SBI Annuity Deposit Scheme: Earn guaranteed monthly income with single lump-sum investment
Premature payment is permitted for deposits up to Rs 15,00,000 under the SBI Annuity Deposit Scheme, but there is a penalty as with Term Deposits
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State Bank of India (SBI), the leading bank in India, provides a wide range of investment strategies. The SBI Annuity Deposit Scheme is one of the investment plans made publicly available by SBI. It guarantees fixed returns, offering customers the security and peace of mind they seek. Under the SBI Annuity Deposit Scheme, the lender gives the depositor the option to make a single lump sum payment and receive the same amount in Equated Monthly Instalments (EMIs).
The deposit amount is based on a minimum monthly annuity of Rs 1000 for the applicable term. There is no upper limit on the amount of the maximum deposit. The deposit period can last 36, 60, 84, or 120 months. Premature payment is permitted for deposits up to Rs 15,00,000 under the SBI Annuity Deposit Scheme, but there is a penalty as with term deposits. Premature payment is permitted without restriction in the unfortunate scenario of the depositor’s death.
Other details of the scheme:
The interest rate is similar to fixed deposits for the general public and senior citizens. Annuity payments are made on the anniversary of the month that comes after the month of the deposit. It will be paid on the first day of the following month if the dates are not available (e.g. 29th, 30th and 31st). In exceptional circumstances, an overdraft or loan of up to 75 percent of the balance amount of annuity can be provided.
Any additional annuity payments will only be paid in the loan account once the OD/loan has been disbursed. Only individuals are eligible to act as a nominee. Term Deposit will be substituted by Universal Passbook. The plan may be transferred between branches.
Among insurance-cumulative-investment plans, an annuity plan is regarded as the most advantageous choice for saving after retirement. Since it delivers consistent payments that can be made monthly, quarterly, or annually based on the investor’s requirements, this retirement plan is one of the most popular ones. The schemes effectively manage your investment and provide a steady income to ensure a respectable post-retirement living.
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