SBI Annuity Deposit Scheme: With SBI Annuity Deposit Scheme, customers can get a fixed amount every month by depositing a one-time lump sum. This scheme can help customers who want to use their savings for monthly income support. As per SBI official website, the fixed monthly amount is provided to the account holder against the one-time deposit. The monthly amount comprises "a part of the principal amount as well as interest on the reducing principal amount, compounded at quarterly rests and discounted to the monthly value."
The bank says that interest payment will start on the "anniversary date of the month following the month of deposit". In other words, the payment of interest to you will start next month on the same date on which the account was opened. Or, if you open the account on November 11, the payment of interest will start next month form December 11.
In case such "anniversary date" is non-existent, the interest will be paid on 1 day of next month, SBI says.
The minimum amount one can deposit in SBI Annuity Deposit scheme is Rs 25,000. Unlike the Post Office Monthly Income Scheme, which has the investment limit of Rs 4.5 lakh for an individual subscriber, the SBI’s scheme has no maximum deposit limit.
You can deposit any amount from Rs 25,000 and above in SBI scheme for a tenure of 3,5,7 or 10 years.
The minimum monthly annuity one a subscriber can get under the scheme is Rs 1000.
The interest rate offered on SBI Annuity Deposit scheme is same as SBI Fixed Deposit schemes of 3,5,7 and 10 years tenors.
SBI Annuity Deposit Scheme account can be opened by individuals, including minors in single or joint names. The bank says that the account can be opened with Single/Jointly/Jointly with survivorship benefits.