Is it a good idea to consider SBI Annuity Deposit Scheme? Sure it is. Here, minors, retirees, working professionals or house wives can invest a certain amount of money in the bank and receive monthly payments. These payments will consist of the interest rate which is compounded every quarter and discounted at monthly value along with a part of the principal amount.
The SBI annuity scheme allows investment with a minimum monthly annuity of ₹1000. The bank offers interest rates of 3.50% - 7.00% p.a. for investments below ₹2 crores and for deposits above ₹2 crores the interest rates are 5.00% - 6.80% p.a. The minimum amount you deposit in the scheme will depend on how long you want the monthly payout to last. To deposit in the scheme, you can choose any tenure of 3 years, 5 years, 7 years or 10 years.
Get SBI Annuity payments on the same date of the following month as the deposit date. If that date doesn't exist, it will be paid on the first of the following month.
SBI Annuity Deposit Scheme Interest Rates
The annuity deposit scheme interest rates offered by SBI bank are the same as the domestic FD rates for regular and senior citizens. These rates are:
For deposits under ₹2 Crores, the interest rate are as follows:
| Tenure | Interest Rate (p.a) (Regular Citizens) |
Interest Rate (p.a) (Senior Citizens) |
|---|---|---|
| 7 days to 45 days | 3.50% | 4.00% |
| 46 days to 179 days | 4.75% | 5.25% |
| 180 days to 210 days | 5.75% | 6.25% |
| 211 days to less than 1 year | 6% | 6.50% |
| 1 Year to less than 2 years | 6.80% | 7.30% |
| 2 years to less than 3 years | 7% | 7.50% |
| 3 years to less than 5 years | 6.75% | 7.25% |
| 5 years and up to 10 years | 6.50% | 7.50*% |
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Note- The interest rates are subject to change. Please check SBI Bank’s official website for the latest information. *Note: A deposit for tenures of 5 - 10 years will include an additional premium of 50bps (basis points) for senior citizens under the ‘SBI We Care’ deposit scheme.For deposits of more than ₹2 Crores, the interest rate are as follows:
| Tenure | Interest Rate (p.a) (Regular Citizens) |
Interest Rate (p.a) (Senior Citizens) |
|---|---|---|
| 7 days to 45 days | 5% | 5.5% |
| 46 days to 179 days | 5.75% | 6.25% |
| 180 days to 210 days | 6.5% | 7% |
| 211 days to less than 1 year | 6.75% | 7.25% |
| 1 Year to less than 2 years | 6.8% | 7.3% |
| 2 years to less than 3 years | 6.75% | 7.25% |
| 3 years to less than 5 years | 6.25% | 6.75% |
| 5 years and up to 10 years | 6% | 6.5% |
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Note- The interest rates are subject to change. Please check SBI Bank’s official website for the latest information.Are you looking for a business loan?
Features & Benefits of Annuity Deposit Scheme in SBI
The SBI annuity deposit scheme offers a guaranteed income stream for over a specified tenure. It also offers financial stability and security through its key features, helping you get the best out of your investment. These features are:
- Annuity Structure: The scheme enables you to deposit a one-time lump sum amount and receive repayment in monthly annuity instalments comprising part of the principal amount and interest.
- Flexible Deposit Periods: You have the flexibility to choose deposit periods of 36, 60, 84, or 120 months based on their preferences and financial goals.
- Widely Accessible: The Annuity Deposit Scheme is available at all branches of the State Bank of India, making it easily accessible to customers across the country.
- Minimum Deposit Amount: Deposits are based on a minimum monthly annuity of Rs. 1000/- for the chosen deposit period, ensuring affordability and flexibility.
- Premature Withdrawal: Premature withdrawal is permitted for deposits up to Rs. 15,00,000/-, with penalty charges applicable as per the bank's policy for Term Deposits. However, in the event of the depositor's demise, premature payment is allowed without any limit.
- No Maximum Deposit Limit: There is no upper limit on the maximum deposit amount, providing you with the flexibility to invest according to their financial capacity and goals.
- Interest Rates: The scheme offers interest rates that are applicable to Term Deposits for both the general public and senior citizens. Thereby, ensuring competitive returns on investment.
