When it comes to seeking gains on your wealth, many people opt for schemes that offer a fixed monthly income that can ensure household needs are always met, be it the worst of times like we have seen with the Covid-19 pandemic. One such scheme is offered by India’s largest public bank the State Bank of India (SBI) for its customers. Read on to know more about this special deposit scheme and also calculation of how you can earn Rs 10,000 monthly from the scheme.
This special deposit scheme from SBI gives you the opportunity to start receiving a fixed monthly income after a certain amount of time. This scheme is called the SBI Annuity Deposit Scheme.
Under this scheme, which is transferable between branches of SBI, customers need to make a one-time lump sum deposit and will receive the same in Equated Monthly Instalments (EMIs). This amount will comprise of the principal amount in part and the interest on the reducing principal amount, which is compounded at quarterly rates and discounted to monthly value.
Earn monthly income with SBI Annuity Deposit Scheme
The features of the Annuity Deposit Scheme as per SBI’s website are:
- The scheme enables customers to make one-time lump sum deposits and receive re-payment of the amount in monthly annuity instalment comprising part of the principal amount plus interest.
- The period of deposit will be 36, 60, 84 or 120 months
- The SBI Annuity Deposit Scheme is available at all branches
- There is no upper limit for maximum deposit amount under this scheme
- Deposit amount is based on minimum monthly annuity of Rs 1000 for the relevant period
- Premature payment is allowed for the deposits up to Rs 15,00,000. Penalty will be chargeable, as applicable to Term Deposits.
- In case of death of depositor, premature payment is allowed without any limit.
- Rate of interest is as applicable to Term Deposits for Public and Senior Citizens
- Payment of annuity on the anniversary date of the month following the month of deposit. If that date is non-existent (29th, 30th & 31st), it will be paid on the 1st day of the next month.
- Nomination is available in favour of individual only
- Overdraft/loan up to 75% of the balance amount of annuity may be granted on special cases.
- After disbursal of OD/loan, further annuity payment will be deposited in loan account only.
- Universal Passbook is issued in lieu of Term Deposit
- Transferability allowed among branches
How to earn a monthly fixed income of Rs 10,000 with this scheme?
To receive a monthly income of Rs 10,000 from this scheme, a customer will have to make a one-time deposit of 5,07,964. The return from the scheme based on a 7 percent rate of interest would bring back an amount of Rs 10,000 every month.
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