I’m planning to invest ₹5 lakh in SBI’s Annuity Deposit Scheme in 2025. Has anyone done this? How much monthly income did you earn, and how did the payout work for you?
I was also curious about this, and while I couldn’t find a fixed official number, here’s how you can estimate monthly income from ₹5 lakh in SBI’s Annuity Deposit Scheme in 2025 and what affects the result.
Estimate: Monthly Income from ₹5 Lakh in SBI’s Annuity Deposit Scheme (2025)
So, basically we use standard annuity format which SBI and financial sites use:
Here A is monthly annuity, P is the principal and r is the periodic interest rate whole n is number of periods.
Suppose:
You deposit amount 5,00,000 for 5-year (60 months) tenure. Assume an interest rate of 6.50% p.a. (typical for mid to long term SBI term rates)
Then your estimated monthly payout might be around ₹4,800 to ₹5,300 (this is a rough estimate, not guaranteed)
Factors That Can Change the Monthly Amount
| Factor | Effect on Monthly Income |
|---|---|
| Interest rate at time of deposit | Higher rates → more interest component → higher monthly payout |
| Chosen tenure | Longer tenures spread principal thinly → lower monthly amount |
| Tax / TDS on interest | Deduction reduces actual money you receive |
| Formula & periodicity | SBI computes compounding (often quarterly) and distributes monthly |
| Changes in scheme rules | SBI may set rules for minimum or formula adjustments |