SBI’s Fixed Income Plan for Senior Citizens: A Reliable Monthly Income Option for Retirees

Are you a senior citizen seeking a steady and dependable source of income in your retirement years? The State Bank of India (SBI), the country’s largest public sector bank, has rolled out a dedicated Fixed Income Plan designed exclusively for senior citizens. With monthly payouts of up to ₹8,000, this scheme promises financial stability and peace of mind just what many retirees need. But don’t wait too long applications are only open until May 31, 2025.

What Is SBI’s Fixed Income Plan for Senior Citizens?

This special term deposit scheme by SBI is crafted to offer senior citizens a safe investment avenue with assured monthly returns. It allows you to invest your retirement savings and enjoy guaranteed income every month, helping you manage household expenses, medical bills, or leisure plans stress-free.

Key Features

📅 Monthly income up to ₹8,000

• 💰 Attractive 7.5% annual interest rate (higher than standard FDs)
•  🏦 Backed by SBI, a trusted and secure institution
•  ⏳ Flexible tenure from 3 to 10 years
•  🔓 Premature withdrawal allowed under conditions
•  📆 Last date to apply: May 31, 2025
•  💼 Minimum deposit: ₹1.25 lakh

Who Can Apply?

• To be eligible for this scheme, you must:
• Be an Indian resident
• Be 60 years or older
• Hold an active SBI savings or current account
• Provide valid PAN and Aadhaar cards

Interest Rates & Expected Returns

SBI offers an interest rate of 7.5% per annum under this plan — notably higher than standard FD rates for the general public.

Here’s an estimate of monthly payouts based on different investment amounts:

Investment Amount Monthly Payout (7.5%, 10-Year Tenure)

₹1,25,000 ₹781
₹2,00,000 ₹1,250
₹5,00,000 ₹3,125
₹7,00,000 ₹4,375
₹10,00,000 ₹6,250
₹12,75,000 ₹8,000
₹15,00,000 ₹9,375

Note: Figures are indicative. Actual amounts may vary slightly based on the date of deposit.

Required Documents

To apply, keep these documents handy:

•  Aadhaar card (self-attested copy)
•  PAN card (self-attested copy)
•  Proof of age (if not evident on Aadhaar or PAN)
•  SBI account statement or passbook
•  Two passport-sized photos
•  Filled application form

How to Apply

You can apply both online and offline, depending on your convenience.
Offline:

1. Visit your nearest SBI branch
2. Request the application form for the “Senior Citizen Fixed Income Scheme”
3. Submit the form with documents and deposit amount
4. Collect your receipt and payout schedule.

Online:

1. Log in to SBI Net Banking
2. Navigate to the Fixed Deposit section
3. Select Senior Citizen Fixed Income Plan
4. Enter deposit details, tenure, and payout account
5. Confirm and download your receipt

Note: Online availability may vary by branch. Contact SBI’s customer care for confirmation.

Why Choose SBI’s Senior Citizen Plan?

Here’s why this scheme is a solid option for retirees:

•  ✅ Capital safety with a government-backed bank
•  💸 Regular income for daily and medical expenses
•  📈 Higher interest than regular FDs (extra 0.5% for seniors)
•  🧾 Tax benefits under Section 80TTB
•  🧑‍🤝‍🧑 Nomination facility to protect your loved ones

How It Stacks Up Against Other Senior Citizen Schemes

Feature SBI Fixed Income Plan Post Office SCSS LIC PMVVY

• Interest Rate 7.5% 8.2% 7.4%
• Tenure Up to 10 years 5 years 10 years
• Maximum Investment ₹15,00,000 ₹30,00,000 ₹15,00,000
• Monthly Payout Option.
• Early Withdrawal Yes (with penalty) Yes (with penalty) Limited
• Tax Benefit (Section 80TTB)
• Deadline to Apply May 31, 2025 Ongoing Varies

Things to Consider Before You Invest

• 📊 Interest income is taxable if it exceeds ₹50,000 in a year
• 💡 Use only retirement savings for this investment
• 💸 Factor in inflation — your monthly income may lose value over time
• 🔄 Compare with other schemes like SCSS or Post Office MIS

Final Thoughts

SBI’s Senior Citizen Fixed Income Plan stands out as a low-risk, stable, and trusted investment option for retirees. While the interest rate isn’t the highest available, the security and convenience offered by SBI make it a worthy consideration for anyone looking to ensure steady post-retirement income.
If you’re planning to secure your golden years with predictable cash flow and minimal hassle, this scheme is definitely worth exploring.

🕒 Remember, the last date to apply is May 31, 2025. Don’t miss the opportunity to bring more financial comfort to your retirement journey.