Investors also get an income tax exemption on deposits up to Rs 1.50 lakh in five-year FDs.
FD schemes are popular among senior citizens since investment in such programmes offers them a guaranteed return. Since FDs are not market-linked, investment in them is much safer than market-linked schemes such as stocks and mutual funds. State Bank of India (SBI), like many prominent lenders, runs many FD schemes for general citizens as well as senior citizens. It offers extra interest rates on some FDs to senior citizens. Investors also get an income tax exemption on deposits up to Rs 1.50 lakh in five-year FDs.
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The current SBI annual interest rates in SBI senior citizen FDs are 7.60 (in the 400 Amrit Kalash scheme), 7.30% in a 1-year FD, 7.25% in a 3-year FD, and 7.50% in a 5-year FD (As per data collated from Paisabazaar.com).
In this write-up, know what you will get if you invest Rs 2 lakh each in SBI senior citizen FDs of 1 year, 3 years, and 5 years.
Return on Rs 2 lakh investment in 1-year SBI Senior Citizen FD
In the 1-year FD, a senior citizen gets a 7.30 per cent return, so on a Rs 2 lakh investment, one will get Rs 15,005 as interest in one year. At maturity, they will get Rs 2,15,005.
Return on Rs 2 lakh investment in 3-year SBI Senior Citizen FD
The 3-year FD offers a 7.25 per cent interest rate. On a Rs 2 lakh investment, one will get Rs 48,109 in interest.
The total amount at maturity will be Rs 2,48,109.
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Return on Rs 2 lakh investment in 5-year SBI Senior Citizen FD
The five-year FD offers a 7.50 per cent interest rate, so a Rs two lakh investment in the scheme will give Rs 89,990 in interest, while the maturity amount will be Rs 2,89,990.
