SBI Annuity Deposit Scheme
5paisa Research Team
Last Updated: 27 Jun, 2023 04:21 PM IST
Want to start your Investment Journey?
Content
- What is SBI Annuity Deposit Scheme?
- SBI Annuity Deposit Scheme Interest Rates (2023)
- Features of the SBI Annuity Deposit Scheme
- Components of the SBI Annuity Scheme
- Eligibility for the SBI Annuity Deposit Scheme
- Benefits of the SBI Annuity Scheme
- Comparison of FD rates
The SBI Annuity Deposit Scheme uses a person's savings to provide a consistent monthly income. Investors can deposit all of their savings at once to receive a predetermined amount of monthly income. The SBI Annuity Deposit Scheme, its features, and commonly asked questions concerning the scheme are all covered in-depth in this page.
In this article, we'll look at the main benefits, features, and eligibility requirements of the SBI Annuity Deposit Scheme and compare it to other ways to invest.
What is SBI Annuity Deposit Scheme?
The SBI Annuity Deposit Scheme is a type of investment offered by the State Bank of India where you can deposit a lump sum and receive monthly payments that include both the initial deposit and any interest that has accrued on it. This scheme is also known as monthly annuity instalments and is available for tenures of three, five, seven, or ten years. The interest rates for this annuity deposit scheme are similar to those for term deposits with the same length of time, and senior citizens get an extra interest rate that applies to term deposits.
SBI Annuity Deposit Scheme Interest Rates (2023)
SBI Annuity Deposit Scheme offers competitive interest rates to its customers. Depending on how long a deposit is held, the interest rates for regular citizens and senior citizens may be different. The following table provides the interest rates for the SBI Annuity Deposit Scheme as of 2023:
Period |
Interest Rate |
|
For General Citizens |
For Senior Citizens |
|
7 - 45 days |
2.90% |
3.40% |
46 - 178 days |
3.90% |
4.40% |
179 - 364 days |
4.40% |
4.90% |
1 - 2 years |
5.00% |
5.50% |
2 - 3 years |
5.10% |
5.60% |
3 - 5 years |
5.30% |
5.80% |
5 - 10 years |
5.40% |
6.20% |
Features of the SBI Annuity Deposit Scheme
The SBI Annuity Scheme is a safe and easy way to invest for people who want a steady income stream. Here are the key features of the SBI Annuity Deposit Scheme:
1. Minimum Deposit Amount
The annuity deposit scheme requires a minimum deposit of Rs. 25,000, making it accessible to a wide range of investors.
2. Accessibility
The annuity deposit scheme is available at all SBI branches across India, as well as at specialised credit-intensive branches, making it easy to invest in regardless of location.
3. Monthly Annuity Amount
The investor gets a payment every month that includes both the principal and the interest. The minimum monthly payment is Rs. 1,000, and the tenure can range from three to ten years.
4. Interest Rates
The interest rates for this scheme are the same as those for term deposits of the same tenure. Additionally, senior citizens receive an additional interest rate that is applicable to term deposits.
5. Annuity Payment
After the tax at source (TDS) net is taken out, the annuity payment is put into the investor's savings or checking account.
6. Transferability and Nomination
The scheme can be moved between all SBI branches, and investors can name a beneficiary by filling out a form and giving a universal passbook.
7. Annuity Payment Date
The annuity payment is made on the anniversary date of the deposit month. This gives investors a steady and predictable way to earn money.
Components of the SBI Annuity Scheme
With its modular structure, the SBI Annuity Deposit Plan gives investors a lot of room for manoeuvre. The scheme relies on the following components, among others:
1. Premature Payment
In the sad case that the depositor dies, the deposit can be taken out early with the permission of the legal heirs or joint account holders. The bank is obligated to honour this rule.
2. Facility for Loan
In some cases, the SBI Annuity Scheme allows an overdraft or loan of up to 75% of the annuity balance. After this kind of loan is paid out, the borrower's loan account will get regular payments from the annuity.