- Anniversary Payment Schedule: Annuity payments are made on the anniversary date of the month following the month of deposit. If this date does not exist (e.g., 29th, 30th, or 31st), the payment will be disbursed on the 1st day of the next month.
- Nomination Facility: You can nominate individuals as beneficiaries under the scheme, providing you an added layer of security and flexibility.
- Overdraft and Loan Facility: In special cases, you may be eligible for overdrafts or loans of up to 75% of the balance amount of the annuity. With disbursement of the overdraft or loan, subsequent annuity payments will be deposited directly into the loan account.
- Universal Passbook Issuance: Instead of a traditional Term Deposit, you will receive a Universal Passbook, which serves as documentation for the annuity scheme, facilitating easy tracking and management of funds.
- Transferability Among Branches: The scheme allows for easy transferability among branches, enabling customers to access their funds conveniently from any branch of the State Bank of India.
SBI Annuity Scheme Eligibility Criteria
To deposit in the SBI annuity scheme, certain criteria must be met, these are:
- Any Indian citizen including minors are eligible to invest.
- You can either invest in a single account or a joint account.
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SBI Annuity Deposit Scheme Calculator
To get the best returns from an SBI annuity deposit scheme, it is important to understand how your deposit is calculated and how much returns you can get on your investment.
To calculate the returns on your investment, you can use the SBI annuity calculator or by using the formula:
A= P( 1+r/n)^(n x t)
Here,
A represents the maturity amount.
P represents the principal amount.
r represents the rate of interest.
n represents the number of times the interest is compounded.
t represents the tenure.
For example:
If the value of
P = ₹1,00,000
r = 6.50%
n = 4
t = 5
Using the provided values in the formula:
A= P( 1+r/n)^(n x t)
A= 1,00,000( 1+0.065/4)^(4 x 5)
A= 1,00,000( 1+0.065/4)^(20)
A= 1,00,000( 1+0.01625)^(20)
A= 1,00,000 x 1.359027
A= 1,35,902.70
So, the maturity amount after 5 years at an interest rate of 6.50% compounded quarterly on a principal amount of ₹1 lakh would be approximately ₹1,35,902.70.
To make smart investment choices, calculating your expected returns ahead of time is important. Using an SBI annuity deposit scheme calculator will further simplify this task. These online tools are convenient and precise, allowing you to assess different investment scenarios and select the best investment amount for your financial goals. To find how much return you can get on your investment, all you need to do is input the principal amount, interest rate and tenure.
Using the calculator will help you get more accurate results. However, ensure you rely on trustworthy websites to calculate your returns and steer clear of platforms that ask for sensitive details or fees for this service.
SBI Annuity Scheme Deposit Methods
SBI's annuity deposit scheme offers multiple deposit options to make it easier for you to invest and deposit in the scheme. Whether you prefer the convenience of savings account transfers, current account, or using your overdraft facility, SBI ensures a multiple and flexible deposit process for you. Here are the different ways you can deposit into the annuity scheme and reap purposeful returns:
- Savings Account Transfer: You can transfer funds from your existing SBI savings account, making it a convenient and straightforward method. You can initiate the transfer through online banking or the SBI mobile app.
- Current Account Transfer: If you hold a current account with SBI, you have the option to utilise it for funding your annuity deposit. Similar to savings account transfers, you can initiate the transfer conveniently through online banking. This provides flexibility for you to diversify your investment portfolio and benefit from the Annuity Deposit Scheme's returns.
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Frequently Asked Questions
You can open an SBI Annuity Deposit Scheme account online through net banking or by visiting the bank branch.
An annuity deposit provides fixed monthly payments, while an RD accumulates savings over time with a lump sum withdrawal.
The minimum deposit you can make in the SBI annuity deposit scheme is ₹1000.
Yes, you can transfer funds from your SBI savings, current, or overdraft accounts to open an annuity deposit account.
FD offers a lump sum deposit with interest at maturity, while annuity provides regular payments over time after a lump sum deposit.
The annuity return rate in SBI is 3.50% to 7.50% p.a.
All Indian citizens including minors are eligible to invest in an SBI annuity deposit scheme.
The tenures available for the SBI annuity deposit scheme are 3, 5, 7 and 10 years.
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