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SBI Annuity Scheme vs SBI FD vs SBI RD: A Comparison For Good Returns

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State Bank of India (SBI) provides an annuity deposit scheme in which, after depositing a lump sum amount, customers can receive a fixed amount every month. A fixed amount is offered to the account holder in equated monthly instalments (EMIs) and as per SBI the EMIs contain both a part of the principal amount and interest on the declining of the principal amount, compounded on a quarterly basis and adjusted on a monthly basis. Thus, along with interest, the deposits made by the customers are returned to them in the form of a monthly installment.

Minimum deposit amount required for SBI Annuity Scheme

Minimum deposit amount required for SBI Annuity Scheme

For the SBI annuity deposit, the minimum deposit amount with no upper limit is based on a minimum monthly annuity of Rs 1,000 for the applicable duration. And it is, the minimum deposit amount will be Rs. 36,000 for three years. For a fixed time, the interest starts on the balance deposited by the customer.

Required deposit amount and tenure of different SBI FD Schemes
 

Required deposit amount and tenure of different SBI FD Schemes

Under SBI fixed deposit schemes, the following plans are available for the customers:

SBI Term Deposit: Investors can easily select a maturity period that ranges from 7 days to 10 years. Rs. 1,000 is the minimum required contribution. Loans against FD and options for early withdrawal are open.

SBI Tax Saving FD: Here, the deposit tenure is set for 5 years. Rs. 1.5 Lakh is the highest investment amount. Loans against FD and premature withdrawal facilities, however, are not open.

SBI Fixed Deposit Reinvestment Plan: The maturity duration is between 6 months and 10 years for this scheme. With a deposit of only Rs. 1,000, investors can invest in this scheme.

SBI Multi Option Deposit: It is a mix of an FD and a savings account. Investors can partially withdraw the amount, while interest continues to be received on the remaining balance. With a minimum contribution threshold of Rs. 10,000, the tenure varies from 1 and 5 years under this scheme.

SBI Annuity Deposit: 36, 60, 84 and 120 months are tenure options. Rs. 25,000 is the minimum contribution permitted under this scheme. Premature withdrawal is possible only after the account holder's demise.

SBI Annuity Deposit vs SBI RD: Know the key difference

SBI Annuity Deposit vs SBI RD: Know the key difference

The customer performs installment payments and receives the maturity amount in the Recurring Deposit Account at the maturity. A one-time deposit and that balance plus interest on the declining principal are returned to the customer in installments under the SBI annuity deposit over the tenor preferred by the customer.

SBI Annuity Deposit Scheme vs SBI FD: Know the key difference

SBI Annuity Deposit Scheme vs SBI FD: Know the key difference

In the case of STDR, the customer makes a one-time payment and receives the maturity balance at the maturity date, which includes principal and interest, and principal only in the case of TDR, as interest is paid annually on the SBI FD account. The SBI annuity deposit allows a one-time deposit and the balance is returned in EMIs to the customer over the tenor chosen by him/her, along with interest.

Interest rates comparison

Interest rates comparison

At present, SBI offers an interest rate of 2.9 per cent to 5.40 per cent on deposits maturing in 7 days to 10 years. The interest rates applied to the SBI annuity scheme is similar to that of the SBI FD which are in effect from January 8, 2021.

SBI RD Rates

Tenure ROI for non-senior citizens ROI for senior citizens
1 year to 1 year 364 days 5.00% 5.50%
2 years to less than 3 years 5.10% 5.60%
3 years to less than 5 years 5.30% 5.80%
5 years and up to 10 years 5.40% 6.20%
SBI FD Rates For Amount Below Rs 2 Cr

SBI FD Rates For Amount Below Rs 2 Cr

Tenure ROI for non-senior citizens ROI for senior citizens
7 days to 45 days 2.90% 3.40%
46 days to 179 days 3.90% 4.40%
180 days to 210 days 4.40% 4.90%
211 days to less than 1 year 4.40% 4.90%
1 year to less than 2 year 5% 5.50%
2 years to less than 3 years 5.10% 5.60%
3 years to less than 5 years 5.30% 5.80%
5 years and up to 10 years 5.40% 6.20%
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