An annuity deposit scheme enables depositors to Make one-time lump sum payments which they can receive in EMIs that comprise a portion of the principal amount in addition to the interest on the diminishing principal amount, discounted to the monthly value after being compounded to quarterly rests. Customers will have to start making interest payments exactly a month after the date on which the deposit was made. In case the date does not exist (such as the 29th, 30th or 31st), the payment has to be made on the first day of the following month.

The State Bank of India (SBI) offers Annuity Deposit Scheme for people who want to get a fixed monthly income. Depositors can get monthly income from this scheme after making a one-time lump sum deposit. This scheme is ideal for people who want to use their savings for monthly income support.

Features

  • To enable the customer to deposit a one-time lump sum amount and receive re-payment of the same in monthly annuity instalment comprising part of the principal amount plus interest.
  • Period of deposit from 36/60/84 or 120 months
  • Available at all branches (except specialized credit intensive branches) all over India.
  • Amount Based on minimum monthly annuity Rs 1000/- for the relevant period.
  • In no case, the Minimum Amount of deposit should be below Rs. 25,000/-
  • Maximum deposit amount No Limit
  • Rate of interest as applicable to Term Deposits.
  • The interest rate payable to SBI Staff and SBI pensioners will be 1.00% above the applicable rate.

Deposit amount – Even though there is no maximum limit, account holders need to make a deposit of minimum Rs 25,000 in the SBI annuity deposit scheme.

Tenure – This deposit scheme comes with various maturity options, and depositors can choose from tenures ranging from 3 years to 5 years, 7 years and 10 years.

Rate of interest – The rate of interest applicable to this scheme is similar to what is offered on term/fixed deposits, which depends on the tenure opted by the depositor. According to the latest revised FD rates, SBI offers 6 per cent interest on deposits maturing in 1 year to 10 years. So, for 36 months, 60 months, 84 months or 120 months, the SBI annuity deposit scheme will fetch you an interest rate of 6 per cent. For 6 months to less than 1 year, depositors will get an interest rate of 5.5 per cent. Senior citizens for a tenure of 1 year and up to 10 years will get an interest rate of 6.50 per cent.

Premature Payment – According to the SBI official website, premature payment under the SBI annuity deposit scheme is only allowed in case of the death of the depositor.