Today, saving money is not enough. Most people now want their savings to grow and give regular income, especially retirees and those looking for financial stability.
One such option is offered by State Bank of India through its Annuity Deposit Scheme, designed to provide fixed monthly income from a one-time investment.
What is SBI’s Annuity Deposit Scheme?
This scheme works in a simple way.
You deposit a lump sum amount once, and in return, the bank pays you a fixed amount every month.
The best part is certainty:
You know in advance how much money you will receive
Payments start as early as the next month
It helps in easy financial planning
This makes it a good option for people who want steady and predictable income.
How Much Can You Earn?
The monthly payout includes both your principal and interest, spread over a chosen period.
For example:
A deposit of ₹10 lakh can give around ₹11,000–₹12,000 per month (depending on interest rate and tenure)
Interest is calculated similar to Fixed Deposits and is compounded quarterly, which improves returns over time.
Key Features You Should Know
Here are some important highlights of the scheme:
Minimum investment starts from ₹1,000
No maximum limit on investment
Tenure ranges from 3 to 10 years
Monthly payouts remain fixed throughout the period
Final balance becomes zero at the end of the tenure
This structure works like a reverse EMI, where your investment is paid back to you in parts.
Flexibility When You Need Money
Even though it is a long-term plan, you are not completely locked in.
You can take a loan up to 75% of your deposit
This gives liquidity during emergencies
So, you get both stability and some flexibility.
Who Should Consider This Scheme?
This scheme is best suited for:
Retirees looking for regular income
Risk-averse investors
People who want fixed monthly cash flow
It may not offer very high returns, but it provides safety and predictability, which many investors value.
Final Takeaway
The Annuity Deposit Scheme by State Bank of India is a simple and reliable way to turn a one-time investment into steady monthly income.
If your goal is financial stability rather than high risk returns, this can be a practical option.
However, always check the latest interest rates with your bank before investing.
