For senior citizens, financial security after retirement is a top priority. While pensions provide some relief, many look for additional safe investment options that ensure regular savings and attractive returns. The State Bank of India (SBI), the country’s largest public sector bank offers a reliable scheme for this purpose-The SBI Senior Citizen Recurring Deposit (RD) Yojana.
Under this scheme, if a senior citizen deposits ₹10,000 every month for 5 years, they will receive approximately ₹7,28,896 at maturity, including both the principal and the interest earned. The scheme is designed to help retirees grow their savings in a disciplined manner while enjoying the safety of India’s largest government bank.
What is SBI Senior Citizen RD Yojana?
The SBI Senior Citizen RD Yojana is a savings scheme where retirees can deposit a fixed amount every month into their recurring deposit account. The money grows with compound interest and is paid out as a lump sum at maturity.
Unlike one-time investments, RD schemes promote regular savings habits, making it easier for senior citizens to invest consistently without burdening their monthly budget.
Key Features:
- Eligibility: Exclusively for Indian citizens above 60 years of age.
- Tenure: RDs can be opened for a minimum of 1 year and up to 10 years, but here we consider 5 years.
- Deposit Amount: Flexible, starting from as low as ₹100 (branch-specific rules apply).
- Extra Interest Benefit: Senior citizens earn 0.5% more interest compared to general customers.
Quick Summary-SBI Senior Citizen RD Yojana 2025
Field |
Details |
|---|---|
Scheme Name |
SBI Senior Citizen Recurring Deposit (RD) Yojana |
Bank |
State Bank of India (SBI) |
Minimum Monthly Deposit |
₹100 (can vary depending on branch rules) |
Example Calculation |
₹10,000 per month |
Duration |
5 years (60 months) |
Total Deposit (5 years) |
₹6,00,000 |
Interest Rate (2025) |
7.5% per annum (for senior citizens) |
Maturity Amount |
₹7,28,896 |
Extra Benefit |
Higher interest than normal RD customers |
Risk Factor |
Zero risk – SBI government-backed |
Official Website |
Why the Scheme is Special
- Higher Interest for Seniors – Senior citizens earn more interest than regular customers, making it highly rewarding.
- Safe Investment – Backed by SBI, there is no risk of losing your money.
- Disciplined Savings – Automatic monthly deposits ensure regular saving without breaks.
- Ideal for Middle-Class Families – Affordable monthly deposits that build into a sizeable fund.
- Extra Income Alongside Pension – Provides financial support to meet rising expenses during retirement.
Calculation: How ₹10,000 Monthly Becomes ₹7,28,896
Let us calculate how a deposit of ₹10,000 per month for 5 years grows under this scheme.
- Monthly Deposit = ₹10,000
- Total Deposit in 5 years (60 months) = ₹10,000 × 60 = ₹6,00,000
- Interest Rate for Senior Citizens = 7.5% per annum
- Maturity Amount after 5 years = ₹7,28,896
- Total Interest Earned = ₹7,28,896 – ₹6,00,000 = ₹1,28,896
Monthly Deposit |
Duration |
Total Deposit |
Interest Rate |
Maturity Amount |
Total Interest Earned |
|---|---|---|---|---|---|
₹10,000 |
5 years |
₹6,00,000 |
7.5% |
₹7,28,896 |
₹1,28,896 |
This shows that disciplined savings can generate a significant lump sum even with moderate monthly investments.
Benefits of SBI Senior Citizen RD Scheme
- Safe and Guaranteed Returns – Being an SBI scheme, it carries no market risk.
- Extra Interest Rate – Higher than normal RD customers.
- Flexible Tenure – Choose a period between 1 year to 10 years.
- Auto-Debit Facility – Monthly deposits can be automatically deducted from your savings account.
- Loan Against RD – SBI allows loans against RD deposits, ensuring liquidity if needed.
- No Risk of Loss – Principal and interest are fully secure.
How to Open SBI Senior Citizen RD Yojana
- Visit your nearest SBI branch or log in to SBI Net Banking / YONO App.
- Fill out the Recurring Deposit account opening form.
- Provide KYC documents such as Aadhaar, PAN card, and proof of age.
- Deposit your chosen monthly installment (minimum ₹100 and multiples thereof).
- Opt for the auto-debit facility to ensure regular deposits.
Taxation Rules
- Interest earned on RD is fully taxable as per the Income Tax Act.
- If the annual interest exceeds ₹40,000 (₹50,000 for senior citizens), TDS (Tax Deducted at Source) will apply.
- No tax benefits are available under Section 80C for RD deposits.
FAQs About SBI Senior Citizen RD Yojana 2025
Q1. Who can open an SBI Senior Citizen RD account?
Any Indian citizen above 60 years of age can open this account.
Q2. What is the minimum deposit amount?
It starts from ₹100 per month, but here we calculated with ₹10,000 monthly.
Q3. What interest rate is offered in 2025?
Senior citizens get around 7.5% per annum, which is higher than normal RD customers.
Q4. How much will I get if I deposit ₹10,000 monthly for 5 years?
You will receive approximately ₹7,28,896, including ₹1,28,896 as interest.
Q5. Can I take a loan against my RD?
Yes, SBI allows loans against RD deposits to meet emergency financial needs.
Conclusion
The SBI Senior Citizen RD Yojana 2025 is one of the most reliable savings plans for retirees who want to invest small amounts regularly and receive a lump sum at maturity. By depositing ₹10,000 monthly for 5 years, you can accumulate nearly ₹7.3 lakh, with more than ₹1.2 lakh as interest.
This scheme is safe, government-backed, and highly suitable for senior citizens looking to grow their savings without market risks.
For more information, visit the official SBI website: sbi.co.in
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