SBI Annuity Deposit Scheme

What is SBI Annuity Deposit Scheme?

Anyone who wishes to use the savings for income support every month should go forward with an SBI annuity deposit scheme. The depositor simply needs to make a lump-sum deposit and obtain income monthly within this scheme

When the deposit is made, a fixed sum will be equated in monthly instalments that will be received by the depositors. This will majorly include the received interest with the principal amount. So, you will receive the deposits along with the earned interest in the form of instalments monthly

Eligibility Criteria

Anyone who is looking forward to an SBI annuity scheme should be a resident individual that could also include a minor. The mode of holding could be jointly or single

Any customer falling into the category of NRE and NRO cannot access this facility

Features of SBI Annuity Scheme

The following are the key features offered by SBI

• This scheme is easily available at all the branches PAN India apart from any branch that is specialized credit intensive.
• The amount on the premise of the monthly annuity is Rs 1000 minimum for the period applicable.
• The minimum amount has to be less than Rs 25,000.
• The interest within this scheme is the same as term deposits.
• For the SBI pensioners and the staff, the payable rate of interest will be 1.00 per cent above the rate applicable.
• The annuity payment to be on the date of the anniversary of the month followed by the deposit month. In case dates are non-existent like 29th, 30th and 31st then it will be paid on the first of the coming month.
• The payment of an annuity, TDS net will be likely credited to the saving or the current account.
• The transferability is permissible amongst SBI branches; the facility of nomination is accessible along with the issuance of universal passbook

Benefits of SBI Annuity Deposit Scheme

Now, before you make the decision to invest in the SBI annuity scheme listed below are some benefits that you should know.

• Tenure of the Scheme: The SBI annuity scheme approaches along with different tenures as well as maturity options. Any depositor looking forward to this scheme can select from the alternatives that are from 3, 5, 7 and 10 years.
• Deposit Amount: The good news within this SBI annuity deposit scheme by no means there is such limit for the depositors, however, any depositor needs to deposit in the scheme with the minimum sum of Rs 25,000.
• Payment: The full payment will be done in advance only when the depositor passes away.
• Interest: The interest rate is mostly similar to that of its term deposits or fixed deposits. The rate of interest is on the premise of the term chosen by the investor. With the recent rates of fixed deposits, the State Bank of India provides 5.9% on those deposits, which are maturing within 1 to 10 years. So, the SBI annuity scheme for 3, 5, 7 and 10 years will fetch the rate of interest 5.9%. In case if the tenure is less than a year and up to 6 months the interest rate of 5.5% will be offered. The senior citizens will be offered the rate of interest of 6.4% for a year up to 10 years.
• Loan: Within this scheme, an overdraft or the loan facility will be received by the depositor up to 75% of the balance sum. In case you opt for a loan, which is disbursed then any future payment will be deposited in the account of the loan

Read Also: Annuity Calculator

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