Retirement doesn’t have to mean financial uncertainty. With the rising cost of living and increasing life expectancy, senior citizens in India often find it challenging to maintain a steady income stream after they stop working. Recognising this need, the State Bank of India (SBI)—India’s largest public sector bank—has introduced specially designed schemes that offer monthly income, peace of mind, and even free insurance. Whether you’re looking for a pension-like payout or higher interest earnings, SBI’s Senior Citizens Scheme has you covered.
What is SBI’s Special Scheme for Senior Citizens?
The SBI Annuity Deposit Scheme for Senior Citizens is tailored for individuals aged 60 and above. It allows retirees to invest a lump sum amount and receive fixed monthly payouts over a selected tenure. Think of it as a personalised pension plan—without the market risks.
Unlike traditional fixed deposits, this scheme returns your principal along with interest in equal monthly installments. That means regular income, just like a pension, and the confidence to plan your finances well into your golden years.
Key Features at a Glance
- Exclusive for Indian citizens aged 60 years and above
- Guaranteed monthly income on a one-time deposit
- Free insurance (under select plans like Wecare Deposit Scheme)
- Pension-like structure with flexible tenures
- Higher interest rates than regular FDs
- Option for premature withdrawal (with nominal penalties)
- Backed by SBI’s trust and legacy
Monthly Income Benefits for Retirees
Here’s what your returns might look like if you invest ₹10 lakh in the annuity scheme. The returns include both the interest and principal over the chosen period:
Sample Monthly Returns Table – ₹10 Lakh Deposit (Approx. Interest @7.5% p.a.)
| Tenure | Monthly Payout | Total Payout in Tenure | Interest Earned | Effective Annual Return |
|---|---|---|---|---|
| 3 Years | ₹31,129 | ₹11,20,644 | ₹1,20,644 | 7.47% |
| 5 Years | ₹20,180 | ₹12,10,800 | ₹2,10,800 | 7.55% |
| 7 Years | ₹15,110 | ₹12,69,240 | ₹2,69,240 | 7.65% |
| 10 Years | ₹11,855 | ₹14,22,600 | ₹4,22,600 | 7.70% |
| 12 Years | ₹10,331 | ₹14,88,864 | ₹4,88,864 | 7.75% |
| 15 Years | ₹8,840 | ₹15,91,200 | ₹5,91,200 | 7.80% |
| 20 Years | ₹7,180 | ₹17,23,200 | ₹7,23,200 | 7.85% |
SBI Wecare Deposit Scheme – Enhanced Interest + Free Insurance
SBI also offers an alternative called the Wecare Deposit Scheme, specially crafted for senior citizens seeking higher interest returns and insurance benefits.
Key Benefits of SBI Wecare Deposit:
- Extra 0.50% interest over regular FD rates
- Tenure options starting from 5 years
- Free accidental insurance via partnered insurers
- Safe investment unaffected by market conditions
Wecare Deposit Interest Table – As of April 2025
| Tenure | Regular FD Rate | Wecare Senior Citizen Rate | Monthly Interest on ₹5 Lakh |
|---|---|---|---|
| 5 Years | 6.5% | 7.0% | ₹2,916 |
| 7 Years | 6.6% | 7.1% | ₹2,958 |
| 10 Years | 6.75% | 7.25% | ₹3,020 |
| 15 Years | 6.9% | 7.4% | ₹3,083 |
This scheme is perfect for those who want safe returns with a security cushion. The insurance is automatic and doesn’t require additional premiums.
Eligibility & How to Apply
Who Can Apply?
- Resident Indians aged 60 years or above
- Must have a valid PAN card and age proof
- Required to complete KYC formalities
How to Apply:
- Visit your nearest SBI branch
- Ask for the Annuity or Wecare Deposit Scheme form
- Submit the required documents and deposit the desired amount
- Choose your tenure and payout mode
- Start receiving monthly income directly into your account
Why Should You Consider SBI’s Senior Citizen Schemes?
1. Guaranteed Monthly Income: Perfect for managing daily expenses without touching your savings.
2. No Market Risk: Unlike mutual funds or stock-linked plans, returns are fixed.
3. Free Insurance: Especially with the Wecare Scheme, it adds financial protection.
4. Flexible Tenures: Choose from 3 to 20 years based on your needs.
5. Reputation of SBI: Backed by India’s largest public sector bank.
How Does It Compare with Other Senior Citizen Options?
| Feature | SBI Senior Annuity | SCSS (Post Office) | Bank FDs (Other Banks) | LIC Pension Plans |
|---|---|---|---|---|
| Age Eligibility | 60+ | 60+ | 60+ | 60+ |
| Monthly Income | Yes | Quarterly | Monthly | Yes |
| Interest Rate | ~7.5% | 8.2% (Q1 FY25) | 6.5%–7.25% | 6%–7% |
| Insurance Cover | Yes (Wecare) | No | No | Yes |
| Premature Withdrawal | Yes (with charges) | After 1 year | Yes (conditions apply) | No (generally) |
| Tax Benefits | No (except 80TTB) | Up to ₹1.5L under 80C | No | Limited |
While SCSS offers a slightly higher interest rate, it is limited in terms of flexibility and insurance. SBI’s offerings strike the right balance between returns, convenience, and additional benefits.
Things to Keep in Mind
- Interest is taxable as per your income tax slab
- Premature withdrawal attracts a minor penalty
- Not suitable for short-term needs
- Can be combined with SCSS, PMVVY, or SWPs for a diversified retirement portfolio
Final Thoughts
For senior citizens seeking safety, regular income, and added perks like insurance, SBI’s senior citizen schemes offer a smart and secure option. Whether you choose the Annuity Deposit Scheme for monthly payouts or the Wecare Deposit Scheme for higher interest and insurance coverage, both plans are built to support a dignified and worry-free retirement.
With SBI’s legacy, trust, and wide reach, you can enjoy your golden years with financial comfort, knowing that your money is in good hands.
Mangesh Garg is a passionate writer known for captivating stories that blend imagination and reality. Inspired by travel, history, and everyday moments, He crafts narratives that resonate deeply with readers