3. Taxes on Interest Earned
Interest earned on annuity deposits is subject to TDS. The amount of interest calculated is rounded off to the nearest rupee value, so the last annuity instalment may differ.
4. Interest Rates
Depending on the length of time the customer chooses, the SBI Annuity FD account gives the same return as other SBI term deposits. One-tenth of a percentage point is equal to one basis point.
5. Maturity Amount
An annuity deposit scheme has a zero maturity amount since both the principal and the interest on decreasing the principal are paid in instalments over a period of time.
6. Eligibility
The SBI annuity scheme is open to all Indian residents, including minors. However, customers who are NRE or NRO are not eligible for the annuity FD plan.
Eligibility for the SBI Annuity Deposit Scheme
For people to be able to use the SBI Annuity Deposit Scheme, they must meet certain requirements. This scheme is available to both individuals and minors, and the account can be held singly or jointly. However, it's important to note that non-resident Indians (NRI) or non-resident ordinary (NRO) account holders are not eligible for this scheme. So, anyone who lives in India and meets these requirements can use this programme to get a monthly annuity payment on their deposit.
Benefits of the SBI Annuity Scheme
The SBI annuity scheme is good for investors who want a safe and flexible way to put their money to work. Among the many benefits of participating in this plan are:
● Flexible Tenure
The SBI annuity scheme gives depositors a range of options for the length of their investment, from 7 days to 10 years.
● Safe Lock-in
The mode of payment in the SBI annuity scheme is made in advance only when the depositor passes away. This makes sure that the lock-in is safe and that the depositor, or their nominee, gets a steady stream of income.
● No Upper Limit
The SBI annuity deposit scheme does not have any upper limit on the amount of deposition, which makes it an attractive investment option for high-net-worth individuals.
● Loan Facility
The scheme lets depositors take out a loan or overdraft of up to 75% of the amount they have in their account. This can be useful in times of emergency or financial need.
Comparison of FD rates
When choosing a fixed deposit (FD) plan, it is important to look at the interest rates that different banks offer. Here's a comparison of the FD rates offered by some of the leading banks in India:
Name |
Tenure |
Highest Interest Rates |
AXIS Bank |
6 months - 5 years |
5.75% - 7.00% |
SBI Bank |
3 Months - 10 Years |
4.50% - 6.50% |
Equitas Bank |
7 Days - 10 years |
3.50% - 6.00% |
Bajaj Finance |
1 year - 5 years |
6.55% - 7.40% |
HDFC Bank |
3 months - 10 years |
4.50% - 7.00% |
ICICI Bank |
3 months - 10 years |
4.75% - 6.90% |
Canara Bank |
3 months - 10 years |
4.50% - 6.50% |
Bank of Baroda |
3 months to 10 years |
4.50% - 6.25% |
Punjab National Bank |
3 months - 10 years |
3.25% - 5.65% |
IDBI Bank |
3 months - 20 years |
2.70% - 4.80% |
More About Savings Schemes
- Section 194IC
- PF Form 11
- Form 13 For PF Transfer
- EPF Form 20
- Corporate Fixed Deposit
- Fixed Deposit (FD) vs Recurring Deposit (RD)
- Income Tax on Recurring Deposit RD
- How to Withdraw Money from Unclaimed EPF Account
- How to Get Your Name Changed in the EPF
- Steps to Upload KYC for EPF UAN
- EPF Payment
- Difference between GPF, EPF, and PPF
- Difference Between APR vs APY
- Atal Pension Yojana Tax Benefits
- How To Open Atal Pension Yojana (APY) Account Online
- How to Close Atal Pension Yojana Account
- How to Change Details in Atal Pension Yojana Scheme
- NPS v/s SIP
- NPS Lite Aggregators List
- NPS Customer Care Number
- National Pension Scheme for NRI
- National Pension Scheme (NPS) Withdrawal Rules
- Best Child Investment Plans In India
- Post Office PPF Account
- PPF Account Withdrawal Rules
- PPF Deposit Limit
- PPF Account Age Limit
- PPF Account for Minors
- PPF Online Payment
- ELSS Vs PPF
- Loan Against PPF
- Post Office PPF Interest Rate
- PPF Interest Rates 2023 - 24
- What is Pradhan Mantri Jan Arogya Yojana
- Balika Samridhi Yojana
- What is member ID in PF?
