SBI Annuity Deposit Scheme: Still most people are looking for constant monthly income from their investment. Sometimes, investing in the wrong place creates problems instead of benefits. The State Bank of India came up with the SBI Annuity Deposit Plan, when you pay a one-time lump sum amount and through which you start getting monthly income after a certain time.
SBI Annuity Deposit Plan is a simple scheme where investing a lump sum amount now, promises fixed recurring monthly revenue in the future. Includes a share of the principal sum and interest on the reduction of the principal amount, compounded every quarter and discounted every month.
SBI Annuity Deposit Plan Features
Those who all resident individuals (including minors) can open the SBI Annuity Deposit Plan except NRE or NGO category customers.
The minimum amount of deposit should not be below Rs 25,000.
But, there is no limit on the maximum deposit.
The minimum deposit amount for SBI annuity deposit is based on a minimum monthly annuity of Rs 1000 for the relevant period.
SBI Annuity Deposit Plan comes with a different period of deposit.
This scheme of SBI can be invested in for a period of 36, 60, 84 or 120 months.
Interest rate is applicable as per term deposits rate.
It is not possible for the middle class to raise so much money together.
This scheme of SBI can be invested in for a period of 3 years, 5 years, 7 years and 10 years.
You can debit a saving, current, or OD account to open an annuity deposit account.
The interest payable will be subject to TDS for SBI annuity deposit scheme.
Individuals can also opt for Overdraft or loan up to 75% of the balance amount of the annuity.
Payment will begin on the anniversary date of the month.
At present, SBI pays an interest rate of 5.40% on deposits matured in five to ten years. For FDs maturing in three to less than five years, SBI offers an interest rate of 5.30%.
Senior citizens will get 50 basis points (bps) above the applicable rate in SBI annuity scheme.