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SBI Annuity Deposit Scheme

State bank of India gives you an Annuity Deposit Scheme where you will deposit a lump sum amount with the bank and get a monthly payment that also has the principal amount and the interest that has accrued on the diminishing principal amount that is held with the bank. They are also called monthly annuity installments. The tenure of the deposits is either three years, five years, seven years, or ten years. The rate of interest is also the same as the term deposit of the same period. Also, the senior citizens would be getting an additional interest rate that is applicable on term deposits. This scheme does not have an upper limit, but the minimum deposit of the scheme is Rs. 25,000. In various cases, you can get a loan of up to 75% of the balance amount. It is transferable among all branches of SBI.

SBI Annuity Deposit Scheme Interest Rates (2022)

Period

Interest Rate for General Citizens

Interest Rate for Senior Citizens

7 - 45 days

2.90%

3.40%

46 - 178 days

3.90%

4.40%

179 - 364 days

4.40%

4.90%

1 - 2 years

5%

5.50%

2 - 3 years

5.10%

5.60%

3 - 5 years

5.30%

5.80%

5 - 10 years

5.40%

6.20%

Features of the SBI Annuity Deposit Scheme

Mentioned below are the features of the SBI Annuity Scheme:

  • The minimum amount of deposit for the scheme is Rs. 25,000.
  • The scheme is also easily accessible at all of the branches in India, and apart from any branch that has a specialized credit intensive.
  • The amount on-premise for the monthly annuity is Rs. 1,000 minimum for the tenure that is applicable.
  • The interest in the scheme is the same as a term deposit.
  • For pensioners of SBI and also the staff, the payable interest rate would be 1% above the rate applicable.
  • The payment of an annuity, TDS net, would be likely credited to the current or the savings account.
  • The transferability is permissible amongst SBI branches, and the facility of nomination is easily accessible with the issuance of a universal passbook.
  • The annuity payment of the scheme is to be on the date of the anniversary of the month, followed by the deposit month. 
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Components of the SBI Annuity Scheme

1) Premature Payment 

A premature payment under this scheme is allowed in the event of the death of the depositor of the scheme. To prematurely withdraw the deposit by looking for the concurrence of the legal heirs of the deceased or joint account holders. The bank is also entitled to honor the same rule.

2) Facility for Loan

The scheme allows for an overdraft or loan of up to 75% of the annuity balance amount in certain situations. Following the disbursement of such a loan, periodic annuity payments will be put in the borrower's loan account.

3) Taxes on the Interest Earned

For Annuity deposits, interest is subject to TDS. The amount of interest calculated is rounded off to the next rupee value; as a result, the last annuity installment may differ.

4) Interest Rates

Depending on the period chosen by the customer, the SBI annuity FD account offers a return comparable to other SBI term deposits. One-tenth of a percentage point is equal to one basis point.

5) Maturity Amount

The principal and interest on lowering principal are paid in installments over a period of time in an Annuity deposit Scheme, so the maturity amount remains zero maturity.

6) Eligibility

The SBI annuity scheme is offered to all Indian residents, including minors. Customers who are NRE or NRO are not eligible for the annuity FD plan.

Eligibility for the SBI Annuity Deposit Scheme

Any that is looking forward to an SBI annuity scheme needs to be an individual that would also be inclusive of a minor. The mode of holding could be single or jointly. Any client that falls into the category of NRE and NRO is not eligible to access the facility.

Benefits of the SBI Annuity Scheme

Investing in the SBI annuity scheme has several benefits that are mentioned below:

1) Period of investment: The SBI annuity scheme approaches a varied tenure opportunity, along with maturity options. A depositor who looks for a flexible scheme can choose from alternatives starting from days to 10 years.

2) Mode of Payment: The entire payment would be made in advance only when the depositor has passed away, and it ensures a safe lock-in.

3) Amount of Deposits: The SBI annuity deposit scheme does not have an upper limit of deposition.

4) Loan Opportunity: Within the scheme, the depositor can overdraft a loan facility of up to 75% of the balance sum in the account.

Comparison of FD rates

Name
Tenure
Highest Interest Rates
1
2
3
4
5

FAQs

Q1. How is an annuity deposit different from an RD account?

The customers that start an RD account need to make payments in installments, and the maturity amount is presented to the customers on the maturity date. Annuity deposits would allow customers to make a one-time deposit so that the amount, in addition to interest on a diminishing principal and also will be given back to the customer in installments over the already-decided period.

Q2. What is the minimum deposit that I could make in the SBI annuity deposit scheme?

There is no upper limit to the deposit you can make to this scheme, but the minimum amount is Rs. 25,000.

Q3. Can I debt money from other accounts to open an annuity deposit account?

Yes, you will be allowed to debit OD, current, or savings accounts to open the deposit account.

Q4. Can I make premature payments with the SBI annuity deposit scheme?

The bank would usually not approve of premature payments, but the customers would be allowed to do so in the case of the death of the depositor.

Q5. Is the SBI annuity deposit scheme different from an FD scheme?

With an FD account, you will have to make an initial deposit, and you will get the principal and interest during maturity. Annuity deposits need the customer to make a one-time deposit so that the amount along with interest could be given back to the customer over the predetermined tenure that is chosen by you.

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