SBI FD Interest Rates – For many senior citizens in India, safety and steady income are top priorities when it comes to investments. In 2025, the State Bank of India (SBI) has made its fixed deposit (FD) offerings even more appealing for those above the age of sixty. With revised interest rates, SBI is giving senior citizens a chance to earn higher returns, especially if they invest amounts between three lakh and nine lakh rupees.
Whether you are planning your retirement, saving for future medical expenses, or simply want a dependable income source, SBI’s latest FD rates offer an opportunity that is hard to ignore.
What Has Changed in 2025?
SBI has revised its fixed deposit interest rates this year, with a special focus on senior citizens. Those who are sixty or older now receive an additional half percent interest above the standard rate. Moreover, the bank has continued its popular “SBI Wecare” scheme, which adds more benefits to long-term deposits. The most favorable rates are offered on FDs ranging from three to nine lakh rupees. So, if you are investing within this range, you are likely to see better returns than before.
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Updated Interest Rates for Senior Citizens
Here is a breakdown of the new interest rates applicable from April 2025 for senior citizens. For short-term deposits of seven to forty-five days, the rate is now four percent. Deposits held between forty-six and one hundred seventy-nine days earn 5.25 percent. If you invest for one hundred eighty to two hundred ten days, the rate is six percent.
Between two hundred eleven days and one year, the rate increases to 6.5 percent. For deposits held from one to two years, it rises to 7.3 percent. Investments between two to three years will earn 7.5 percent.
For three to five years, the rate is 7.25 percent, and for long-term deposits of up to ten years, the rate stands at seven percent. These rates apply to domestic term deposits between three lakh and nine lakh rupees and may vary slightly based on the payout method and other terms.
SBI Wecare: Still a Great Choice?
Yes, the SBI Wecare scheme remains a great option for senior citizens. The bank has extended this scheme into 2025, and it continues to offer higher interest on long-term deposits. It provides an extra 0.3 percent interest on top of the regular 0.5 percent additional rate for seniors, making it a total bonus of 0.8 percent above the standard rate.
This scheme is only available for fixed deposits of five years or more and is ideal for retirees who want to invest a lump sum for stable long-term income. For example, under this scheme, while a regular customer would earn 6.5 percent on a five- to ten-year deposit, a senior citizen would receive 7 percent, and with Wecare, it increases to 7.3 percent.
This FD option can be opened online or offline and is one of the best long-term fixed income options available for seniors today.
What Kind of Monthly Income Can You Expect?
If you choose the monthly interest payout option, the income you receive will depend on the investment amount. A deposit of three lakh rupees for two years could earn you around one thousand eight hundred twenty-five rupees per month. With a five lakh investment, you might receive about three thousand forty-two rupees.
A deposit of seven lakh could fetch approximately four thousand two hundred fifty-nine rupees, while nine lakh would bring in nearly five thousand four hundred seventy-five rupees every month. These are approximate figures based on simple interest, and actual earnings may vary. Note that if your total interest income exceeds the annual exemption limit, tax deduction may apply.
How to Open an SBI FD as a Senior Citizen
Opening an SBI FD is simple and can be done either online or offline. To open it online, log in to SBI Internet Banking or use the YONO app. Navigate to the fixed deposit section, select the senior citizen FD option, enter the amount, tenure, and payout preference, then confirm and submit your request.
If you prefer the offline route, visit your nearest SBI branch with your Aadhaar card, PAN card, and proof of age. Fill out the FD application form and deposit your chosen amount via cash or cheque.
Important Things to Know Before You Invest
Before investing in an FD, senior citizens should consider a few important points. There may be a penalty for premature withdrawal, usually around half a percent depending on the tenure. If your interest earnings exceed fifty thousand rupees in a year, Tax Deducted at Source (TDS) may apply. It is also important to add a nominee for safety in case of emergencies. Additionally, you can opt for auto-renewal if you want your FD to continue automatically after maturity.
Tax Benefits for Senior Citizens
Senior citizens receive several tax benefits on FD interest income. Under Section 80TTB of the Income Tax Act, interest earnings up to fifty thousand rupees per financial year are exempt from tax. If your total income is below the taxable limit, you can submit Form 15H to the bank to avoid TDS deduction.
Should You Invest in SBI FD in 2025?
If you are a senior citizen looking for a safe and stable income source, SBI’s revised FD schemes in 2025 are definitely worth considering. The bank offers attractive rates, especially for deposits between three and nine lakh rupees. While SBI is a trusted option for many, it’s a good idea to compare its rates with other banks and financial institutions before making your final decision. Make sure to consider your liquidity needs and investment goals before locking in your funds for a long tenure.
Remember, interest rates may change from time to time, so it’s always best to check the latest rates on SBI’s official website or by visiting a local branch.
