HIGHLIGHTS
- The SBI Annuity Deposit Scheme ensures that you can get assured monthly income from the corpus generated.
- Ideal for pensioners or those who need a regular fixed monthly return without the suspense of changes in the market.
- It offers a regular monthly return with no risk of fluctuations in the market.
Do you want a regular monthly income? You may need the SBI Annuity Deposit Scheme. This scheme is an investment product through which account holders can deposit a sum and receive a predetermined amount every month. This plan is apt for persons looking to earn consistent returns without exposing themselves to market fluctuations.
Table of Contents
SBI Annuity Deposit Scheme Interest Rates (2024)
| Duration | Annual Interest rate for Ordinary Citizens | Annual Interest rate Senior Citizens |
| 7 days to 45 days | 2.9% | 3.4% |
| 46 days to 178 days | 3.9% | 4.4% |
| 1 year to 2 year | 5% | 5.5% |
| 2 year to 3 year | 5.1% | 5.6% |
| 3 year to 5 year | 5.3% | 5.8% |
| 5 year to 10 year | 5.4% | 6.2% |
What is the SBI Annuity Deposit Scheme?
Under the SBI Annuity Deposit Scheme, you make a deposit one time, and then SBI gives you a fixed monthly payment as per this deposit. The fixed monthly payment comprises interest and an amount of your initial deposit, thus bestowing a predictable month-after-month “paycheck” to you.
How can you avail yourself of the SBI Annuity Deposit Scheme?
- Deposit Amount: Minimum initial deposit ₹25,000.
- Tenor: You may choose 3, 5, or 7 years. Tenor of 10 years is also available.
- Rate of Interest: The rate that SBI has prescribed as the rate of interest for the tenure under the fixed deposit scheme.
- Monthly Payable Amount: Equal monthly instalment payable to you including interest and part of your principal. The maturity proceeds are totally liquidated at the end of the tenure.
Comparison of Top 5 Scheduled Banks based on FD Rates
| Bank | 7 days to 45 days | 46 days to 179 days | 3 to 5 years | 5 to 10 years | Senior Citizen Rates |
| SBI | 2.9% | 3.9% | 5.8% | 6.2% | +0.5% over standard rate |
| HDFC | 3% | 4% | 6% | 6.25% | +0.5% over standard rate |
| ICICI | 3% | 4% | 6% | 6.3% | +0.5% over standard rate |
| Axis | 3.15% | 4.05% | 6.1% | 6.25% | +0.5% over standard rate |
| Punjab National Bank | 3.25% | 4.05% | 6% | 6.25% | +0.5% over standard rate |
Who Can Apply and How?
- Eligibility: All Indian citizens, minors with guardians.
- Minimum Deposit: No minimum balance, but you should deposit money enough to generate a worthwhile monthly income.
- How to Apply: You can apply through any SBI branch or through an online platform.
This plan is ideal for those who want a guaranteed monthly income without vulnerability to market fluctuations. It is best for:
- Retirees are looking for decent, fixed monthly income.
- Conservative investors prefer less risk with returns.
- Parents who require predictable earnings for future expenses.
However, if they can afford that little bit of extra return with the tolerance of market-related fluctuations, they may look at other options such as mutual funds.
FAQs
Can I withdraw my money before?
Not permitted partly; however, exceptions are made for the account holder in case of his or her death.
How does it reach my monthly payment?
The deposit sum, the tenure, and the interest rate are applied.
Check Your Monthly Income through the SBI Annuity Calculator
Do I have to pay tax on the interest?
Yes, the interest is taxable, and SBI can deduct TDS if your income crosses certain thresholds.
Are non-residents eligible to invest?
Currently, only Indian residents are eligible to open an SBI Annuity Deposit account.
The SBI Annuity Deposit Scheme is the safest way to provide a steady monthly income, especially for pensioners and conservative savers. No market risks.
