SBI Annuity Deposit Scheme: Features, Eligibility Criteria and Benefits

When it comes to investments, we often look for options that provide us with a steady income and appropriate interest rates. In order to help every citizen of India with investing and a monthly steady income, India’s largest public sector bank State Bank of India (SBI) has introduced Annuity Deposit Scheme.  

SBI Annuity Deposit Scheme is an investment product that allows investors to park a lump sum deposit and earn monthly annuity instalments that include a portion of the principal amount as well as the interest. To put it simply, investors can get a monthly amount after depositing a one-time lump sum. The investment can be made for a period of 3 years, 5 years, 7 years or 10 years.  

If you’re planning to invest in the scheme, you first need to fulfil the eligibility criteria. Have a look! 

• All residents, including minors, can apply for the SBI Annuity Deposit Scheme through a single or joint method.  

• Investors who are NRE or NRO are not eligible for the scheme.  

The scheme comes with a variety of features:  

• It allows the customer to deposit a one-time lump sum amount and receive re-payment in monthly instalments that include interest as well.  

• The period of deposit into the scheme is 36/60/84 or 120 months.  

• In order to provide access to everyone, the scheme is available at all SBI branches. 

• The amount on the premise of the monthly annuity is Rs 1000 minimum for the applicable period.  

• The scheme allows premature payment for the deposit of up to Rs 15, 00,000/-. However, the penalty would be chargeable as applicable to team deposits.  

• In case of the death of the depositor, the bank allows premature payment without any limit.  

• The scheme has no maximum deposit amount, which means no upper limit.  

• The scheme provides the rate of interest as applicable to Term Deposits for Public and Senior citizens. 

• The senior citizens investing in the scheme are eligible for an additional rate of interest over the regular rate.  

• The payment of annuity will be provided on the anniversary date of the month following the month of deposit.  

• The scheme allows nomination in favour of individuals only.  

• The scheme allows loans or overdrafts up to 75% of the balance amount of the annuity in special cases. However, after the disbursal of OD/loan, further annuity payments will be deposited in the loan account only.  

• If you’re an SBI pensioner and the staff, the rate of interest will be 1 per cent above the applicable rate. 

To help you take a wise decision, we’re listing some of the benefits:  

1. Scheme’s Tenure: The SBI scheme has various tenure options. It allows you to choose as per your comfort and requirements. The tenure options are 1 year, 2 years, 3 years, 5 years, 7 years or 10 years.  

2. Monthly secure payments: Once you invest a lump sum, you can be worry-free because you’ll receive your monthly amount without any delays.

3. Deposit Amount: The scheme has a minimum deposit amount of Rs 25, 000 only, which makes it easily accessible to everyone.  

4. Interest: The scheme provides you with interest on every instalment. Also, the scheme is secure and extra beneficial for senior citizens as they get an extra rate of interest.  

5. Loan: As mentioned above, the scheme allows loans or overdrafts up to 75% of the balance amount of the annuity in special cases. 

If you want to invest in the SBI Annuity Deposit Scheme, visit your nearest SBI branch and get in touch with an executive.