SBI Senior Citizen FD: Bank FDs remain a solid choice for fixed income investments. This allows money to be doubled either completely risk-free or with very little risk. Customers of SBI, the biggest bank in the nation, can also choose from a variety of FDs plans with varying terms. Clients can avail FDs for a period of seven days to ten years. Regular customers can earn an annual interest rate of 3% to 6.5% on FDs with different maturities from SBI, while senior citizens can earn an interest rate of 3.5% to 7.5%.
One-Time Payment of Rs 1 Lakh
Assume a regular customer of SBI places a one-time payment of one lakh rupees into the bank’s 10-year maturity plan. The investor will receive a total of Rs 1,90,555 at maturity at an interest rate of 6.5 percent annually, based on the SBI FD Calculator. This will have a fixed interest income of Rs 90,555.
Senior Citizen’s Investment Strategy
A senior citizen, on the other hand, deposits a one-time payment of Rs. one lakh into SBI’s 10-year maturity scheme. Senior citizens will receive a total of Rs 2,10,234 at maturity at a 7.5 percent annual interest rate, according to the SBI FD Calculator. This will have a fixed interest income of Rs 1,10,234 per year.
Secure Investment Choice
Bank FDs are typically regarded as secure. For those who are risk-averse investors, this is a good option. For five years of tax savings FD, the benefit of the Section 80C tax deduction is available. On the other hand, FD’s interest is taxable. Income Tax Rules (IT Rules) state that FD schemes are subject to Tax Deduction at Source (TDS). That is to say, the amount you receive when your FD matures will be deemed your income, and you will be required to pay tax at the applicable slab rate. The depositor may submit Form 15G/15H to be exempt from tax deductions in accordance with IT regulations.
Up to Rs 5 Lakh Coverage
If you are a bank customer, you should be aware that you are covered by insurance up to Rs 5 lakh on the amount you have deposited with the bank in the event that your bank defaults or files for bankruptcy. The Deposit Insurance and Credit Guarantee Corporation (DICGC) gives this amount to the customer. The Reserve Bank owns all of the shares in DICGC. The nation’s banks are covered by the DICGC. The government has raised the maximum amount that could be awarded under this Act in the event of a bank failure or bankruptcy from Rs 1 lakh to Rs 5 lakh. It also covers foreign banks that have branches in India.
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