State Bank of India has launched another scheme named “SBI Annuity Deposit Scheme” for the citizens of India. Under the scheme, users will have to deposit a lump sum amount to any of the branches available for the State Bank of India. After that, they will get a monthly amount which will also include the principal amount along with the interest which has appeared on the principal amount which is available with the respective bank.
This amount is also known as monthly annuity instalments. The SBI Annuity Deposit Scheme is one of the beneficial schemes provided to the citizens of India. Users who want to become a part of the scheme programme should know about the scheme in detail. Scroll down the page to check scheme eligibility, benefits and others about the SBI Annuity Deposit Scheme.
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SBI Annuity Deposit Scheme
The period of deposits could be three years, five years, seven years or even ten years. Please note that ROI (rate of interest) will be the same as the term of deposit of the same time limit. Users who come under the category of older citizens will be getting some amount of extra interest rate deposit of the amount of Rs. 25,000. In several cases, candidates will also get a loan of up to 75% of the total balance amount.
Applicants can take benefit of the scheme by applying for it. The scheme is available in all branches located in India. One can also understand the scheme by visiting the nearest SBI branch. More details regarding the same scheme are available below in the article.
SBI Annuity Deposit Scheme: Highlights
| Name of the Scheme | SBI Annuity Deposit Scheme |
| Introduced by | State Bank of India |
| Beneficiaries | Citizens of India |
| Location | All over India |
| Official Web Portal | https://sbi.co.in/ |
Features of the SBI Annuity Deposit Scheme
In the following section, we will discuss some of the key features of the एसबीआई वार्षिक जमा योजना. Let’s take a look at them:
- The Annuity Deposit Scheme period is 36 months/ 60 months/ 84 months or 120 months.
- The scheme will allow the customer to deposit a lump sum amount one time and then receive the repayment of the same deposit in monthly instalments comprising some part of the principal along with the interest.
- The scheme is available in all branches of the State Bank of India.
- The amount which needs to be deposited is based on the least annuity of Rs. 1,000/- for a certain period.
- The officials have also allowed premature payments for the deposit whose amount is up to Rs. 15,00,000/- Please note that the penalty is chargeable according to the terms of the deposit. In case, any depositor dies then premature payment is allowed without putting any limit.
- Please note there is no upper limit applicable for the maximum deposit amount.
- The ROI (Rate of Interest) will be applicable according to the type of people who made the term deposit i.e., Public or Older Citizen.
- The annuity payment will be made on the anniversary date of the respective month followed by the month in which the deposit was made.
- In case, the date is non-existent i.e., 29, 30 and 31 then the amount will be provided on the first day of the next month.
- The officials have allowed the nomination in favour of individuals.
- In some special cases, the officials might grant the overdraft or loan upto 75% of the total balance amount of the annuity.
- Once, the OD or loan is disbursed then the further amount of the annuity will be deposited in the individual’s loan account only.
- The officials will provide the Universal Passbook instead of the Term Deposit.
- Individuals can apply for transferability among the available branches of SBI.
Interest Rates of the SBI Annuity Deposit Scheme
| Period | Interest Rate for General Citizens | Interest Rate for Older Citizens |
| 7 to 45 days | 2.90% | 3.40% |
| 46 to 178 days | 3.90% | 4.40% |
| 179 to 364 days | 4.40% | 4.90% |
| 1 to 2 years | 5% | 5.50% |
| 2 to 3 years | 5.10% | 5.60% |
| 3 to 5 years | 5.30% | 5.80% |
| 5 to 10 years | 5.40% | 6.20% |
Benefits of the State Bank of India Annuity Deposit Scheme
In the following section, we will elaborate on the benefits which one will get from the SBI Annuity Deposit Scheme. Here is the list of benefits:
- Period of investment: The offered scheme approaches varied tenure availabilities along with different maturity options. Readers will have an opportunity to choose a flexible timing scheme from alternatives commencing from several days to 10 years.
- Mode of Payment: In case, a deposit passes away then the officials will make the entire payment in advance. It will also ensure safe lock-in.
- Amount of Deposits: The officials have not set any age limit for the upper age to apply for the annuity deposit scheme.
- Loan Opportunity: Under the scheme, the depositor is allowed to overdraft a loan facility of up to 75% of the total balance available in the respective account.
Components of the SBI Annuity Scheme
| Premature Payment | The officials have allowed the payment of premature amounts in case the depositor dies under the scheme. To withdraw the deposit prematurely by looking for the agreement of the respective heirs of the deposited or the person who was the joining holder in the same account. The bank is also bound to follow the same rule. |
| Facility for Loan | The officials allow an overdraft or loan amount of up to 75% of the total annuity balance in some situations. The officials will put the periodic annuity payments into the loan account of the respective borrower in case of disbursement of such loans. |
| Taxes on the Interest Earned | Please note that the interest amount is applicable for TDS in case of annuity deposit. The authority as well as broowers can calculate the interest rate amount by rounding off the amount to the next rupee value. As a result, the last instalment of the annuity amount might be a little different. |
| Interest Rates | The SBI Annuity FD account provides a return amount which is easily comparable to other term deposits offered by the State Bank of India which depends upon the period chosen by the consumers. Around 1/10th of a percentage point will be treated as one basis point. |
| Maturity Amount | The principal amount along with the interest amount on the reduced principal needs to be paid in equal instalments over a certain period in the Annuity Deposit Scheme. The reason behind this is to make the maturity amount remain zero maturity. |
| Eligibility | All Indian citizens of India are eligible for benefits of the State Bank of India Annuity Scheme including minor citizens. Customers who come under the category of NRI or NRO are not eligible to apply for the scheme. |
How to apply for the एसबीआई वार्षिक जमा योजना?
