SBI Annuity Deposit Scheme: Interest Rates, Features, and Benefits
As a global public sector bank, the State Bank of India offers its clients several programs and initiatives. Among their many different plans is the SBI Annuity Deposit Scheme. An SBI annuity deposit scheme should go ahead with anyone desiring to use the savings for income support every month. The necessary thing in this scheme is to make a lump sum deposit and get monthly income within this scheme.
A fixed amount will be equalised in monthly instalments, which the depositors will receive after the deposit. This will constitute a significant part of the principal amount received with the interest. Thus, you will receive the deposits and interest in instalments every month.
Eligibility Criteria
Any person desiring to avail of the SBI annuity scheme should:
- Be a resident individual, which can also be a minor.
- The mode of holding could be either joint or single.
- Any customer in the NRE and NRO category cannot use this facility.
SBI Annuity Deposit Scheme Interest Rates
The following table shows SBI Annuity Deposit scheme interest rates:
| Tenure | Interest Rates for General Citizens | Interest Rates for Senior Citizens |
| Seven days to 45 days | 3.00% | 3.50% |
| 46 days to 179 days | 4.50% | 5.00% |
| 180 days to 210 days | 5.25% | 5.75% |
| 211 days to less than a year | 5.75% | 6.25% |
| One year to 2 years | 6.80% | 7.30% |
| Two years to 3 years | 7.00% | 7.50% |
| Three years to 5 years | 6.50% | 7.00% |
| Five years to 10 years | 6.50% | 7.50% |
Features of the SBI Annuity Scheme
- This lets the customer put down a one-time big sum of money and get it back in monthly installments that include interest and part of the initial amount.
- Select a deposit period of 36, 60, 84, or 120 months.
- Available at every branch location
- A prerequisite monthly annuity of ₹ 1000/-for the applicable term forms the basis of the deposit amount.
- Premature payment is permitted investments of up to ₹ 15,00,000/-. The penalty is chargeable, as applicable to term deposits.Premature withdrawal is permitted without restriction in the event of the depositor's death.
- Rate of interest applicable to term deposits for the general public and senior citizens
- no upper limit on deposit amounts.
- Annuity payments are scheduled on the month's anniversary date after the deposit is made.
- It will be paid on the first day of the following month if that date is present (29th, 30th, or 31st).
- Nomination is available in favour of individuals only
- Overdraft/loan of up to 75% of the annuity balance may be granted in exceptional cases.
- Any further annuity payments will only be placed into the loan account once the OD/loan has been disbursed.
- The Universal Passbook is issued instead of the Term Deposit.
- Transferability is allowed among branches.
Benefits of the SBI Annuity Deposit Scheme
Herein are the underrated benefits of selecting the SBI annuity scheme for investment.
- Tenure of the Scheme: There are a variety of tenures and maturity choices available in the SBI annuity plan. There are a variety of terms available to depositors in this programme, including1,2,3,5,7, and 10 years.
- Deposit Amount: The one positive aspect of this Annuity plan is that there is no limit for the depositors; however, a depositor needs to deposit in the scheme with a minimum sum of Rs. 25,000.
- Payment: The total payment amount will be made in advance only after the depositor's death.
- Rate of Interest: Its rate of interest is quite comparable to that of fixed deposits and term deposits.
- Loan: Under this scheme, the depositor will receive an overdraft facility or loan of up to 75% of the balance sum. Any future payment will be deposited in the loan account if one goes for the disbursed loan.
- Tax benefits SBI annuity scheme: If you're looking to save money on taxes, there are a couple of options: the SCSS's Section 80C benefit and LIC's deferred annuity plan. Also, neither POMIS nor the SBI Annuity Deposit Scheme accept it. You may deduct up to Rs 50,000 in interest income from banks and post offices under section 80TTB, which is a tax advantage for recurring income. This benefit is not available with the life annuity plan, but it is available with SBI ADS, SCSS, and POMIS.
Conclusion
For investors seeking a fixed deposit-like source of consistent income over the long term, the SBI Annuity Deposit Scheme would be a suitable option. Investors with a limited tolerance for risk could benefit from this strategy. Lastly, before applying, remember that the interest rates for this program are subject to regular modifications and fluctuate over time.