If looking for a side income or even if you are a minor earning nothing as of now, here is your chance to make some money.
The SBI Annuity Deposit Plan is here that requires the depositor to pay a specific amount one time in lump-sum and then receive the same in Equated Monthly Instalments (EMIs). However, the amount you get in return will also include 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?
Other than SBI customers in the NRE or NGO categories, everyone else, including minors, can open an SBI Annuity Deposit Scheme. The mode of holding here could be both singly held or jointly held.
The minimum amount that needs to be deposited in the SBI annuity account is based on a minimum monthly annuity of Rs 1000 for the relevant period. i.e for 3 yrs. This means Rs 1000 for three years i.e. Rs 36,000. However, there is no maximum limit The scheme period varies starting from 3 years further going to 5 years, 7 years and 10 years.
The rate of interest rate that you will get here would same as SBI fixed deposits (FD). For example, if you make a deposit for 5 years, then you will get an interest rate applicable to the fixed deposit of five years. At present, SBI offers a 5.30% interest rate on FDs maturing in 5 years.
Like FDs, senior citizens will get 50 basis points (bps) above the applicable rate in the SBI annuity scheme.
As per a Times Now report, “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”.