Is the SBI Annuity Deposit Scheme safe and worth investing in 2025?

Banking HRMS
1

I’m thinking of investing in the SBI Annuity Deposit Scheme in 2025, has anyone tried it? Was it safe, and do you think it’s worth investing for regular income?

2

I was also curious about this because many of us want a fixed monthly income but are not sure if the SBI Annuity Deposit Scheme is still a good choice in 2025.

Is the SBI Annuity Deposit Scheme safe and worth investing in 2025?

  • Safe bank product
    The scheme is run by State Bank of India and your money is insured up to ₹5 lakh by DICGC, so the risk of losing the deposit is almost zero .

  • Fixed monthly income
    You deposit a lump sum once and receive the same amount every month for 3, 5, 7 or 10 years. This helps people who need a regular pay-like flow without market ups and downs .

  • Rate is fixed on the day you open
    General citizens get 5.45 % to 5.50 % and senior citizens get 5.95 % to 6.30 % for 3-10 year plans in 2025. Once you open, this rate stays with you for the whole period .

  • Money finishes at the end
    Each month you receive part of your own deposit plus interest. When the chosen years finish, the account becomes zero. If you need a big amount later, this plan is not for that.

  • Tax is taken before you get the money
    The bank cuts TDS on the interest part. The monthly amount you receive is after this tax, so you should plan your yearly tax return accordingly .

  • No lifelong income
    Unlike pension plans that pay till death, this scheme stops after the selected years. If you live longer, you will have to open a new plan or find another income source.

  • Better rate than savings, lower than some deposits
    The rate is close to normal fixed deposits but higher than savings account interest. If you want monthly cash without risk, this is worth it. If you want a big corpus later, keep some money in plain fixed deposits too.

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So, the plan is safe and useful for people who need steady monthly cash without market risk, but it should be mixed with other savings because the money ends when the chosen years end.

Safety and Worth in 2025

Point What it means
Bank safety SBI product, insured up to ₹5 lakh
Monthly cash Same amount every month, no market risk
Rate 2025 5.45 %-6.30 %, fixed for full period
End of plan Zero balance, no lump sum back
Tax TDS cut before you receive money
Worth? Good for regular income, not for long-term growth