What is the scheme provided by SBI?

SBI special FD scheme for senior citizens will fetch 80 basis points (bps) interest rate above the rate applicable to the general public. At present, SBI gives a 5.4% interest rate on five years FD for the general public. If a senior citizen puts a fixed deposit under the special FD scheme, then the interest rate applicable to the FD will be 6.20%. This additional interest i.e., 30 bps under the special scheme for senior citizens will not be payable in case of premature withdrawal of such deposits.

Therefore, if you opt for premature withdrawal of an FD under the scheme, your fixed deposit investment will fetch only 5.9% i.e. 50 bps above the general customers.