Other than the usual recurring, fixed deposit or tax-saving fixed deposit schemes, the leading state-run lender offers a gamut of other lucrative schemes to choose from depending on one's financial goals. And of them one such scheme is SBI's Annuity fixed deposit plan.
What is Annuity fixed deposit plan by SBI?
This annuity FD account by SBI enables the account holder to deposit a one-time lump sum amount and receive it back as equated monthly installments (EMIs) that comprises a part of the principal amount and the interest on the reducing principal, compounded at quarterly rests and discounted to the monthly value.
Minimum deposit amount: The minimum amount of deposit under the scheme should not be less than Rs. 25,000 in any case. Note this minimum amount is based on minimum monthly annuity of Rs. 1000. There is no maximum deposit amount limit set for the scheme. Also, nomination facility is available.
In case of online annuity FD account, the maximum deposit amount for annuity FD scheme shall be the same as applicable for Fund Transfer within own account.
Tenure: The annuity scheme by SBI is available for 3 years, 5 years, 7 years or 10 years.
Eligibility: All resident individuals including minors can open the SBI annuity FD scheme. NRE and NRO account holders cannot avail the facility i.e. open the annuity FD scheme.
Rate of interest: SBI annuity FD account offers return at par with other SBI term deposits depending on the investors' chosen tenure. Notably, SBI revised FD rates with effect from July 30, 2018 even before the RBI hiked repo rate for the second straight time in early August by 25 basis points to 6.5%. One-basis point is one-hundredth of a percentage point.
|Term||Interest rate per annum for individuals wef July 30, 2018||For senior citizens|
|3 years to less than 5 years||6.8%||7.3%|
|5 years and up to 10 years||6.85%||7.35%|
Interest payment on annuity FD scheme will accrue or become due on the anniversary date of the month following the month of deposit. In case such a date does not exist for the following month, payment will be meted out on the 1st day of the next month.
Premature payment terms and conditions: Premature payment under such a scheme is allowed only in case of the death of the depositor.
Loan facility: Under special cases or circumstances only, the scheme provides overdraft or loan of a maximum of 75% of the annuity balance amount. And after such a loan is disbursed, future annuity payments will be deposited in the loan account of the concerned.