Things to know about SBI Annuity Deposit Scheme | Fusion - WeRIndia

Things to know about SBI Annuity Deposit Scheme

Things to know about SBI Annuity Deposit Scheme

State Bank of India (SBI) offers annuity deposit scheme for resident individuals including minors. This scheme intends to provide a fixed amount to customers each month.

For this, customers have to deposit a lumpsum amount onetime. The amount will be given to customers in equated monthly instalments (EMIs). EMIs include principal amount and interest. Interest is calculated on the reducing principal amount. It is compounded quarterly.

Features of the SBI annuity deposit scheme are mentioned below:

  • The minimum deposit amount depends on a minimum monthly annuity of ₹1,000 for a specific period. For instance, the minimum deposit amount is ₹36,000 for three years. There is no maximum deposit amount limit.
  • The scheme is available for 3 years, 5 years, 7 years, and 10 years.
  • The rate of interest is the same as applicable to fixed deposits. However, senior citizens can earn additional interest. It is 0.50 per cent more than the applicable interest rate. SBI staff and pensioners can get 1 per cent above the applicable rate of interest.
  • Nomination facility is also available. SBI issues a universal passbook for this scheme.
  • Overdraft or loan facility is also provided for special cases. It is up to 75 per cent of the balance amount of annuity deposit scheme. If overdraft or loan is taken, the future payments will be deposited in that loan or OD account only.
  • The scheme has transferability as it can be transferred to any other allowed branch.
  • The interest amount is subject to TDS. Furthermore, the interest is rounded off to the lowest rupee to avoid discrepancy in the last instalment.
  • The mode of operation for the annuity deposit scheme is the same as debit account from which the amount is deposited to the scheme.

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