SBI Annuity Deposit Scheme Calculator

What is an SBI Annuity Deposit Scheme?

An SBI Annuity Deposit Scheme is a financial arrangement where an individual deposits a lump sum of money with an insurance company or financial institution in exchange for a series of periodic payments. In layman's terms, the annuity meaning can be understood as an EMI paid to an investor every month, over a fixed period, in return for an initial lump sum investment made by him. 

• The investor can make the initial investment at his convenience. 

• The principal and interest (diminishing interest on principal) are both returned to the investor in the form of a monthly annuity. 

• Investors commonly choose these investments options with the aim of securing a post-retirement pension. As such, annuities typically provide lifelong benefits.

Moreover, you can use the SBI annuity deposit scheme calculator to calculate your monthly annuity payments and applicable interest rates based on your initial investment amount. 

Formula to Calculate SBI Annuity Deposit Scheme Payout

The monthly payout under the SBI Annuity Deposit Scheme is calculated using a compound interest-based formula:

This formula ensures that each monthly annuity includes both interest earnings and a portion of the principal, distributed evenly over the chosen tenure.

Example For SBI Annuity Deposit Scheme

Investment Amount: ₹6,00,000
Tenure: 2 years (24 months)
Interest Rates:

• General Category: 7.00% p.a. (0.5833% monthly)
• Senior Citizen: 7.50% p.a. (0.6250% monthly)

Let’s assume the calculated monthly annuity (using the annuity formula) is:

• General: ₹27,000
• Senior Citizen: ₹27,300

General Category (7.00% Interest)

Month 1

• Interest: ₹6,00,000 × 7.00% ÷ 12 = ₹3,500
• Principal Repaid: ₹27,000 – ₹3,500 = ₹23,500
• Remaining Principal: ₹6,00,000 – ₹23,500 = ₹5,76,500

Month 2

• Interest: ₹5,76,500 × 7.00% ÷ 12 = ₹3,364
• Principal Repaid: ₹27,000 – ₹3,364 = ₹23,636
• Remaining Principal: ₹5,76,500 – ₹23,636 = ₹5,52,864

Senior Citizen Category (7.50% Interest)

Month 1

• Interest: ₹6,00,000 × 7.50% ÷ 12 = ₹3,750
• Principal Repaid: ₹27,300 – ₹3,750 = ₹23,550
• Remaining Principal: ₹6,00,000 – ₹23,550 = ₹5,76,450

Month 2

• Interest: ₹5,76,450 × 7.50% ÷ 12 = ₹3,602.81
• Principal Repaid: ₹27,300 – ₹3,602.81 = ₹23,697.19
• Remaining Principal: ₹5,76,450 – ₹23,697.19 = ₹5,52,752.81

Eligibility Conditions for SBI Annuity Scheme

Let us look at the important eligibility conditions required to join the SBI Annuity Deposit Scheme:

• Indian Resident individual (can also be minor).

• The investor can hold a single or joint account.

• NRIs with NRE or NRO Accounts are not eligible.

Features of the SBI Annuity Deposit Scheme

The features of the SBI Annuity Deposit Scheme are mentioned as follows:

• Investment Deposit Period: 3/5/7/10 Years.

• The flexibility of the investment period with multiple tenures and maturity options is available.

• The term deposit interest rates are applicable in this scheme.

• The scheme is available at all SBI branches with a transferability facility.

• Maximum deposit amount = No Limit.

• Loans or overdrafts of up to 75% on the remaining annuity balance are granted.

• A nomination facility is available.

• Premature deposits are allowed up to Rs. 15 lakhs.

• Premature closure of the scheme is allowed in case of the death of the depositor.

• You can also access the free online tool called the SBI annuity deposit scheme calculator to estimate your monthly annuity payments and applicable interest rates based on your initial investment amount. 

SBI Annuity Deposit Scheme Interest Rates 2025

Take a glance at the following annuity interest rates of the SBI Annuity Deposit Scheme as recorded for the mentioned period of investments:

Note: Interest rates as of 16th May 2025.
Disclaimer: Policybazaar does not endorse, rate, or recommend any particular company or product. The policyholder bears the investment risk in the investment portfolio.

Components Of The SBI Annuity Scheme

1. Interest Rate:

   Rates vary with tenure; 1/10th of the annuity scheme's percentage point equals one basis point.

2. Eligibility:

   Open to all Indian residents, including minors; unavailable for NRIs.

