1. Home
  2. Blog

SBI Annuity Deposit Scheme 2023: Earn Monthly Income on One-Time Deposit; Check Eligibility, Tax, Interest Rates & More

Most people are aware of the post office's monthly income scheme which recently revised the interest rates for the scheme from January 2023. The investors are now getting 7.1 percent per annum payable monthly.

Shruti Kandwal

There is a sense of unease among people due to rumors of mass layoffs by multiple enterprises in big multinational and Indian companies.

For individuals who just have one source of income, the situation is much more concerning. People are thus looking for lucrative investment options in these uncertain times that will ensure they have a consistent and guaranteed monthly income.

The majority of people are aware of the Post Office Monthly Income Scheme, whose interest rates will change in January 2023 as a result of recent revisions. The current annual return to investors is 7.1%, payable every month.

But now, we'll talk about another monthly income plan offered by the State Bank of India, the largest public sector bank (SBI).

One such investment plan provided by SBI is the SBI Annuity Deposit Scheme, which delivers guaranteed returns and gives investors the security and peace of mind they need.

What is SBI Annuity Deposit Scheme?

Investors must deposit a one-time lump sum payment into the SBI Annuity Deposit Scheme. Investors receive their initial investment back in the form of a monthly annuity payment that includes some of the principal amount, interest on the reducing principal amount, compounded quarterly, and a reduction to the monthly value.

In Equated Monthly Instalments (EMIs), the SBI Annuity Investment Scheme enables investors to receive a fixed monthly amount in exchange for their initial deposit. Therefore, it operates on the concept of a loan. You receive a loan from the bank, which you return in EMIs along with the loan's interest. Similarly to this, when you invest money in an annuity deposit plan, the bank pays you back with interest on the amount you deposited.

SBI Annuity Deposit Scheme: Duration

SBI customers have access to the SBI Annuity Deposit scheme for a deposit duration of 3, 5, 7, or 10 years. The scheme is accessible at all SBI branches.

SBI Annuity Deposit Scheme: Eligibility

The SBI Annuity Deposit Scheme accepts investments from all residents, including minors, and offers the option of holding an individual or joint annuity.

SBI Annuity Deposit Scheme: Rules for Premature closure

In the event of the subscriber's death, the bank permits premature closure for SBI Annuity plan depositors. For deposits up to Rs 15 lakh, premature payment is also permitted, however, there is a penalty as with Term Deposits.

SBI Annuity Deposit Scheme: Facility for Loan

In some circumstances, the plan permits an overdraft or loan of up to 75% of the annuity value.

SBI Annuity Deposit Scheme: Tax

TDS is applicable to the interest earned on SBI Annuity Deposits scheme.

SBI Annuity Deposit Scheme: Maturity Amount

Investors in the SBI Annuity Deposit Scheme receive their deposited money back in monthly annuity installments that include some of the principal amount and interest on the principal that is reduced. The maturity amount is thus zero.

SBI Annuity Deposit scheme: Interest rates

The SBI Annuity Deposit Scheme's interest rates are the same as those for any term deposits the account holder chooses.

SBI interest rates on Annuity Deposit scheme

 

Tenure

 

Existing Rates for Public w.e.f. 22.10.2022

 

Revised Rates for Public w.e.f. 13.12.2022

 

Existing Rates for Senior Citizens w.e.f. 22.10.2022

 

Revised Rates for Senior Citizens w.e.f. 13.12.2022

 

7 days to 45 days

 

3.00

 

3.00

 

3.50

 

3.50

 

46 days to 179 days

 

4.50

 

4.50

 

5.00

 

5.00

 

180 days to 210 days

 

5.25

 

5.25

 

5.75

 

5.75

 

211 days to less than 1 year

 

5.50

 

5.75

 

6.00

 

6.25

 

1 year to less than 2 years

 

6.10

 

6.75

 

6.60

 

7.25

 

2 years to less than 3 years

 

6.25

 

6.75

 

6.75

 

7.25

 

3 years to less than 5 years

 

6.10

 

6.25

 

6.60

 

6.75

 

5 years and up

 

6.10

 

6.25

 

6.90

 

7.25@

SBI Annuity Deposit scheme: Payment date to customers by bank

If the date (29th, 30th, or 31st) is not present, the lender will make the repayment on the first day of the following month. Investors will begin receiving returns on their investments on the anniversary of the first month.

Take a Quiz on Green Revolution Take a quiz
Share your comments
FactCheck in Agriculture Project

Subscribe to our Newsletter. You choose the topics of your interest and we'll send you handpicked news and latest updates based on your choice.

Subscribe Newsletters