SBI Annuity Deposit Scheme: SBI’s Annuity Deposit Scheme is one of the most important deposit schemes of the bank. Under this scheme, customers have to deposit all the money in one go. After a few months, the bank gives money to the customers in the form of installment every month.
new Delhi. SBI’s Annuity Deposit Scheme is one of the most important deposit schemes of the bank. Under this scheme, customers have to deposit all the money in one go. After a few months, the bank gives money to the customers in the form of installment every month. The bank calculates this installment as the interest rate of the principal. In this scheme, the interest to the customers is calculated on the compounding rate of three months.
The duration of investing in this Annuity Deposit Scheme varies. You can invest in this scheme for 36 months, 60 months, 84 months and 120 months. The special thing is that you can invest maximum in this scheme according to your need. It is necessary to invest at least Rs 1,000 in this scheme.
People below 18 years of age can also invest
On opening an account for this scheme, the customer gets a Universal Passbook. People below 18 years of age can also invest in this scheme. In the scheme, the account can be opened single account or both (Joint Account). In this, the interest rate on investment will be the same as for the term deposit of the chosen tenure.
Understand math like this
Suppose if you deposit funds for five years, then you will get interest at the same rate of interest applicable to fixed deposit for five years. Any citizen of India can take advantage of this scheme. If an investor wants a monthly income of Rs 10000 every month, then for that the investor will have to deposit Rs 5 lakh 7 thousand 965 and 93 paise. You will get a return of 7 percent interest rate on the deposited amount, due to which the investor will earn about 10 thousand rupees every month.
There is a rule to deposit a minimum of 1000 rupees every month in SBI’s annuity scheme, but no limit has been fixed for the maximum investment. In the annuity payment, income starts after a stipulated time by charging interest on the amount deposited by the customer. These schemes are great for the future, but it is not possible for the middle class to collect so much money together..
Special Features of Annuity Scheme
- You can invest in Annuity Scheme from all branches of SBI.
- SBI employees and ex-employees will get one percent more interest.
- Senior citizens will get 0.5 percent more interest.
- Term deposit interest rates will also be applicable on this scheme.
- Annuity will be paid on the due date from the month following the deposit.
- Annuity will be paid in savings account or current account after deducting TDS.
- There is a better plan to get good returns on lump sum amount.
- Overdraft/loan up to 75% of the balance amount of the annuity can be availed in special circumstances.
- Savings account gives better returns in Annuity Scheme.