SBI Scheme: Generally, as age increases, the ability to take risk regarding investment reduces. After retirement, no common investor wants to take any kind of risk with his money. It is true that after being a senior citizen, one cannot take risk on money, but it is not that the options for making money from money get eliminated.

There are many bank deposits and government schemes for fixed and guaranteed income for senior citizens. One of these is the Senior Citizen Term Deposit Scheme of State Bank of India (SBI). If you have recently retired and have got a good amount of funds, then investing in SBI Senior Citizen FD Scheme is a better option from a long-term perspective.

SBI FD Rates 2023: How much benefit to senior citizens

According to the information available on SBI website, senior citizens can deposit in SBI’s FD scheme for maturity ranging from 7 days to 10 years. Generally, senior citizens get half a percent (0.50%) more interest on fixed deposits than regular customers. Whereas, on FDs of 5 years to 10 years, senior citizens get 1 percent more interest.

According to the SBI website, regular customers are getting 6.5 percent annual interest on FDs of 5 years to 10 years, while the bank is offering 7.5 percent annual interest to senior citizens. Actually, senior citizens get additional half percent premium interest under SBI We-care deposit scheme on FD of 5 to 10 years.

SBI FDs: ₹10 lakh will become ₹21 lakh in 10 years

Suppose, a senior citizen deposits Rs 10 lakh in lump sum in SBI’s scheme with 10 years maturity. According to SBI FD Calculator, the investor will get a total of Rs 21,02,349 on maturity at 7.5 percent annual interest rate. In this, there will be fixed income of Rs 11,02,349 from interest.

Let us tell you, SBI has increased the interest rates on deposits of less than Rs 2 crore by 0.25 percent from February 15, 2023. Along with making loans expensive, banks are also increasing interest rates on deposits. Earlier, SBI had increased the interest rates on FD on December 13, 2022.

SBI FDs: Interest income taxable

Fixed deposits/term deposits of banks are considered safe. This is a good option for investors who do not take risk. Tax exemption under Section 80C is available on 5 year tax saving FD. However, the interest received from FD is taxable.

According to Income Tax Rules (IT Rules), Tax Deduction at Source (TDS) is applicable on FD schemes. That is, the amount received on maturity of FD will be considered as your income and you will have to pay tax as per the slab rate. According to IT rules, the depositor can submit Form 15G/15H for exemption from tax deduction.

The post SBI’s superhit scheme: Deposit ₹ 10 lakh only once, after 10 years you will get more than ₹ 21 lakh; Know who will benefit first appeared on Rightsofemployees.com.

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.

The post SBI’s superhit scheme! Deposit 10 lakhs in one go, after ten years you will get 21 lakh rupees first appeared on Rightsofemployees.com.