SBI Annuity Deposit Scheme

The SBI annuity deposit scheme is suited for those individuals who are keenly looking forward to obtaining monthly income that is fixed.

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 SBI annuity deposit 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 Deposit Scheme

The following are the key features offered under SBI annuity deposit scheme:

• 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 of SBI annuity deposit scheme 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 29^th, 30^th and 31^st 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 investment decision to invest in the SBI annuity deposit scheme listed below are some benefits that you should know:

• Tenure of the Scheme: The SBI annuity deposit 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: Within the SBI annuity deposit scheme, the full payment will be done in advance only when the depositor passes away.
• Interest: The interest rate offered by the SBI annuity deposit scheme 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 deposit 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 from the SBI annuity deposit scheme will be deposited in the account of the loan.

Read Also: Annuity Calculator

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