- How To Merge Two UAN Numbers Online
- How to Merge Two PF Accounts?
- How to Raise Grievance in EPFO
- How to Check PF Balance in Mobile: A Comprehensive Guide
- How to Download Your EPF Passbook: A Comprehensive Guide
- TDS on PF Withdrawals: A Comprehensive Guide
- How to Transfer Your PF from One Company to Another?
- EPF vs PPF
- PF Balance Check with UAN Number Without Password
- PF Balance Check without UAN number
- Introduction to Savings Schemes
- Difference Between VPF And PPF
- EPF Form 10D
- NPS vs PPF
- Superannuation Meaning: What is Superannuation
- What is Fixed Deposit?
- Pradhan Mantri Awas Yojana
- Atal Pension Yojna vs NPS
- NPS (National Pension Scheme Charges)
- EPF vs EPS
- EPF Form 2
- What are Tier 1 and Tier 2 in NPS?
- NPS Tier 2
- NPS Tier 1
- Senior Citizen Saving Scheme (SCSS)
- General Provident Fund (GPF)
- Pension Fund Regulatory & Development (PFRDA)
- SBI Annuity Deposit Scheme
- GPF Interest Rates 2023
- Unit Link Insurance Plan (ULIP)
- List of Bank Mergers
- PRAN Card
- Foreign Currency Non Resident Account (FCNR)
- What is EDLI?
- What Is NPS Interest Rates?
- What is Form 15g
- Saksham Yuva Yojana
- Why Invest in PPF?
- How To Check PPF Account Balance
- NSC Interest Rate
- NSC – National Savings Certificate
- Swavalamban Pension Yojana
- KVP Interest Rate
- PF Withdrawal Rules 2022
- NPS Returns
- National Pension Scheme (NPS)
- Jeevan Pramaan Patra - Life Certificate for Pensioners
- Kisan Vikas Patra (KVP)
- PF Form 19
- PF Withdrawal Form
- EPS - Employee Pension Scheme
- PPF Withdrawal
- Atal Pension Yojana (APY)
- EPF Form 5
- EPF Interest Rate
- Check Your PF Balance Online
- Employee Provident Fund (EPF)
- UAN Registration & Activation Online
- UAN Member Portal
- Universal Account Number
- National Savings Scheme
- Post Office Tax Saving Schemes
- Post Office Monthly Income Scheme
- Post Office Savings Schemes
- EPF Claim Status
- EPF Form 31
- EPF Form 10C Read More
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.
Frequently Asked Questions
An annuity deposit differs from an RD account in that customers make a one-time deposit in annuity deposits, whereas they need to make payments in instalments in RD accounts. In an annuity deposit, the amount and interest on a decreasing principal are given back to the customer in instalments over a set period of time. In an RD account, on the maturity date, the customer is given the maturity amount.
The minimum deposit that can be made in the SBI annuity deposit scheme is Rs. 25,000. However, there is no maximum cap placed on the amount of money that may be contributed to the scheme.
Yes, it is possible to debit money from other accounts like OD, current, or savings accounts to open an annuity deposit account.
In general, the SBI annuity deposit scheme does not allow early payments, except in the case of the depositor's death.
Yes, the SBI annuity deposit scheme is different from an FD scheme in terms of the deposit method and payout structure. An initial deposit is needed to open an FD account, and the principal and interest are paid out at the end of the term. On the other hand, the annuity deposit scheme requires a one-time deposit, and the amount, along with interest, is paid out to the customer over the predetermined tenure.