SBI Annuity Deposit Scheme Calculator 2026

What is the SBI Annuity Deposit Scheme?

The SBI Annuity Deposit Scheme lets a depositor invest a lump sum with SBI and receive it back as fixed monthly instalments, each one blending part principal and part interest, spread across a chosen tenure. The bank's online calculator does the maths for you: input the amount, tenure, and applicable rate, and it breaks down what your monthly payout looks like and how the principal reduces month by month.

It's a popular retirement tool for resident seniors precisely because it removes the guesswork. But the account itself has to be opened by someone banking as a resident Indian.

Why NRIs in the UAE Can't Open This Specific Scheme

SBI's own eligibility terms are direct on this: the Annuity Deposit Scheme is open to resident individuals (including minors, singly or jointly), but NRE and NRO account holders are excluded. So if you're an NRI in the UAE routing funds through an NRE or NRO account, as almost everyone does, this particular product isn't available to you, regardless of how much you plan to deposit.

This isn't a workaround-able technicality. It's built into how the scheme is structured, so it's worth knowing before you convert AED to INR and transfer a lump sum expecting monthly payouts from this specific product.

How the SBI Annuity Deposit Scheme Calculator Works

For residents who are eligible, the underlying formula is:

A = P × (1 + r/n)^(n × t)

Where P is the principal, r is the annual rate divided by 12, n is the number of monthly instalments, and t is the tenure in years.

Example: a resident depositor puts in ₹6,00,000 for 2 years (24 months).

General category, 7.00% p.a.:

• Month 1: interest of ₹3,500 on ₹6,00,000, so ₹23,500 of the ₹27,000 payout goes toward principal, leaving ₹5,76,500
• Month 2: interest drops to ₹3,364 on the reduced balance, so ₹23,636 goes toward principal, leaving ₹5,52,864

Senior citizen category, 7.50% p.a.:

• Month 1: interest of ₹3,750, principal repaid ₹23,550, balance ₹5,76,450
• Month 2: interest of ₹3,602.81, principal repaid ₹23,697.19, balance ₹5,52,752.81

Every month, more of the payout shifts from interest to principal, until the balance hits zero at the end of the tenure.

What NRIs in the UAE Can Actually Use Instead

If the goal is parking a lump sum in India and drawing a predictable return, here's where UAE-based NRIs do have real options:

• NRE Fixed Deposits: SBI's NRE FD rates currently sit in the 7.25% p.a. range as of April 2026, and the interest is fully repatriable along with the principal. Interest earned on NRE FDs is tax-free in India under Section 10(4) of the Income Tax Act, with no TDS deducted. The catch: NRE FDs cannot be funded using Indian-sourced income, such as rent from an Indian property, only foreign earnings converted into rupees. If you close it before a year, most banks, including SBI, pay no interest at all.
• FCNR Deposits: These let you hold the deposit in foreign currency (say, AED or USD) instead of converting to rupees upfront. The main advantage over NRE FDs is that FCNR deposits eliminate rupee depreciation risk since you never leave the dollar or your home currency, though the trade-off is that FCNR rates tend to run lower than NRE FD rates because they track international benchmarks rather than domestic Indian rates.
• NRO Fixed Deposits: Useful if the money you're depositing originated in India (rent, dividends, or similar). The flip side is that interest earned on NRO FDs is taxable, and the bank deducts TDS before crediting the interest. If your country has a DTAA agreement with India, submitting a Tax Residency Certificate can help reduce that rate, the UAE-India DTAA is one that NRIs in the Gulf frequently rely on for this.

For income-in-retirement specifically, most NRIs end up looking at NPS (if they still hold Indian tax residency status in a given year), LIC's immediate annuity plans, or simply laddering NRE/FCNR FDs so a portion matures every quarter, mimicking the payout rhythm the Annuity Deposit Scheme offers residents.

Who Can Use the SBI Annuity Deposit Scheme

• Resident Indian individuals only, including minors, held singly or jointly
• NRE and NRO account holders are not eligible
• No maximum deposit limit; investment period options include 3, 5, 7, or 10 years
• Loan or overdraft of up to 75% against the remaining annuity balance
• Premature closure permitted up to ₹15 lakh, or without limit in case of the depositor's death

What Affects Your Returns, Whichever Product You Choose

• Deposit amount and prevailing rate at the time you invest, rates are typically pegged to SBI's regular term deposit rates and shift with tenure
• Single vs. joint holding, and how often payouts are scheduled (monthly, quarterly)
• Age of the depositor, which affects payout structuring in annuity-style products
• Add-on features like guaranteed payout periods, a waiting period before disbursal begins, or the ability to transfer the account between branches are available under the pension plan.

Bottom Line for UAE-Based NRIs

The SBI Annuity Deposit Scheme Calculator is a genuinely useful tool, but only if you're eligible to open the underlying scheme, and NRE/NRO account holders aren't. If you're banking from the UAE and want SBI-backed, rupee-linked income, an NRE FD or a laddered FD strategy gets you closer to that steady monthly-income goal without running into an eligibility wall at the branch.