State Bank of India (SBI) is offering Annuity Deposit Scheme wherein the depositor can get a monthly amount after they deposit a one-time lump sum.
India's largest public sector bank State Bank of India (SBI) is offering Annuity Deposit Scheme wherein the depositor can get a monthly amount after they deposit a one-time lump sum. Here is all you need to know about the annuity scheme of SBI.
1. About SBI's Annuity Deposit Scheme
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This scheme of SBI can be invested in for a period of 36, 60, 84 or 120 months. In this, the rate of interest on the investment will be the same that is applicable to term deposits. For example, if you make a deposit for five years, then you get the interest according to the interest rate applicable for a fixed deposit (FD) of five years.
2. Who can open SBI Annuity Deposit Plan?
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Resident individuals, including minors, can open the SBI Annuity Deposit Scheme. The mode of holding can be single or joint.
3. Minimum deposit for SBI scheme
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The amount for the SBI annuity deposit scheme is based on a minimum monthly annuity of Rs 1,000/- for the relevant period. There is no maximum limit for deposit. In annuity payment, the interest starts on the amount deposited by the customer after a fixed time.
4. Payment of annuity
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The payment of annuity is on the anniversary date of the month following the month of deposit. In case, the date is non-existent (29th, 30th & 31st), it will be paid on the 1st day of the next month.
5. Other facilities
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SBI also offers a nomination facility with the scheme. Overdraft or loan up to 75 per cent of the balance amount of annuity can be granted on special cases, according to SBI's website. After disbursal of loan, further annuity payment is deposited in loan account only.
