SBI SCSS FD : Are you a senior citizen looking for a reliable, government-backed investment scheme that ensures regular monthly income? The State Bank of India (SBI) is offering an attractive fixed deposit option under the Senior Citizens Savings Scheme (SCSS) that guarantees a fixed income of ₹8,000 per month. But hurry — the last date to apply for this financial year’s special benefit is 31st May 2025.
What is SBI SCSS FD Scheme?
The Senior Citizens Savings Scheme (SCSS) is a government-supported fixed deposit plan tailored for individuals aged 60 years and above. SBI, being one of the largest public sector banks, offers this scheme with attractive interest rates, safety, and flexibility.
Key Features:
- Exclusively for senior citizens aged 60 years or more
- Government-backed with assured returns
- Quarterly interest payout, ensuring regular income
- Tax benefits under Section 80C
- Lock-in period of 5 years (extendable by 3 years)
Eligibility Criteria for SBI SCSS FD
To open an SCSS account with SBI, the following eligibility conditions must be met:
- Indian residents aged 60 or above
- Individuals aged 55 to 60 can also apply if they have opted for Voluntary Retirement Scheme (VRS)
- Retired defense personnel aged 50 and above
Documentation Required:
- Age proof (Aadhaar, PAN, Voter ID, Passport, etc.)
- Address proof
- PAN Card
- Passport-size photographs
- Form A (SCSS account opening form)
Investment Limits and Income Structure
One of the major attractions of the SBI SCSS FD is its regular interest payout, which ensures a fixed income for senior citizens.
Table 1: Investment & Monthly Income Structure
| Investment Amount | Interest Rate (Apr 2025) | Annual Interest | Monthly Income |
|---|---|---|---|
| ₹5,00,000 | 8.20% | ₹41,000 | ₹3,416 |
| ₹10,00,000 | 8.20% | ₹82,000 | ₹6,833 |
| ₹12,00,000 | 8.20% | ₹98,400 | ₹8,200 |
| ₹15,00,000 (Max) | 8.20% | ₹1,23,000 | ₹10,250 |
| ₹7,50,000 | 8.20% | ₹61,500 | ₹5,125 |
| ₹2,50,000 | 8.20% | ₹20,500 | ₹1,708 |
| ₹1,00,000 | 8.20% | ₹8,200 | ₹683 |
*Note: Interest is paid quarterly but has been divided here for monthly understanding.
Benefits of Investing in SBI SCSS FD
SBI’s SCSS FD provides multiple benefits that make it an ideal investment option for retirees:
- Fixed Monthly Income: Provides financial stability during retirement years
- Capital Safety: Backed by the Government of India
- Attractive Interest Rates: Higher than normal FDs
- Tax Benefits: Deduction up to ₹1.5 lakh under Section 80C
- Extension Option: After 5 years, can be extended for another 3 years
- Easy Process: Can be opened at any SBI branch across India
How to Apply for SBI SCSS FD?
Applying for the scheme is straightforward. Here’s a step-by-step guide:
Offline Process:
- Visit your nearest SBI branch
- Carry necessary KYC documents
- Fill out Form A for SCSS account opening
- Deposit the amount via cheque or transfer
Online Availability:
- Currently, SCSS can only be opened offline with SBI
- For updates on online facilities, visit
See more : Great News for Senior Citizens
Important Dates and Deadlines
Make sure you don’t miss the last date if you want to avail the benefits in the current financial cycle.
Table 2: Key Timeline Details
| Event | Date |
|---|---|
| Scheme Opened | April 1, 2025 |
| Last Date for Application | May 31, 2025 |
| Interest Crediting (Quarterly) | June, Sept, Dec, March |
| Extension Application Date (Optional) | Before Maturity |
| Income Tax Declaration Submission | April every year |
Taxation and TDS Details
Though the SCSS offers tax benefits under Section 80C, the interest earned is taxable:
- Interest over ₹50,000 annually is subject to TDS (Tax Deducted at Source)
- Submit Form 15H (if eligible) to avoid TDS deduction
- Include SCSS interest income while filing ITR
Table 3: Taxation Illustration
| Investment | Annual Interest | TDS Applicable | Net Interest Received |
|---|---|---|---|
| ₹10,00,000 | ₹82,000 | Yes (10% on ₹32,000) | ₹78,800 |
| ₹5,00,000 | ₹41,000 | No | ₹41,000 |
Things to Keep in Mind Before Investing
Before investing, consider the following:
- Maximum investment limit is ₹15 lakhs
- Premature withdrawal allowed only after 1 year, with penalty
- The scheme is ideal for risk-averse investors
- Ensure interest payout schedule fits your financial needs
The SBI SCSS FD scheme is an excellent option for senior citizens seeking secure, fixed income with the backing of a government initiative. With a fixed return of ₹8,000 per month (for eligible investments), tax benefits, and stability, this scheme stands out as one of the best post-retirement investment options. Remember, the last date to invest for the current cycle is 31st May 2025 — act fast to ensure regular returns and financial peace of mind during your golden years.
This article is for informational purposes only. Interest rates, eligibility, and tax rules are subject to change as per government notifications and SBI policies. Please consult a financial advisor or your nearest SBI branch for personalized advice before investing.