Aspirants who are eligible as well as interested in the above-mentioned scheme should apply for it. The scheme is available in all branches available in India. Users can visit the nearest branch of the State Bank of India and get details regarding the scheme once again. If you are satisfied with the scheme and have cleared all your doubts then you can simply ask them for the application form.
Provide the details asked on the form carefully, and also attach the printed copy of the requisite documents. The respective authority will verify the details and complete the application process. After a while, you will become a part of the SBI Annuity Deposit Scheme.
Comparison of Top 20 Scheduled Banks based on FD Rates
Let’s take a look at the interest rates offered by other banks for better comparison:
| Banks | Highest FD rate (% Per Annum) | 5-year FD rate (% Per Annum) | 3-year FD rate (% Per Annum) | 1-year FD rate (% Per Annum) | Additional interest rate for older citizens (% Per Annum) |
| RBL Bank | 8 | 7.1 | 7.5 | 7.5 | 0.5 |
| DCB Bank | 8 | 7.4 | 7.6 | 7.15 | 0.50-0.60 |
| Fincare Small Finance Bank | 8.61 | 8 | 8.11 | 7.65 | 0.6 |
| Equitas Small Finance Bank | 8.5 | 7.25 | 8 | 8.2 | 0.5 |
| Utkarsh Small Finance Bank | 8.5 | 7.5 | 8.5 | 8 | 0.60 |
| Ujjivan Small Finance Bank | 8.25 | 7.2 | 7.2 | 8.25 | 0.5 |
| Shivalik Small Finance Bank | 8.1 | 7 | 8 | 8.1 | 0.50 |
| Unity Small Finance Bank | 9 | 7.65 | 7.65 | 7.35 | 0.5 |
| Suryoday Small Finance Bank | 8.65 | 8.25 | 8.6 | 6.85 | 0.40-0.50 |
| AU Small Finance Bank | 8 | 7.25 | 8 | 6.75 | 0.50 |
| YES Bank | 7.75 | 7.25 | 7.25 | 7.25 | 0.50-0.75 |
| Punjab & Sind Bank | 7 | 6 | 6 | 6.2 | 0.5 |
| Bandhan Bank | 7.85 | 5.85 | 7.25 | 7.25 | 0.50-0.75 |
| Induslnd Bank | 8 | 7.25 | 7.25 | 7.5 | 0.40-0.75 |
| SBM Bank | 8 | 7.75 | 6 | 7.05 | 0.5 |
| IDFC First Bank | 8 | 7 | 7.25 | 6.5 | 0.5 |
| Jana Small Finance Bank | 8.5 | 7.25 | 8.5 | 8 | 0.5 |
| ESAF Small Finance Bank | 8.5 | 6.25 | 6.75 | 6 | 0.50 |
| Punjab National Bank | 7 | 6.5 | 7 | 6.75 | 0.5 |
| Bank of Baroda | 7.25 | 6.5 | 7.25 | 6.75 | 0.50-1.00 |
How Is The SBI Annuity Deposit Calculated?
The State Bank of India uses a certain formula for the calculation of the ABI Annuity Deposit. The formula to calculate SBI Annuity Deposit monthly income is as follows.
A = P (1+r/n) ^ (n * t)
Here:
A= Maturity amount, P= Principal amount, r= Rate of interest, n= number of times the interest will compound within a year and t= Total tenure
Suppose,
The principal amount is 50,000, the Rate of Interest is 0.065, the number of times the interest will compound within a year is and the tenure is 5.
Then, a person is going to generate a total of Rs. 19,021 interest on the principal amount of Rs. 50,000. According to this, a person will get a return of Rs, 69,021. Under the above-mentioned scheme, monthly repayment of the total principal amount will be provided. So, the person will get an amount of Rs. 1,150/- per month tell the mentioned tenure. After the completion of the mentioned tenure, the maturity amount will become 0.
SBI Annuity Deposit Yojana Calculator 2023
It is a smart thing to be able to computer the returns which can be expected before applying for the scheme or moving the process any further. It will help the users clearly understand the amount which needs to be invested in order to get better returns in the future. Applicants can use the compound interest formula to calculate the returns which can be expected manually.
But, it is important to keep in mind that manual calculation takes a lot of time, and one cannot be 100% sure that the calculation is error-free. Therefore, to avoid these kinds of errors or save as much time as they can, one can use the option to calculate the same return using online methods.
There are multiple calculators available online for users which will automatically calculate the annuity deposit amount free of close. One just has to fill out the values correctly to get error-free data and quick results. One can choose infinite data to compute the returns and with the help of this, one can easily choose the correct amounts which need to be invested to get most beneficial returns.
Frequently Asked Questions
What are the eligibility criteria for the SBI Annuity Deposit Scheme?
Below is the eligibility criteria required for the SBI Annuity Deposit Scheme:
1. Candidates must be residents of India including minors
2. Mode of Holding Singly or jointly
What are the terms and conditions for the State Bank of India Annuity Deposit Scheme?
Below are the terms and conditions for the scheme:
1. Premature closure is available in case of the death of a depositor.
2. The officials have allowed premature payment for deposits up to Rs. 15,00,000/-
3. Premature penalty is chargeable according to the Term Deposit.
What is the minimum and maximum deposit could one make in the SBI annuity deposit scheme?
Please note that the officials have not set any limit for the maximum deposit which can be done under the scheme. However, the minimum amount set for the SBI annuity deposit scheme is Rs. 25,000/-
Can I make premature payments with the SBI annuity deposit scheme?
It is important to note that the bank usually does not allow premature payments. However, the consumers would be able to deposit in the case of the death of the depositor.