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SBI Launches New Term Deposit Scheme for Super Senior Citizens.

Banking & Finance | Dated: 03 Feb 2025

In January 2025, Mumbai (Maharashtra)-based State Bank of India (SBI) introduced a new Term Deposit (TD) scheme called 'SBI Patrons' for Super Senior Citizens (residents aged 80 years or above).

🎯 Key Highlights:

  • - The scheme offers additional interest benefits, providing an interest rate 10 basis points (0.10%) higher than the rates offered to senior citizens.
  • - As per Section 194P of the Income Tax Act, 1961, resident individuals aged 80 years or more are classified as Super Senior Citizens.

💡 Other Important Facts:

  • (i) The scheme offers interest rates ranging from 4.10% to 7.60% for Super Senior Citizens. Specifically, the 1-year TD rate is 7.4%, while the 5-year TD rate is 7.6%.
  • (ii) The scheme includes Term Deposit Receipt (TDR) and Short-Term Deposit Receipt (STDR), with a minimum deposit of ₹1,000 and a maximum deposit of up to ₹3 crore. The deposit tenure ranges from 7 days to 10 years.
  • (iii) SBI imposes a penalty for premature withdrawals—0.50% for amounts up to ₹5 lakh, and 1% for amounts exceeding ₹5 lakh.

📚 Test Your Knowledge:

Recently, which bank launched the ‘SBI Patrons’ Term Deposit Scheme for Super Senior Citizens?

Correct Answer: State Bank of India

🚀 Quick Recap: