SBI Scheme: The country’s largest bank SBI offers a special scheme to its customers. In this, on depositing a lump sum amount, there is guaranteed income with interest every month. This scheme is SBI Annuity Deposit Scheme. According to SBI, on depositing a lump sum amount, the depositors earn interest every month along with the principal in equal monthly installments (EMI). The interest is calculated on the basis of compounding every quarter on the amount left in the account.
Interest is received like SBI FDs
Talking about the interest received on the scheme, the customers of this scheme also get the same interest as SBI’s term deposit i.e. FD (Fixed Deposit). According to SBI’s website, you can deposit in SBI Annuity Deposit Scheme for 36, 60, 84 or 120 months. This scheme is available in all SBI branches. You can deposit as much as you want in it. However, the minimum deposit has to be at least Rs 1000 as per monthly annuity.
When will pre-closure happen first?
In this scheme of SBI, overdraft/loan of up to 75 percent of the balance amount of the annuity can be availed if needed. However, a pre-mature penalty has to be paid in this. The rate of penalty is taken on the rate applicable on bank FD. This account can be single or joint holding. In SBI Annuity Deposit Scheme, the scheme can be closed prematurely in case of the death of the depositor. Apart from this, premature payment can also be made on deposits up to Rs 15 lakh.
Take care of your tax liability
In SBI Annuity Deposit Scheme, annuity payment will be made from the due date of the next month of deposit. If that date (29, 30 and 31) is not there in any month, then annuity will be received on the first date of the next month.
The annuity will be paid after deducting TDS (Tax Deduction at Source) and credited to the linked savings account or current account. The account of the scheme can be transferred from one branch of the bank to another. Individual nomination facility is available in the scheme. Universal passbook will also be issued to the customer.
