SBI Annuity Deposit Scheme requires customers to deposit a one-time lump sum amount to the bank.
The State Bank of India (SBI) is a multinational public sector bank that offers numerous schemes and financial support to customers. It aims to provide customers with full financial security and capital growth. So SBI provides an Annuity Deposit Scheme for its customers.
Read More: H-1B Visa 2025 registration dates announced, check what’s new
In this case, income is earned in monthly instalments (EMI). By depositing money once in SBI’s Annuity Deposit Scheme, one can avail of an EMI. This scheme is also called a monthly annuity instalment. The tenure of the deposit is 3, 5, 7, or 10 years, and the interest rate is also similar to that of fixed deposits of the same period. This scheme is a good way to earn extra income. Let’s take a look at the benefits and money-making tips of this scheme.
Read More: Bank Holidays in March 2024: Banks to be closed on these days. Check the full list here
SBI Annuity Deposit Scheme
The SBI Annuity Deposit Scheme requires customers to deposit a one-time lump sum amount to the bank. This money will be repaid by the SBI in Equated Monthly Installments over time. These EMI amounts comprise a portion of the principal amount and interest. In this scheme interest is compounded quarterly, with returns discounted every month.
Read More: LPG Price Hike: Commercial Cylinder Rate Increased By Rs 25. Check Latest Prices
Features of the SBI Annuity Deposit Scheme:
1. One can invest in this scheme at any branch of SBI in India.
2. The minimum investment amount in this scheme is Rs 1,000.
3. There is no upper limit on the maximum deposit amount for this scheme.
4. One can nominate individuals to receive the returns from the SBI Annuity Deposits scheme in your absence.
5. Investors need to deposit a lump sum, after which they will earn repayments every month. The returns comprise the principal amount and the interest.
6. In the case of non-existent dates, one will receive the returns on the 1st of the following month.
7. Investors receive a universal passbook for this scheme and their term deposit investments.
8. One can choose a period of deposit between 36, 60, 84, or 120 months.
9. The bank is bound to grant an overdraft or loan facility for 75% of the annuity deposit balance amount in special cases. 10. The bank allows premature payments up to Rs. 15,00,000 for term deposits.
For early payments, SBI will impose a certain penalty cost.
