The State Bank of India (SBI) offers its customers the SBI Annuity Deposit Scheme, which provides a great opportunity to earn regular monthly income by making a one-time deposit.
Under this scheme, customers receive both the principal and interest in monthly installments.
The interest is compounded quarterly on the remaining balance, providing an attractive way to grow your funds.
According to the SBI website, the interest rate in this scheme matches the interest rate on regular Fixed Deposits (FDs).
Scheme Duration and Deposit Details
Customers opting for the SBI Annuity Deposit Scheme can choose to deposit their funds for different durations: 36, 60, 84, or 120 months.
The minimum annuity amount is ₹1,000 per month, and there is no upper limit on the deposit amount. This scheme is available across all SBI branches, making it widely accessible.
Monthly Payments and Benefits
The monthly payment under this scheme starts from the fixed date of the following month after the deposit is made.
If the month lacks the chosen date (e.g., 29, 30, 31), the payment will be made on the 1st of the next month.
Annuity payments are credited to the linked savings or current account after TDS is deducted.
In addition, both regular customers and senior citizens can benefit from the interest rates offered on term deposits.
The scheme also provides a nomination facility, a universal passbook, and the option to transfer the account from one branch to another.
Loan and Early Closure Options
Customers can also avail of an overdraft or loan facility under this scheme, up to 75% of the annuity balance. The annuity payments will be credited directly to the loan account if a loan is taken.
The scheme can be prematurely closed in case of the depositor’s death, or pre-payment is allowed for deposits up to ₹15 lakh. In cases of early withdrawal, a pre-maturity penalty applies, similar to SBI’s FD rules.
Indian residents, including minors, can open the account, either in single or joint mode, offering flexibility to different customers.
