scheme is the Senior Citizen Term Deposit Scheme provided by the State Bank of India (SBI).
If you have recently retired and possess a substantial amount of savings,
you can consider investing in SBI’s Senior Citizen Fixed Deposit (FD) scheme for an extended period.
Extra Benefits for Senior Citizens
According to the information available on the SBI website, senior citizens can deposit their money in SBI’s FD scheme for a maturity period ranging from 7 days to 10 years.
Typically, senior citizens enjoy an additional interest rate of 0.50% on their fixed deposits compared to regular customers.
Furthermore, they receive an extra 1% interest on FDs held for 5 to 10 years.
Current interest rates:
Regular Customers: 6.5% per annum for FDs ranging from 5 to 10 years.
Senior Citizens: 7.5% per annum for FDs ranging from 5 to 10 years.
Save Rs 10 lakh ang get Rs 21 lakh in 10 years
Suppose a senior citizen deposits Rs 10 lakh in SBI’s 10-year maturity scheme.
According to the SBI FD calculator, at an interest rate of 7.5% per annum, the investor will receive a total of Rs 21,02,349 upon maturity. This includes a fixed income of Rs 11,02,349 in interest alone.
SBI has recently increased interest rates by 0.25% for deposits below Rs 2 crore, effective from February 15, 2023.
As banks strive to make loans costlier, they are also raising interest rates on deposits.
SBI had previously raised the interest rates on FDs on December 13, 2022.
