SBI Special FD Scheme – If you’re a senior citizen looking for a safe and steady income option, State Bank of India (SBI) has something you’ll definitely want to check out. SBI has launched a limited-time fixed deposit (FD) scheme designed specifically for seniors. This plan offers guaranteed monthly income—up to ₹8,000—along with the security of investing with India’s most trusted bank. But there’s a catch: the last date to apply is May 31, 2025. So if you’re planning your post-retirement income, don’t miss this one.
What Is SBI’s Special FD Scheme for Seniors?
This special FD is tailor-made for individuals aged 60 and above who want a fixed monthly income rather than waiting till the end of the FD term. The scheme is available only for a limited period and allows interest payouts every month, which can really help with regular expenses like medical costs, groceries, and utility bills.
Here’s a quick look at the key features:
- Open only to senior citizens (60+ years)
- Choose a tenure between 5 to 10 years
- Get monthly income up to ₹8,000
- Minimum deposit is ₹2 lakh, maximum is ₹50 lakh
- Higher interest than regular fixed deposits
- Valid till May 31, 2025
SBI Special Senior FD Scheme Interest Rates (As of May 2025)
Let’s break down what you can expect based on your deposit. The interest rate is currently 7.50% across the board, and your monthly income will depend on how much you invest.
| Deposit Amount | Tenure | Interest Rate | Monthly Income |
|---|---|---|---|
| ₹2,00,000 | 5 years | 7.50% | ₹1,250 |
| ₹5,00,000 | 5 years | 7.50% | ₹3,125 |
| ₹8,00,000 | 5 years | 7.50% | ₹5,000 |
| ₹10,00,000 | 5 years | 7.50% | ₹6,250 |
| ₹12,80,000 | 5 years | 7.50% | ₹8,000 |
| ₹15,00,000 | 5 years | 7.50% | ₹9,375 |
| ₹20,00,000 | 5 years | 7.50% | ₹12,500 |
Why This Monthly Income Scheme is Popular with Seniors
There are a bunch of reasons why this scheme has caught the attention of retirees. For one, the steady monthly payouts help manage routine expenses without having to break into savings. The capital remains safe, and the returns are predictable. Seniors also enjoy a slightly better interest rate than regular customers. There are tax benefits too—by submitting Form 15H or 15G, some tax liability can be reduced or avoided.
How to Apply for SBI’s Senior FD Scheme
Applying is pretty simple. You can do it by walking into your nearest SBI branch or online through SBI’s YONO app or internet banking portal. In person, you’ll need to carry identity proof, age verification (like your Aadhaar or PAN), and bank details. You’ll fill out an FD form, select the monthly interest payout option, and choose your tenure.
Online users can log in to the SBI website or app, select the senior citizen FD scheme, enter the amount, choose “monthly interest payout,” and complete the transaction digitally.
Who Can Apply? Check Eligibility First
To apply for this scheme, you must be at least 60 years old and a resident Indian. You’ll need to provide basic documents including your PAN card, Aadhaar, proof of age, and bank account details. This scheme is not open to NRIs.
How It Compares to Other Senior Citizen Investment Schemes
If you’re wondering how this stacks up against other popular options, here’s a quick comparison of monthly income potential on a ₹12.8 lakh investment.
| Investment Option | Interest Rate | Tenure | Monthly Income (₹12.8L) | Safety |
|---|---|---|---|---|
| SBI Senior Citizen FD | 7.50% | 5 years | ₹8,000 | High |
| Post Office Monthly Income Scheme | 7.40% | 5 years | ₹7,893 | Very High |
| Senior Citizens Saving Scheme | 8.20% | 5 years | ₹8,740 | Very High |
| LIC Jeevan Akshay Annuity | ~6.80% | Lifetime | ₹7,253 | High |
While schemes like the SCSS offer higher returns, SBI’s FD is still a great choice if you’re looking for hassle-free monthly payouts from a trusted bank.
Why SBI Is a Trusted Choice for Retirees
Apart from being India’s largest public sector bank, SBI’s reliability and widespread branch network make it convenient for seniors across the country. Their interest calculations are transparent, there are no surprise fees, and the paperwork is simple. Plus, online and in-person support is available for any questions.
What You Should Know Before Investing
Before jumping in, there are a few things to consider. If you need to withdraw your FD early, you may not get the full interest. Also, TDS will apply if your interest earnings cross the exempt limit—unless you submit Form 15H/15G. And finally, these terms are only valid until May 31, 2025. After that, the scheme might change or close altogether.
SBI’s special FD scheme for senior citizens is a solid option if you’re seeking dependable, monthly income without taking big risks. It combines decent returns, flexible deposit options, and the safety of a government-backed bank. If you’re eligible and interested, don’t wait too long—May 31 is the last day to apply and lock in the benefits.
