SBI Senior Citizen FD Interest Rates 2024: This guaranteed return scheme provides Rs 2.25 lakh interest after investing Rs 5 lakh
SBI Senior Citizen FD Interest Rates 2024: Senior citizens need a regular source of income at their retirement age. So, a lot of them prefer investing in senior citizen fixed deposit schemes as they offer them higher interest rates than general citizens. The 5-year FD also provides tax benefits of up to Rs 1.50 lakh on deposits under Section 80C of the Income Tax Act.
SBI Senior Citizen FD Interest Rates: When you grow old, your income may stop, but your daily expenses do not stop. They may be reduced compared to the time when you were young, but they are not zero and need some source to meet them. However, most senior citizens find it hard to get some work or a job after 60 years of age. They either have to depend on others (mostly children) to meet their daily expenses or they fall back on returns from their investments. It is always better to have financial freedom in every stage of your life, where you don't have to depend on anyone. The best is to start your retirement planning early so that you have a sizeable corpus by the age of 60. But even if one doesn't have a retirement corpus by that age, they may invest in a lot of government and private senior citizen schemes whose sole focus is to help senior citizens get returns in their old age so that they can meet their daily expenses. A senior citizen fixed deposit (FD) is one such scheme where they get a return in the form of interest. The scheme is non-market linked and provides a guaranteed return, so there is not much market risk involved. The 5-year FD also provides tax benefits of up to Rs 1.50 lakh on deposits under Section 80C of the Income Tax Act. Like many other banks, State Bank of India (SBI) also runs a lot of FD schemes for senior citizens.
Among all its senior citizen FD schemes, the bank offers its highest interest rate in the 400-day Amrit Kalash scheme at 7.60 per cent. The lender's interest rates for the 1-year, 3-year, and 5-year FD schemes are 7.30 per cent, 7.25 per cent and 7.50 per cent, respectively (As per Paisabaazar.com).
In this write-up, know how much return you will get on Rs 1,25,000, Rs 2,50,000, Rs 3,75,000, and Rs 5,00,000 investments in the 1-year, 3-year, and 5-year SBI senior citizen FDs.
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In 1-year SBI Senior Citizen FD (at 7.30 per cent annual interest rate)
If you invest Rs 1,25,000 in the 1-year FD, the interest amount you will earn will be Rs 9,378, while the maturity amount will be Rs 1,34,378.
On an investment of Rs 2,50,000, you will get an interest amount of Rs 18,756, and the maturity amount will be Rs 2,68,756.
In 1-year SBI Senior Citizen FD (at 7.30 per cent annual interest rate)
After investing Rs 3,75,000, the interest you will get will be Rs 28,134, and the maturity amount will be Rs 4,03,134.
A Rs 500,000 investment will give you Rs 37,511 in interest and Rs 5,37,511 at maturity.
In 3-year SBI Senior Citizen FD (at 7.25 per cent annual interest rate)
If you invest Rs 1,25,000 in the 1-year FD, the interest amount you will get will be Rs 30,068, while the maturity amount will be Rs 1,55,068.
On an investment of Rs 2,50,000, you will get an interest amount of Rs 60,137, and the maturity amount will be Rs 3,10,137.
In 3-year SBI Senior Citizen FD (at 7.25 per cent annual interest rate)
On an investment of Rs 3,75,000, the interest you will get will be Rs 90,205, and the maturity amount will be Rs 4,65,205.
A Rs 500,000 investment will give you Rs 1,20,273 in interest, and Rs 6,20,273 at maturity.
In 5-year SBI Senior Citizen FD (at 7.50 per cent annual interest rate)
If you invest Rs 1,25,000 in the 1-year FD, the interest amount you will get will be Rs 56,244, while the maturity amount will be Rs 1,81,244.
On an investment of Rs 2,50,000, you will get an interest amount of Rs 1,12,487, and the maturity amount will be Rs 3,62,487.
In 5-year SBI Senior Citizen FD (at 7.50 per cent annual interest rate)
After investing Rs 3,75,000, the interest you will get will be Rs 1,68,731, and the maturity amount will be Rs 5,43,731.
A Rs 500,000 investment will give you Rs 2,24,974 in interest and Rs 7,24,974 at maturity.