3. Taxation:

   TDS charges apply; interest rounded off to the next rupee may impact the last installment.

4. Premature Payment:

   Allows early installment payment upon the investor's death; heirs or joint account holders can claim returns.

5. Maturity Amount:

   Principal and interest paid over the tenure reduce the maturity amount to zero at the end.

Why Should You Use SBI Annuity Deposit Scheme Calculator?

Any individual who is looking to invest in SBI Annuity Deposit Schemes should use the SBI Annuity Scheme for the following reasons:

• SBI Annuity Scheme Calculator is an online tool that calculates the premiums required to purchase an annuity. 

• It can be used to determine the sum an individual will need to ensure a comfortable retirement planning.

• SBI Annuity Deposit Scheme Calculator is a quick, convenient, and accurate online tool.

• It can make complex calculations within minutes and help an investor determine his financial future.

How To Use Policybazaar’s SBI Life Annuity Deposit Scheme Calculator?

The stepwise method to use the SBI Annuity Deposit Scheme Calculator 2025 is listed below:

Step 1:

Input your current age in years

Step 2:

Specify the amount you are willing to invest in the National Pension Scheme every month

Step 3:

Provide the expected rate of return on your investments

Step 4:

Decide the percentage of the accumulated corpus that you want to allocate for receiving a pension in the future

Step 5:

Enter the expected rate of return for the pension phase

Step 6:

The calculator will show you the estimated monthly pension, lump sum amount, and pension wealth

SBI Annuity Calculator Results

The SBI Annuity Calculator provides a clear estimate of your future pension based on your current investment inputs. It displays:

• Your projected monthly pension amount
• Total investment made over the years
• Returns earned on your investment
• Maturity amount at retirement
• A split of the maturity amount into lump sum and pension corpus

Factors That Influence SBI Annuity Deposit Scheme Returns

Below are the facts that affect the SBI annuity deposit scheme: 

1. Investment Amount and Interest Rate

   Your monthly payout is directly linked to how much you invest. A higher lump sum leads to bigger monthly instalments. Additionally, the interest rate applicable at the time of deposit plays a key role. These rates are typically based on SBI’s regular term deposit rates and may vary depending on the chosen tenure.

2. Type of Annuity and Payment Schedule

   The structure of the annuity matters. Whether it’s a single-holder or joint-holder annuity affects who receives the payout and for how long. For example, in joint cases the surviving partner might continue to receive the income. You can also select how often you want to receive the funds—monthly, quarterly, or another interval.

3. Age and Other Personal Factors

   The annuitant’s age influences the payout size. Older individuals tend to receive more, as the payout period is expected to be shorter. In some cases, gender may also impact the annuity amount.

4. Additional Features and Conditions

   Some schemes include guaranteed income for a fixed number of years or allow a waiting period before payments begin. SBI also offers the flexibility of taking a loan or overdraft against the annuity deposit. Keep in mind that the annuity income is taxable. For added convenience, the account can be transferred between SBI branches.

Benefits of the SBI Annuity Deposit Scheme Calculator

The benefits of using the SBI Annuity Deposit Scheme Calculator are: 

• It is a freely available tool available online that investors can use at their convenience.

• SBI Annuity Deposit Scheme Calculator 2025 can be easily operated, and all the steps to use it are clearly mentioned on the company website.

• SBI Annuity Scheme calculator provides accurate calculations as per the needs of the investor.

• It shows investors the exact amount that needs to be invested for a secure retirement later.

• SBI Annuity Calculator saves the investor from the complicated process of going through all the investment possibilities by himself.

Important Things to Remember Before Buying the SBI Annuity Plan

Here are a few important things that an investor should know before buying the SBI Annuity Deposit Plan:

• The benefits the investor will receive from the investment will depend on the type of annuity they choose, the frequency of annuity payout, and the rate of interest applied to the annuity at the time of purchase.

• The benefits received from the SBI Annuity Deposit Scheme are to be considered as taxable income and are, therefore, subject to Income Tax laws.

• The payouts may be available in advance as per investors preferences.

• Large premiums will automatically attract larger annuity payouts.

• The investor can choose a monthly, quarterly, annual, or semi-annual frequency of payment for the annuity payouts.

To Sum It Up!

SBI offers you annuity plans that aim to secure your retirement years and make your post-retirement life tension-free and enjoyable with retirement plans. Using the SBI Annuity Scheme Calculator will help you make smart and knowledgeable decisions. This will ensure not to let any confusion stay in your mind and make you confident in your investment.