When you have a disposable sum in your hands, invest in a monthly or quarterly interest payment scheme so that you can earn a steady stream of income. SBI Annuity Deposit Plan is a simple scheme where investing a lump sum amount now, promises fixed recurring monthly revenue in the future.
SBI Annuity Deposit Plan
The SBI Annuity Deposit Plan requires the depositor to pay a one-time lump sum amount and to receive the same in Equated Monthly Instalments (EMIs). Includes a share of the principal sum and interest on the reduction of the principal amount, compounded every quarter and discounted every month.
Who can open SBI Annuity Deposit Plan?
Any individuals, including minors, can open the SBI Annuity Deposit Plan. Mode of holding could be singly or jointly. While any customer in the NRE or NGO categories cannot open the SBI Annuity Deposit Scheme
Features of SBI Annuity Deposit Plan
1. SBI Annuity Deposit Plan comes with a different period of deposit.
2. Individuals can choose from 36/60/84 or 120 months.
3. SBI Annuity Deposit Plan is available at all branches all over India.
4. The minimum monthly annuity Rs 1000/- for the relevant period.
5. The minimum amount of deposit should not be below Rs 25,000/-
6. There is no limit on the maximum deposit
7. Interest rate is applicable as per term deposits rate
8. The interest rate to all Senior Citizens of age 60 years and above will be 0.50% above the applicable rate.
9. Individuals can also opt for Overdraft or loan up to 75% of the balance amount of the annuity.
10.SBI Annuity deposit scheme is accessible for 3, 5, 7, and 10 years. SBI also offers a nomination facility with the scheme.
How much to invest for monthly income?
SBI pays an interest rate of 5.40% on deposits matured in five to ten years. For FDs aged three or less than five years, SBI offers an interest rate of 5.30%.
Here is an example that will explain how it works:
|Investment Phase||Payout Phase|
|Investment Phase||Tenure||Rate of Interest||Total Corpus||Lump-Sum Payment||Tenure||Monthly Payout|
|Rs 1,00,000.00||24 months||5.35%||110093||Nil||24 months||4897|
|Rs 2,00,000.00||24 months||5.35%||220186||Nil||24 months||9793|
Disclaimer: The figures and data used in the above calculation are for reference purposes only.
Individuals can opt for this option from a savings account, current account, or OD account to open their Annuity bank account. The account chosen for debiting should be valid transactional a/c via the Internet Banking channel and should not be stopped, dormant, or locked account.
Payment will begin on the anniversary date of the month. If that day is non-existent (29th, 30th, and 31st), it will be paid on the first day of the next month.
Premature payment is allowed up to a maximum volume of Rs.15 lakes. However, an early withdrawal is provided only in the event of the investor's death.
Should you opt?
Generally, members of the working class do not have lump-sum amounts. In such cases, most people are protecting their future by investing in a recurring deposit (RD). However, if you have enough money and you are looking for a steady income without any risk, this is the scheme for you.