As the biggest public sector lender in India, State Bank of India offers a range of investment plans and financial products to enable investors to get a reasonable return on their investment. Indian banks provide a range of options based on the maximum amount a customer may deposit into a certain plan.
You can make a lump sum deposit into the State Bank of India’s Annuity Deposit Scheme, and you’ll get payments every month that cover principal as well as interest that has accumulated on the declining principal amount that the bank retains. Also referred to as annuity payments due each month.
The terms of the deposits are three, five, seven, or 10 years. For the same length of time, the interest rate is the same as that of the term deposit. Seniors would also get a better interest rate on their term deposits. This plan has no maximum limit, however, a Rs. 25,000 minimum deposit is required. You can be eligible to borrow up to 75% of the outstanding debt in certain situations. All SBI branches are able to transmit it.
Eligibility For SBI Annuity Deposit Scheme
Anybody interested in an SBI annuity plan has to include a minor in their household income. It is possible to employ a single or joint holding. The facility does not provide access to clients who are classified as NRE or NRO.
Interest Rate On SBI Annuity Deposit Scheme
The interest rate for senior persons will vary from 3.40% to 6.20%, while for general residents it will range from 2.90% to 5.40% over a period of 7–45 days to 5–10 years.
Features Of SBI Annuity Deposit Scheme
- A minimum monthly annuity of Rs.1000 is used to calculate the deposit amount for the applicable term.
- For deposits up to Rs. 15,00,000, early payment is permitted. If appropriate, a penalty is levied on term deposits. In the case of the depositor’s passing, early payment is allowed without penalty.
- The amount of the deposit is not limited.
- Interest rate that applies to public and senior citizen term deposits
- On the anniversary of the month that follows the month of the deposit, annuity payments are made.
- If the 29th, 30th, and 31st are not present, it will be paid on the first day of the next month.
- Only individuals are eligible for nomination
- Universal Passbook takes the role of Term Deposit.
- Permission to transfer across branches.