India’s largest public sector bank SBI or State Bank of India is offering a great investment opportunity by providing an annual deposit scheme. Which allows users to deposit a lump sum amount and get a monthly pension against it as Equated Monthly Instalments (EMIs). EMI will be “comprising a part of the principal amount as well as interest on the reducing principal amount, compounded at quarterly rests and discounted to the monthly value”.
SBI Annual Deposit Scheme
If anyone decides to invest in SBI Annual Deposit Scheme, then he or she can receive monthly installments, which will comprise the part of principal amount and interest applicable to it.
Features of the SBI Annuity Deposit Scheme
“The deposits under the scheme can be made for 36/60/84 or 120 months. The minimum monthly annuity under the scheme is Rs 1000 and premature payment is allowed for deposits up to Rs 15,00,000. There is no upper cap on the deposit amount. The investors also get an option to have an overdraft/loan up to 75% of the balance amount of the annuity as granted in special cases”.
Interest Rates Applicable On SBI Annual Deposit Scheme
The interest rates applicable are the same as the term deposits for both the general public and senior citizens. Moreover, SBI has also increased their interest rates on fixed deposit plans across all tenures to a maximum of 6.1 percent for the general public and 6.9 percent for senior citizens. But, remember that the interest varies on the conditions of different tenure plans. “ If you deposit for 36 months, you will earn an interest of 6.25 percent, the deposits for 60 months period will earn an interest of 6.10 percent for the general public and 6.5 percent for senior citizens, and the deposits for 84 months and 120 months tenure will earn an interest of 6.1 percent for the general public and 6.9 percent for senior citizens.”