I’ve been hearing about the SBI Annuity Deposit Scheme and wanted to understand it better. Has anyone used it? How exactly does it work to provide a regular monthly income?
I was also curious about this when I first heard of it because it sounded a bit like a pension plan. The SBI Annuity Deposit Scheme is actually a fixed deposit scheme that lets you get a fixed monthly income from a lump sum amount you deposit once.
How the SBI Annuity Deposit Scheme Works
• You deposit a lump sum amount for once only.
• The interest is calculated on that amount on the basis of current FD rate.
• Every month you will get a fixed amount including both principal and interest.
• It continues for the whole tenure which you have selected. Once the tenure completes then account closes automatically.
SBI Annuity Deposit Scheme Highlights
| Feature | Details |
|---|---|
| Type of Scheme | Fixed deposit with monthly payout |
| Minimum Deposit | ₹25,000 |
| Payout Frequency | Monthly (principal + interest) |
| Tenure Options | 3, 5, 7, or 10 years |
| Interest Rate | Same as SBI Term Deposit rates |
| TDS on Interest | Yes, as per tax rules |
| Who Can Apply | Individuals, joint holders, minors (through guardians) |
| Nomination Facility | Available |
| Premature Withdrawal | Allowed with some conditions and penalty |