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State Bank of India (SBI) has launched a special savings scheme. In this SBI Annuity Deposit Scheme, customers can get a fixed monthly income.

Before anyone invests money they think about the risk a lot. Looking for ways to provide stable, secure income. State Bank of India (SBI) has launched a special savings scheme for such people. In this SBI Annuity Deposit Scheme, customers can get a fixed monthly income. In this scheme you deposit a lump sum amount. After that they receive monthly payments which include interest and a portion of the principal. Interest is calculated for this scheme every quarter just like Bank Fixed Deposit (FD). It is paid every month along with the principal. Let's know the complete details about the features and benefits of this scheme.

Features of SBI Annuity Deposit Scheme

Lump Sum Deposit: You have to deposit a lump sum once. SBI will then pay you in monthly installments.

Calculation of Interest: Interest is compounded every three months (quarterly). The interest rate offered by SBI on Term Deposits (FD) is the same.

Flexible Deposit Periods: You can choose to deposit your money for 36, 60, 84 or 120 months.

No Maximum Limit: There is no limit on the maximum amount you can deposit.

Minimum Annuity: The minimum monthly payment you will receive is Rs.1,000.

Availability: The scheme is available at all State Bank of India branches in India.

Monthly payments

Once you deposit a lump sum amount at once, the monthly payments will start from the next month on a fixed date. For example, if you make a deposit in January, you will start receiving payments in February. If the month does not have that date (such as the 29th, 30th or 31st), payment will be received on the 1st of the following month. Monthly payments are credited to your linked savings or current account. Taxes like TDS are deducted.

 Who can open an account under this scheme?

Any resident of India including a minor can open an account under this scheme. Both general customers and senior citizens can benefit from the scheme. Senior citizens receive a higher interest rate. Accounts can also be opened in the name of minors. Account can be opened in single or joint names.

You can choose someone as a nominee to receive the money in case of your unfortunate death. If required you can transfer your account from one SBI branch to another branch. SBI provides Passbook to track all your transactions.

* Loan, overdraft facility

If you need money, you can take a loan or overdraft up to 75% of the balance in the scheme. Once you take the loan, the monthly annuity payments are directly deposited into the loan account.

Penalties for premature closure

In case of death of the account holder the account can be closed early. Also, if your deposit is less than Rs.15 lakh, you are likely to close the account early. But charges are to be borne like fixed deposits. The penalty rate is almost same as the rate applicable to FD.