SBI Senior Citizen FD Interest Rates: You get Rs 5.50 lakh interest and tax benefits on Rs 10 lakh investment in this guaranteed return scheme
SBI Senior Citizen FD Scheme: The bank offers an extra interest rate to senior citizens compared to general citizens. Investment in the 5-year FD also provides tax benefits under Section 80C of the Income Tax Act, 1961, in this non-market-linked scheme.
SBI Senior Citizen FD: Many times, when we have a lump sum amount and want to deposit it without taking market risk, we look for guaranteed return options. In such investment avenues, we may not get as high returns as in many market-linked options, but we know that our money will steadily grow. Among guaranteed return options, fixed deposit (FD) is a prominent option. When it comes to senior citizens, they prefer parking their lump sum in FDs since, post retirement, they need guaranteed income. That's why we invest in senior citizen FD schemes. Many banks offer extra interest rates to senior citizens to encourage them to invest money. State Bank of India (SBI) is one of them. It offers extra interest rates to senior citizens. It runs Amrit Kalash, 1-year, 3-year, and 5-year senior citizen FDs. The lender offers its highest interest rate in the Amrit Kalash Scheme at 7.60 per cent.
The interest rates for its 1-year, 3-year, and 5-year FD schemes are 7.30 per cent, 7.25 per cent and 7.50 per cent, respectively (Data as per Paisabaazar.com).
The benefit of investing in a 5-year FD is that the investor gets tax benefits on deposits up to Rs 1.50 lakh in a financial year.
In this write-up, know what senior citizens will get in return on investments of Rs 2.50 lakh, Rs 5 lakh, Rs 7.50 lakh, and Rs 10 lakh in the 1-year, 3-year, and 5-year SBI senior citizen FDs.
Photos: Unsplash/Pixabay
In 1-year SBI Senior Citizen FD
On a deposit of Rs 2.50 lakh in the 1-year FD, your interest will be Rs 18,756, while you will get Rs 2,68,756 on maturity.
If you invest Rs 5 lakh in the scheme, your interest money will be Rs 37,511, and the maturity amount will be Rs 5,37,511.
In 1-year SBI Senior Citizen FD
An investment of Rs 7.50 lakh in the same will help you get Rs 56,267 in interest and Rs 8,06,267 in maturity.
After investing Rs 10 lakh in the FD, your interest will be Rs 75,023, while the maturity amount will be Rs 10,75,023.
In 3-year SBI Senior Citizen FD
A Rs 2.50 lakh investment in the 3-year senior citizen FD means a Rs 60,137 interest and a Rs 3,10,137 maturity.
On a Rs 5 lakh investment, the interest will be Rs 1,20,273, and the maturity will be Rs 6,20,273.
In 3-year SBI Senior Citizen FD
When you invest Rs 7.50 lakh in the scheme, you get Rs 1,80,410 in interest and a maturity worth Rs 9,30,410.
If you invest Rs 10 lakh in the 3-year FD, you will get Rs 4,49,948 in interest and Rs 14,49,948 in maturity.
In 5-year SBI Senior Citizen FD
If your investment in the 5-year FD is Rs 2.50 lakh, your interest amount will be Rs 9,30,410, and the maturity amount will be Rs 3,62,487.
On a Rs 5 lakh investment, you will get interest of Rs 2,24,974, while you will get Rs 7,24,974 in maturity.
In 5-year SBI Senior Citizen FD
A Rs 7.50 lakh investment will fetch you Rs 3,37,461 in interest and Rs 10,87,461 in maturity.
On a Rs 10 lakh investment, an investor will get Rs 4,49,948 in interest and Rs 14,49,948 in maturity.