SBI Sarvottam Scheme: The country’s largest public sector bank, State Bank of India (SBI), is offering a special scheme for retired senior citizens. Under the SBI Sarvottam scheme, an interest rate of 7.90 percent is being offered, which is higher than the interest offered under many government schemes. This scheme comes with some terms and conditions, but it can be useful for senior citizens looking to earn higher returns on their investments.
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The SBI Sarvottam FD scheme
The SBI Sarvottam scheme offers a higher interest rate than PPF, NSC, and post office savings schemes. The biggest advantage of this scheme is that it offers a lock-in period of one and two years. This means that you can create a large corpus over a short period. Under the SBI Sarvottam scheme, the bank is offering an interest rate of 7.4 percent on two-year deposits to the general public. Senior citizens, on the other hand, are offered an interest rate of 7.90 percent under the scheme. The general public is offered an interest rate of 7.10 percent on one-year investments and senior citizens are offered an interest rate of 7.60 percent.
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Benefits for senior citizens
Senior citizens will benefit from a higher interest rate on deposits of Rs 15 lakh to Rs 2 crore under the SBI Sarvottam scheme. The annual yield on one-year deposits of Rs 15 lakh to Rs 2 crore under this scheme is 7.82 percent. The annual yield on two-year deposits of Rs 15 lakh to Rs 2 crore is 8.14 percent. SBI is offering an interest rate of 7.77 percent on one-year deposits and 7.61 percent on two-year deposits to senior citizens on bulk deposits of Rs 2 crore to Rs 5 crore. This scheme is designed to offer compound interest.
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Minimum Investment
Under the SBI Sarvottam scheme, you can invest a minimum of Rs 15 lakh and a maximum of Rs 2 crore. This scheme is best for those who have retired and have PF fund money. They can invest this money in the SBI Sarvottam scheme. There is also an option to invest more than Rs 2 crore under this scheme, but the interest rate will be 0.05 percent lower. However, there is no information on the SBI website regarding how long you can invest money under this scheme.
No Withdrawl before Maturity
You cannot withdraw money from the SBI Sarvottam scheme before it matures. These are non-callable schemes, which means that money cannot be withdrawn before they mature. If you withdraw money prematurely, you will have to pay a penalty.
