SBI Annuity Deposit Scheme Calculator

SBI Annuity Deposit Scheme is one of the schemes introduced by SBI to provide a monthly annuity to investors. An investor can expect an annuity payment every month over a fixed period of time if he invests a lump sum amount in the scheme. No maturity value is provided to the investor as the initial investment, along with interest on that, is considered while determining the annuity amounts. The monthly annuities are compounded every quarter, and discounts are considered as well.

The SBI Annuity Deposit Scheme Calculator is available to determine the exact amount of annuity that they can receive on a monthly basis, depending on the investment they make and the rate of interest applied to it.

What is an Annuity?

In layman's terms, an annuity may be regarded as an EMI that is paid to an investor every month, over a fixed period of time, in return for an initial lumpsum investment. The investor may 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. These investments are usually made as a means of pension after retirement that investors can avail of; for this reason, annuities are usually lifelong.

There are various types of annuities that an investor may invest in. A few main types are listed below:

1. Lump-Sum Annuity

When investing in this type of annuity plan, the investor has the option to receive the entire payment as a lump sum instead of installments. This is one of the most common types of annuities that people invest in.

2. Periodic Annuity

This kind of annuity will give the investor a regular stream of income in the form of periodic installments. The payouts may be monthly or at the end of a specific number of years, e.g., 1 year, 10 years, etc.

3. Immediate Annuity

The annuity is paid immediately after the investor makes the initial lump sum investment in this kind of investment. This is one of the less popular forms of investment.

4. Deferred Annuity

This form of investment consists of two phases, the accumulation phase and the payout phase. The investor is required to make premium payments over a specific period of time. This amount is then directed towards buying the specific annuity. Once the purchase is completed, regular annuity payments to the investor begin.

5. Fixed Annuity

The payments in this type of annuity scheme are fixed, and they will remain the same over the entire payout period. This provides a steady stream of income, but capital gains are low.

6. Variable Annuity

This is a high-risk type of investment. The annuity will depend on the market conditions and will increase or decrease according to the fund's performance in the market.

Need for Annuity Calculators

SBI Annuity Scheme Calculator is a digital tool that calculates the premiums required to purchase an annuity. Since annuity schemes are primarily implemented to ensure a regular steady income after retirement, they may be used to determine the sum that an individual will require to ensure a comfortable retirement.

SBI Annuity Deposit Scheme Calculators are quick, convenient, and accurate. They can make complex calculations within minutes and help an investor to determine his financial future in the time to come.

How to use SBI Annuity Deposit Scheme Calculator?

The SBI Annuity Deposit Scheme Calculator is very convenient to use, which is one of the reasons for its popularity among investors. The calculator is freely available for use on the official website of the company. An investor can use the calculator at any time, and he does not need to conform to any working hours to use it. The stepwise method to operate the calculator is listed below:

  • Locate the company website online and click on “Annuity Plus.”
  • Click on the “Premium Calculation” button.
  • Input personal details, such as name, email id, mobile number, gender, etc.
  • The investor will also be asked to mention if he wishes to buy the annuity for one or two lives.
  • He will then have to fill in the annuity details, e.g. if he wishes to receive the annuity as a lump sum payment or regular installments.
  • Click on the “Calculate Premium” button.
  • The premium amount required to purchase the annuity will then be displayed.
  • The investor must then decide if he wishes to continue to purchase the annuity on the basis of the premium amount; if he does, he will then need to enter his details.
  • Next, He will have to enter the details of the annuitant. This refers to the person who will receive the annuity payments. This could be the person who is purchasing the annuity or a beneficiary.
  • Finally, the investor must make an online payment via credit, debit card, or net banking to complete the purchase.

At any time, if the investor is faced with any confusion, he may dial the toll-free helpline number of SBI 1800 267 1800. This number is accessible only from 8.30 am to 9.30 pm.

Information Required

  • The benefits that the investor will receive from his investment in the SBI Annuity Scheme will depend on the type of annuity he chooses, 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 of the investor's wishes as such.
  • Large premiums will automatically attract larger annuity payouts.
  • The investor may choose a monthly, quarterly, annual, or semi-annual frequency of payment for the annuity payouts.

Benefits of the Calculator

Listed below are the benefits of using the SBI Annuity Deposit Scheme Calculator: 

  • It is a freely available digital tool available online that investors can use at their convenience.
  • It can be easily operated, and all the steps to use it are clearly mentioned on the company website.
  • It provides accurate calculations as many times as the investor needs.
  • It gives the investor a clear picture of the amount of investment he needs to make in the present to guarantee a safe retirement in the future.
  • It saves the investor the tedious process of going through all the investment possibilities by himself.

FAQs

Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C apply.

**Tax benefit is subject to changes in tax laws. Standard T&C apply.

Written By: PolicyBazaar - Updated: 08 June 2021
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