If you are looking to use your savings for monthly income support, you can do so with the SBI Annuity Deposit Scheme. Depositors can make a one-time lump sum deposit, and get monthly income from this scheme.
The State Bank of India (SBI) Annuity Deposit Scheme is ideal for people looking to get a fixed monthly income. If you are looking to use your savings for monthly income support, you can do so with the SBI Annuity Deposit Scheme. Depositors can make a one-time lump sum deposit, and get monthly income from this scheme.
After making the deposit, depositors will get a fixed amount in equated monthly installments (EMIs). This will include the principal amount along with the interest received. Hence, you will get your deposits along with the interest earned in the form of monthly installment.
Depositors will start to receive the interest from the same date the account is opened of the next month. For example, if you open an Annuity Deposit Scheme account on the 25th of March, you will start receiving interest payments from the bank from the 25th of April.
Here are some things you should know about the scheme before you start investing in it;
Minimum and maximum deposit: While the no maximum deposit limit is good news for depositors, one needs to make a deposit of minimum Rs 25,000 in the scheme.
Interest received: The rate of interest offered by the SBI annuity deposit scheme is similar to its fixed deposits/term deposits. Hence, the interest rate depends on the tenure opted by the depositor. According to the latest fixed deposit rates, SBI offers 5.9 per cent interest on deposits maturing in 1 to 10 years. Hence, for a tenure of 36 months, 60 months, 84 months or 120 months, the annuity deposit scheme of SBI, will fetch a depositor an interest rate of 5.9 per cent. However, for 6 months to less than 1-year tenure, a rate of interest of 5.5 per cent is offered. Senior citizens for a tenure of 1 year and up to 10 years, will be offered an interest rate of 6.4 per cent.
Scheme tenure: The SBI annuity deposit scheme comes with various tenures and maturity options. Depositors can choose from options ranging from 3 years, 5 years, 7 years and 10 years.
Loan: Under this scheme, the depositor gets an overdraft/loan facility of up to 75 per cent of the balance amount in his/her annuity scheme. Note that, if you opt for a loan and once the loan is disbursed, further payment from the annuity scheme will be deposited in the loan account.
Full payment/Advance payment: Under the SBI annuity scheme, prepayment of the full amount will be done only in case of death of the depositor.