SBI annuity scheme to get regular monthly income: 10 things to know
SBI annuity scheme: Customers can get a fixed amount every month after depositing a one-time lumpsum payment This scheme of SBI can be invested in for a period of 3 years, 5 years, 7 years and 10 years
The State Bank of India (SBI) offers an annuity deposit scheme in which the customers can get a fixed amount every month after depositing a one-time lumpsum payment. As per SBI official website, a fixed amount is provided to the account holder in equated monthly instalments (EMIs). The EMIs comprises 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.
10 things to know about the SBI annuity scheme:
1) SBI annuity scheme enables the depositor to pay a one-time lump sum amount and to receive the same in Equated Monthly Instalments (EMIs).
2) All resident individual customer including minors can avail of this facility.
3) The minimum deposit amount for the SBI annuity deposit is based on a minimum monthly annuity of ₹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.
4) This scheme of SBI can be invested in for a period of 3 years, 5 years, 7 years and 10 years.
5) The rate of interest as applicable to the SBI annuity scheme is the same as SBI fixed deposits (FD). Let's say you make a fund deposit for five years, then you will get the interest-only according to the interest rate applicable to the fixed deposit of five years. At present, SBI gives a 5.40 % interest rate on deposits maturing in five to 10 years. For FDs maturing in three to less than five years, SBI offers an interest rate of 5.30%.
6) You can debit a saving, current, or OD account to open an annuity deposit account. The account selected for debiting should be a valid transactional account through the Internet Banking channel and should not be a dormant or locked account.
7) Like FDs, senior citizens will get 50 basis points (bps) above the applicable rate in the SBI annuity scheme.
8) The interest rate payable to SBI Staff and SBI pensioners will be 1% above the applicable rate.
9) The interest payable will be subject to TDS for the SBI annuity deposit scheme. The interest amount calculation is rounded off to the lowest rupee value, due to this there can be variation in the last annuity instalment.
10) SBI also offers a nomination facility with the scheme. Overdraft or loan up to 75 per cent 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.