SBI Scheme : Generally, as the age increases, the risk-taking ability of most people regarding investment decreases. After retirement, no common investor wants to take any kind of risk with his money.
It is true that after being a senior citizen, money cannot be taken at risk, but it is not that the options to make money out of money have come to an end. Banks have many schemes for senior citizens in which guaranteed income is available. One of these is the Senior Citizen Term Deposit Scheme of State Bank of India (SBI).
If you are a recent retiree and have a substantial corpus, you can invest in SBI’s Senior Citizen FD scheme for a longer tenure.
SBI FD Rates 2023: How much will senior citizens benefit
According to the information given on the SBI website, senior citizens can deposit money in SBI’s FD scheme for a maturity period ranging from 7 days to 10 years. Generally, senior citizens get half a percentage point i.e. 0.50% more interest on fixed deposits than regular customers. At the same time, senior citizens get 1% more interest on FDs of 5 years to 10 years.
These are the interest rates
According to SBI’s website, regular customers are getting 6.5 per cent interest per annum on FDs ranging from 5 years to 10 years, while the bank is offering 7.5 per cent per annum interest to senior citizens. Actually, senior citizens get extra half per cent premium interest under the SBI V-Care Deposit Scheme on FDs of 5 to 10 years.
SBI FD: Rs 10 lakh will become Rs 21 lakh in 10 years
Suppose a senior citizen deposits 10 lakhs in a 10 year maturity scheme of SBI. According to the SBI FD calculator, on maturity, the investor will get a total of Rs 21,02,349 at an interest rate of 7.5 per cent per annum. There will also be a fixed income of Rs 11,02,349 in interest.
SBI has increased interest rates by 0.25 per cent on deposits of less than Rs 2 crore from February 15, 2023. Along with making loans costlier, interest rates on deposits are also being increased by the banks. Earlier, SBI had increased the interest rates on FDs on 13 December 2022.