State Bank of India or SBI has introduced a new fixed deposit plan called ‘SBI Patrons’ specifically for super senior citizens, those aged 80 and above. The goal of this initiative is to offer extra perks to older adults and enhance their financial stability. With this scheme, seniors can enjoy higher interest rates compared to regular FD options, allowing them to earn better returns on their investments.
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Eligibility and Interest Rate Info
The SBI Patrons FD scheme is tailored for super senior citizens, meaning individuals who are 80 years old or older. It’s open for both single and joint accounts, but the primary account holder needs to be at least 80 years of age.
Interest Rate:
With this scheme, super senior citizens (80 years and older) receive an extra 10 basis points (0.10%) in interest compared to other senior citizens. For instance, if the interest rate for regular senior citizens is 7.50%, super senior citizens will benefit from a rate of 7.60%.
Who Can Benefit from This Scheme:
This scheme is aimed at resident individuals who are over 80 years old and qualify as super senior citizens under section 194P of the Income Tax Act, 1961.
Investment limits and duration
Minimum deposit: Rs 1,000
Maximum deposit: Rs 3 crore
Investment duration: 7 days to 10 years
Early withdrawal penalties
For FDs up to Rs 5 lakh: a 0.50% penalty applies for early withdrawal.
For FDs over Rs 5 lakh: a 1% penalty applies for early withdrawal.
What will you earn on a Rs 15 lakh investment over 5 years?
If a super senior citizen invests Rs 15 lakh in this scheme, they could potentially receive around Rs 21,85,621 after 5 years. This means the total return would be Rs 6,85,621.
Keep in mind that this is just an estimate and serves as a general guideline. The actual amount at maturity may differ.
Desclaimer: For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.