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.
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:
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.
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.
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.
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.
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.
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.
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.
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:
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.
Listed below are the benefits of using the SBI Annuity Deposit Scheme Calculator:
A1. No. Investments in the scheme can be made only by resident Indians.
A2. The minimum amount that can be deposited is Rs. 36,000. There is no limit to the maximum amount that an investor can deposit in the scheme.
A3. Yes. SBI Annuity Deposit Scheme guarantees special rates for all senior citizens.
A4. Yes. An investor may change his nominee by paying a visit to the nearest branch office of SBI.
A5. An annuity deposit may be made for 3, 5, 7, or 10 years, as per the convenience of the investor.
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*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.