SBI Annuity Deposit Scheme- Features & Eligibility

The State Bank of India (SBI) Annuity Deposit Scheme is a customer-centric financial product designed to provide a steady monthly income for individuals seeking a secure investment avenue. Launched by the largest public sector bank in India, the SBI annuity deposit scheme offers a straightforward and accessible way for investors to accumulate wealth over time.

Under this scheme, individuals make a lump sum deposit, and in return, receive regular monthly payouts. The simplicity and reliability of the SBI Annuity Deposit Scheme make it an attractive option for those looking to secure a stable income without the complexities of traditional investment instruments.

This deposit scheme underscores SBI’s commitment to offering beneficial and uncomplicated financial solutions for its diverse customer base.

Annuity Deposit Scheme Features

The annuity deposit scheme carries several features:

  • The least amount a depositor needs to deposit for this scheme is Rs. 25,000.
  • An investor can deposit funds in this scheme for 3 years, 5 years, 7 years, or 10 years.
  • This scheme is easy to get at any SBI branch in India, even those with fancy credit stuff.
  • The least amount you get every month from this scheme is Rs. 1,000, at least for the time it runs.
  • The interest you get from this scheme is like what you get from a term deposit scheme.
  • If you’re an SBI pensioner or part of the staff, the interest you get is 1% more than the regular rate.
  • In special cases, you might get a loan or overdraft of up to 75% of the deposit from your annuity balance.
  • The money you get from the annuity, after the tax cut, goes straight into your current or savings account.
  • You can shift this scheme around SBI branches.
  • In the case of individuals nominee can be selected under this scheme
  • You get paid from this scheme on the anniversary date every month, following the month you paid in.

Benefits of the SBI Annuity Scheme

  • With the SBI annuity scheme, depositors can make a one-time lump sum payment and receive it back in the shape of monthly installments.
  • Interest rates for the scheme are aligned with SBI’s term deposits, offering flexibility based on the chosen investment tenure, with additional rates for senior citizens.
  • Premature withdrawal is permitted in the unfortunate event of the depositor’s demise.
  • Depositors can avail a loan of up to 75% of the total amount in his/her annuity account.
  • No maximum deposit limit applies to SBI Annuity scheme deposits.
  • Opening an annuity deposit account is convenient, allowing debits from savings, current, or OD accounts, as long as they are valid and active.
  • Senior citizens enjoy a 50 basis points boost in rates, similar to fixed deposits.
  • SBI staff and pensioners receive an interest rate of 1% above the applicable rate.
  • The scheme is open to all resident individual customers, including minors.

Eligibility Criteria for Annuity Scheme

To opt for the SBI annuity scheme, individuals must be residents, including minors, and may choose to hold the scheme jointly or individually.

Non-Resident External (NRE) and Non-Resident Ordinary (NRO) clients are ineligible for this facility.

Also Read: SBI Sovereign Gold Bond Scheme

Interest Rates For Annuity Scheme 

  Deposit Period Rate of Interest for General Public Rate of Interest For Senior Citizens
  7 to 45 Days 3 % 3.50 %
  46 to 178 Days  4.50 % 4.40 %
  180 to 210 Days 5.25  % 5.75 %
 21 1 to 1 Years 5.75 % 6.25 %
  1 to 2 Years 6.75 % 7.25 %
  2 to 3 Years 6.75 % 7.25 %
  3 to 5 Years 6.25 % 6.75 %
  5 to 10 Years 6.25 % 7.25 %

Annuity Deposit Scheme Calculator

The annuity calculator is a handy tool, helping those who want to invest in the scheme. Individuals considering investment in the SBI Annuity Deposit Scheme can utilize the calculator for these reasons:

  • The SBI Annuity Scheme Calculator is a digital tool that computes the premiums necessary for acquiring an annuity.
  • It helps determine the required sum for a comfortable retirement.
  • SBI Annuity Deposit Scheme Calculators are speedy, user-friendly, and accurate, facilitating complex calculations in minutes, and aiding investors in shaping their financial future.

Using Annuity Deposit Scheme Calculator

The SBI Annuity Deposit Scheme Calculator is easily accessible on the company’s official website, allowing investors to use it conveniently without time constraints. The stepwise method for operating the calculator is as follows:

  • Visit the company website and select “Annuity Plus.”
  • Click on the “Premium Calculation” button.
  • Input personal details such as name, as date of birth, name, email, mobile number, gender, etc.
  • Specify whether you want an Immediate Annuity or Deferred Annuity plan for one or two persons.
  • Provide annuity details, like a lump sum or regular installments.
  • Click “Calculate Premium.”
  • The calculator displays the required premium amount.
  • Decide whether to proceed with the annuity purchase and enter details, including those of the annuitant (a person who purchased the scheme or a beneficiary).
  • Complete the purchase by making an online payment through credit, debit card, or net banking.

Important Considerations Before Purchasing the Plan

Before going for the SBI Annuity Deposit Plan, here are a few crucial points for investors to keep in mind:

  • The returns from this investment rely on the chosen annuity type, payout frequency, and the applicable interest rate at the time of purchase.
  • Benefits obtained from the SBI Annuity Deposit Scheme are classified as taxable income, subject to Income Tax laws.
  • Payouts might be available sooner than expected.
  • Opting for higher premiums will result in larger annuity payouts.
  • Investors have the flexibility to choose the frequency of annuity payouts, whether monthly, quarterly, annually, or semi-annually.

Conclusion

The SBI Annuity Deposit Scheme emerges as a flexible and tax-efficient investment avenue for individuals seeking steady income streams. Its simplicity lies in the investor’s ability to tailor benefits based on chosen annuity types, payout frequencies, and interest rates.

However, it’s crucial to note that the taxable nature of returns and the potential for early payouts should be considered. The scheme accommodates varying preferences with options for premium size and payout frequency, allowing investors to align the plan with their financial goals.

As a reliable financial tool, the SBI Annuity Deposit Scheme offers a straightforward approach to building a secure and predictable income, reinforcing its appeal to a diverse range of investors.

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