SBI Annuity Deposit Scheme
The State Bank of India is a multinational public sector bank that offers a huge variety of schemes and plans for their customers. One of the diverse schemes offered by SBI is the SBI Annuity Deposit Scheme. This annuity deposit scheme is suited for those individuals who are keenly looking forward to obtaining a fixed monthly income by depositing a lump sum amount in the bank account.
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- 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.
SBI Annuity Deposit Scheme Interest Rates 2022
| Tenure | Normal Citizens | Senior Citizen |
| 7 days to 45 days | 2.90% | 3.40% |
| 46 days to 178 days | 3.90% | 4.40% |
| 179 days to 364 days | 4.40% | 4.90% |
| 1 year to 2 years | 5% | 5.50% |
| 2 years to 3 Years | 5.10% | 5.60% |
| 3 Years to 5 Years | 5.30% | 5.80% |
| 5year to 10 Year | 5.40% | 6.20% |
Features of SBI Annuity Scheme
The following are the key features offered by SBI
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This scheme is easily available at all the branches PAN India apart from any branch that is specialized credit intensive.
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The amount on the premise of the monthly annuity is Rs 1,000 minimum for the period applicable.
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The minimum amount has to be less than Rs 25,000.
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The interest within this scheme is the same as term deposits.
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For the SBI pensioners and the staff, the payable rate of interest will be 1.00 per cent above the rate applicable.
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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.
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The payment of an annuity, TDS net will be likely credited to the saving or the current account.
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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.
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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 1, 2, 3, 5, 7 and 10 years.
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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.
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Payment:
The full payment will be done in advance only when the depositor passes away.
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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 5.40% on those deposits, which are maturing within 1 to 10 years. So, the SBI annuity scheme for 1, 2, 3, 5, 7 and 10 years will fetch the rate of interest 5.40%. In case if the tenure is less than a year and up to 6 months the interest rate of 4.40% will be offered. The senior citizens will be offered the rate of interest of 6.20% for a year up to 10 years.
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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
FAQ's
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Q. Is SBI annuity deposit different from the recurring deposit and fixed deposit account?
A. Within a recurring deposit account, the payments made by the customers are done in instalments and the maturity sum is received at the maturity date. In case of SBI annuity scheme, the deposit is accepted as one time and that sum including the interest upon reducing the principal is then repaid in instalment to the customer over the selected period.
When it comes to a fixed deposit account the customer makes the one-time deposit and obtains the maturity sum upon the maturity date that consists of interest and principal in case of STDR, however in case TDR principal is received as the interest is paid at the intervals periodically. On the other hand, an annuity deposit is only gone by one-time deposit and the sum is repaid to its customers over the selected term including the interest in EMI’s -
Q. What is the maturity amount in the SBI annuity deposit?
A. The maturity sum will remain zero because part of the principle and interest upon the reducing principle over a period will be paid in instalment at the maturity date -
Q. What are the minimum and maximum limits for SBI annuity deposit?
A. The minimum deposit sum for the monthly annuity is Rs. 1,000 for 3 years, which makes the minimum deposit amount Rs. 36,000. The limit for the maximum sum via internet banking will be the equivalent as applicable for the transfer of funds. -
Q. What is the minimum and maximum period of deposit?
A. The SBI annuity scheme is accessible for 1, 2, 3, 5, 7 and 10 years. -
Q. Can senior citizens avail additional rate of interest on SBI annuity deposit?
A. Yes, the senior citizen can easily access the additional interest rate -
Q. What is the rate of interest on SBI annuity deposit scheme?
A. It will apply to the tenor of the term deposits as chosen by the depositor. -
Q. Can I set the maturity instructions for an annuity deposit account?
A. No, the maturity instructions are not at all applicable. -
Q. How to add nominees?
A. When opening an SBI annuity deposit account, you will be offered with an alternative wherein the nominee can be retained for the deposit account that is the account of debit from where it is essentially funded -
Q. Is it possible to close an annuity deposit account online?
A. No, the premature payment is only allowed via branch and that too only when the depositor is no more. -
Q. Under whose name can SBI annuity deposit account be opened? Also, what would be the mode to operate?
A. The name, branch and mode of operation of the recently generated annuity deposit account will be equivalent as in the debit account from where the account of annuity deposit is funded -
Q. Does an SBI annuity deposit scheme subject to the TDS?
A. The interest payable will be liable to TDS for the annuity store. The interest sum computation is adjusted to the most reduced rupee esteem, because of this there can be variations in the last annuity portion -
Q. What are the Terms and Conditions for SBI Annuity Deposit Scheme?
A. Listed below are the terms and conditions that one should be aware of:
The penalty on premature is chargeable just like a term deposit.
The premature closure is permissible only when the depositor passes way. Moreover, the premature payment is granted only when the deposit is up to Rs 15 lakh
