The SBI Annuity Deposit plan enables the depositor to pay a one-time lump sum amount and to receive the same in Equated Monthly Instalments (EMIs).
Are you looking for some extra money every month? Here's is something that you should consider investing in, through which you start getting monthly income after a certain time. Here we tell you about the annuity scheme of SBI.
The SBI Annuity Deposit plan enables the depositor to pay a one-time lump sum amount and to receive the same in Equated Monthly Instalments (EMIs), comprising a part of the principal amount as well as interest on the reducing principal amount, compounded at quarterly rests and discounted to the monthly value.
1. What is SBI's Annuity Deposit Scheme?
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This scheme of SBI can be invested in for a period of 36, 60, 84, or 120 months. In this, the rate of interest on the investment will be the same that applies to term deposits. For example, if you deposit for five years, then you get the interest according to the interest rate applicable for a fixed deposit (FD) of five years.
2. Who can open the SBI Annuity deposit Plan?
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Resident individuals, including minors, can open the SBI Annuity Deposit Plan. Mode of holding could be singly or jointly. However, any customer in the NRE or NGO categories cannot open the SBI Annuity Deposit Scheme.
3. What is the minimum amount for SBI scheme?
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The minimum deposit amount for SBI annuity deposit is based on a minimum monthly annuity of Rs 1000 for the relevant period. i.e for 3 yrs, the minimum deposit amount will be Rs. 36,000. However, there is no maximum limit. The interest starts on the amount deposited by the customer after a fixed time.
4. Payment of Annuity Deposit Scheme
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The payment of an annuity is on the anniversary date of the month following the month of deposit. In case, the date is non-existent (29th, 30th & 31st), it will be paid on the 1st day of the next month.
5. Other features of Annuity Deposit Scheme
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In this plan, an overdraft or loan up to 75 percent of the balance amount of annuity can be granted on special cases, according to SBI's website. After disbursal of loan, further annuity payment is deposited in loan account only
6. What will be the rate of interest for senior citizens?
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The rate applicable to all Senior Citizens of age 60 years and above will be 0.50% above the applicable rate.
7. Passbook, nomination, and transfer
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A Universal Passbook is issued, and the nomination is also available, transferability among SBI branches is also allowed.
8. Is it available at all SBI branches?
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Yes, the plan is available at all State Bank branches.
