Are you planning on investing in something? Then this article is for you. There is no debate that the State Bank of India is the country’s biggest bank. Now this bank has introduced a superhit scheme. Today we are going to discuss the SBI annuity deposit scheme. The specialty of this scheme is that it has to be a lump sum deposit; after that, you will have guaranteed income with interest every month.
SBI annuity deposit scheme
In this scheme, interest is given to the customer every month along with the principal amount. This interest is calculated by compounding every quarter on the amount left in the account. According to SBI’s website, the interest on the deposit is the same as that on the bank’s term deposit, i.e., FD.
According to SBI’s website, in this scheme, the customer has to make a one-time lump sum deposit, and after that, the principal amount and interest are received as monthly installments. In this scheme, lump sum deposits can be made for 36, 60, 84, or 120 months. There is no limit to the maximum deposit. At the same time, the minimum annuity is Rs 1000 per month. This scheme is available in all branches of SBI.
When does the monthly payment start?
In this scheme of SBI, the annuity will be paid from the due date of the next month of deposit. If that date is not (29, 30, and 31) in a month, then annuity will be given on the 1st of the following month. The annuity will be paid after deducting TDS and credited to the linked savings account or current account. In the SBI Annuity Deposit Scheme, regular customers and senior citizens get the interest received on term deposits. Nomination facility is available in this. A universal passbook will also be issued to the customer. There is also a transfer facility from one branch to another.
You will get loan facilities
In the SBI Annuity Deposit Scheme, an overdraft or loan of up to 75% of the balance amount of the annuity can be found on need. After taking the loan/overdraft, the annuity payment will be credited to the loan account. At the same time, the scheme can be closed ahead of time in case of the death of the depositor. Apart from this, time prepayment can also be made for deposits up to Rs 15 lakh. At the same time, the pre-mature penalty will also have to be paid at the same rate as the FD. That is, according to the term deposit, there is a premature penalty in this scheme. Indian residents can open this account. This facility is also available for minors. This account can be opened in both single and joint mode.