The SBI annuity deposit scheme 2021 provides an investor a fixed monthly income. An annuity scheme is a good option for those individuals who want to receive a fixed monthly income. Under this scheme, a depositor simply needs to deposit a lump-sum amount to receive a monthly fixed income.
After the lump-sum payment depositor will receive a fixed monthly income in the form of EMIs that comprises a portion of the principal amount along with the interest on the reduced principal amount. The SBI annuity minimum deposit amount is based on the minimum monthly payment amount of Rs. 1000 for a given period.
This means that for 3 years the least deposit amount is Rs. 36,000. But, there is no upper limit. What should you know about the scheme? Here is all that mentioned below.
SBI Annuity Deposit Scheme 2021 Benefits
The benefits of the SBI annuity deposit scheme are as follows:
- You can deposit under the SBI unity deposit scheme a lump-sum amount and receive the same in equal installments EMIs along with interest.
- You can invest in an SBI annuity scheme for a period of 3 years, 5 years, 7 years, or 10 years.
- The least amount to be deposited under the annuity scheme depends on a monthly minimum annuity of Rs. 1000 for a given period.
- For the SBI annuity deposit scheme, the rate of interest applicable is the same like it is for SBI fixed deposits (FDs). For example, if you made a payment for five years under this scheme then the interest rate for depositor will be according to the fixed deposit interest rate of five years. Presently on deposits maturing in 5 to 10 years, SBI offers a 5.40 % interest rate. And 5.30 percent is the interest rate for the fixed deposits matured in three years but less than five years.
- To open an annuity account you can use a savings account or OD (Over Draft) account for debiting. The account selected by the investor for debiting should be a valid Internet Banking transactional account. The account should not be locked or dormant.
- Like fixed deposits, senior citizens under the SBI annuity scheme will get 50 basis points above the applicable interest rate.
- For SBI pensioners and SBI staff the interest rate is above 1 percent of the applicable rate.
- A loan facility is available under this scheme. According to the SBI website, you can take a loan up to 75 % of the annuity balanced amount under special circumstances. Further annuity payments after disbursal of loan are deposited in loan account only.
Annuity Scheme Eligibility
Anyone who wants to take the SBI annuity deposit scheme should be a resident of India. Minors can also invest in this scheme. You can invest in an annuity scheme individually or jointly with other persons. The persons falling under NRE and NRO category cannot invest in the SBI annuity scheme.
Annuity Scheme Features
Mentioned below are the key features of the SBI annuity scheme:
- Annuity scheme is available at all bank branches all over India apart from credit specialized intensive branches.
- Deposit period from 36 months, 60 months, 84 months, or 120 months.
- The interest rate for the scheme is the same as the fixed deposits.
- The annuity payment must be made on the anniversary date of the month followed by the deposit month. If dates like 29, 30, and 31 are not available, then they will be paid on the first of the coming month.
- You can transfer an annuity account from one SBI branch to another SBI branch. A nomination facility along with the universal passbook issuance is also available.
- SBI staff and pensioners will get 1% high-interest rates than applicable interest rates.
- The amount of annuity is at least Rs 1000 per month for the period in question.
- In no case, the least deposit amount should be below 25,000 Rs.
- The limit on the maximum deposit amount is not there.
SBI Annuity Deposit Scheme’s Maturity and Tenure
- Premature closure of the scheme is allowed in the event of the death of the depositor
- Up to the deposits of 15 lakhs, premature payment is also permitted.
- As per the SBI this scheme available for 36, 60, 84, and 120 months.
- Penalty on premature closure of the scheme applies as chargeable to term deposits.
SBI annuity deposit scheme 2021 offered by the bank is a deposit scheme in which a depositor makes a payment that is repaid to the depositor in monthly equal installments (EMIs). The EMIs given to the scheme taker comprises of principle along with interest on the reduced principal amount.
This scheme provides a fixed monthly amount to the investor against his deposit that he/she made under this scheme. Payment will begin on the anniversary date of the month. If the date is not available (29, 30, and 31), payment will be paid on the 1st day of the following month.