The State Bank of India (SBI) has launched an exciting new fixed income plan for senior citizens, promising a hefty ₹44,000 return on a ₹1 lakh deposit. This special scheme, rolled out in August 2025, is designed to give retirees a safe and steady income source. With higher interest rates and guaranteed returns, it’s perfect for those over 60 looking to secure their future. The plan has created a buzz, and here’s everything you need to know about it.
A Plan for Easy Living
SBI’s new scheme is a fixed deposit tailored for senior citizens, offering financial peace of mind. By depositing ₹1 lakh, you can earn up to ₹44,000 over five years, thanks to a special 7.5% annual interest rate. This is higher than regular fixed deposits, making it a great choice for retirees. The money can be paid out monthly, quarterly, or at maturity, helping cover daily expenses or medical bills. It’s backed by SBI, India’s trusted bank, so your savings are safe.
Who Can Join?
To get this benefit, you need to be 60 years or older and an Indian resident. You must have an active SBI savings or current account, along with a valid PAN and Aadhaar card. The minimum deposit is ₹1 lakh, but you can invest more for bigger returns. Here’s a quick look at the plan’s key details:
| Feature | Specification |
|---|---|
| Interest Rate | 7.5% per year |
| Deposit Amount | Minimum ₹1 lakh |
| Tenure | 5 to 10 years |
| Payout Options | Monthly, Quarterly, or Maturity |
| Last Date to Apply | May 31, 2026 |
This table shows why the scheme is a smart pick for seniors.
How the Money Adds Up
The 7.5% interest rate is a big draw, especially since it’s 0.5% higher than standard fixed deposits. For a ₹1 lakh deposit over five years, you’ll earn ₹44,000 in interest, making your total ₹1.44 lakh. If you choose monthly payouts, you could get around ₹625 per month, perfect for small expenses. For larger deposits, like ₹10 lakh, monthly payouts could reach ₹6,250. The interest is taxable if it crosses ₹50,000 a year, so plan accordingly.
Easy Ways to Apply
Joining the scheme is simple. You can visit an SBI branch with your Aadhaar, PAN, and two photos, fill out a form, and deposit your money. Or, use SBI’s net banking to apply online: log in, go to the fixed deposit section, select the senior citizen plan, and submit your details. Make sure your bank details are updated to avoid delays. The last date to apply is May 31, 2026, so there’s time, but don’t wait too long as demand is high.
Why This Scheme Shines
This plan stands out for its safety and high returns. Unlike risky investments, SBI’s backing ensures your money is secure. It also offers tax benefits under Section 80TTB for seniors, saving up to ₹50,000 in interest tax-free yearly. You can add a nominee to protect your family. Compared to other options like Post Office schemes, SBI’s flexibility and trust make it a top choice. If you’re a senior citizen, this is a golden chance to grow your savings with ease.