The State Bank of India, which is the country’s largest public sector lender, offers a host of schemes for those who want a safe and secure future without having to risk their money. Several people in India do not want to invest in risk assets like stocks and cryptocurrencies, especially to avoid situations that are prevailing at present where the markets are seeing a downward movement due to inflation and other reasons. Indians, especially senior citizens and middle class, prefer to put their money in savings schemes that do not change with market situations and are not subject to any risk, while also providing higher returns. To cater to this, the State Bank of India has launched the SBI Annuity Deposit Scheme.
What is SBI Annuity Deposit Scheme
The SBI annuity deposit scheme is a policy whereby customers can get a monthly income by depositing a one-time lumpsum amount. “Under this scheme, a lump sum amount is deposited by a customer which is repaid to the customer over a period in equated monthly installment which comprises part of principle amount and interest on the reducing principle amount as well,” says the website of the lender.
Using the scheme customer can have fixed monthly amount against his one time deposit. Payment will start on anniversary date of the month. If date is non-existent (29th, 30th and 31st), it will be paid on the 1st day of the succeeding month.
Features of SBI Annuity Deposit Scheme
– SBI customers can avail this scheme over a period of deposit of 36, 60, 84 or 120 months, after which they will start getting returns.
– SBI annuity deposit scheme is available at all branches. Transferability allowed among branches
– Deposit amount based is on the minimum monthly annuity of Rs 1000 for the relevant period. This means that for a 3-year scheme, a customer has to deposit at least Rs 36,000. There is no upper limit on deposit amount.
– Premature payment is allowed for the deposits up to Rs 15 lakh under the SBI annuity deposit scheme
– The rate of interest is the same as applicable to fixed deposits for Public and Senior Citizens
– Payment of annuity on the anniversary date of the month following the month of deposit. If that date is non-existent (29th, 30th and 31st), it will be paid on the 1st day of the next month.
– Overdraft or loan up to 75 per cent of the balance amount of annuity may be granted on special cases, the SBI said. After disbursal of OD/loan, further annuity payment will be deposited in loan account only.
– Universal Passbook is issued in lieu of Term Deposit under the SBI annuity deposit scheme.
– All resident individual customer including minors can avail this facility. NRO and NRE customer can not avail the SBI annuity deposit scheme facility.